A grazier locked into Australia's carbon offset scheme has backed calls for an independent inquiry into allegations the market is "a rort", saying the numbers on his property have never added up.
A 7.30 investigation, which aired earlier this week, sent shock waves through the industry and federal government, as former head of the Emissions Reduction Assurance Committee Andrew Macintosh alleged the schemes had degenerated to become a rort.
"Payments are being made to people to not chop down forests that were never going to be chopped down, to grow forests that are already there, to grow forests in places that will never sustain permanent forests," Professor Macintosh told 7.30.
Grazier Jesse Moody said there had been little benefit on his property in south-west Queensland, near Cunnamulla, since beginning the project six years ago.
The land was previously used for grazing.
The grazier and 2022 Nuffield Scholar noticed improvements in the land for the first three years following destocking, but it then deteriorated quickly.
"You start seeing the country going backwards at quite a rate," he said.
Numbers 'did not add up'
Mr Moody said he was was guaranteed more carbon credits than have ever eventuated.
"In our project we're estimated considerably more than what we've been able to deliver, which just highlights how much of a rort the scheme is," he said.
"We're in a very arid environment and we're not going to see those carbon sequestration levels that they're predicting in our environment, it's just not possible.
Mr Moody said the scheme needed to be performed in an environment that was more conducive to carbon sequestration.
"If you're going to fudge the facts, it's going to hurt us in the long term," he said.
Scheme has 'high degree of integrity': Regulator
Energy and Emissions Reduction Minister Angus Taylor told 7.30 Australia's carbon credits scheme is seen as one of the best "in the world".
"I have great confidence in the strength of this program," he said.
The Clean Energy Regulator, which assists individuals and organisations undertaking projects to reduce emissions, said in a statement that the Emissions Reduction Fund (ERF) was a "robust offsets scheme with a high degree of integrity".
"All [human induced regeneration] projects must undergo at least three audits, which also check abatement claims and [include] regular regeneration checks," the regulator said.
"In extreme circumstances inadequate tree growth can result in [Australian Carbon Credit Units] being relinquished — but this has never occurred."
Growing calls for independent inquiry
But others, including ANU professor Mark Howden and Greens leader Adam Bandt, have called for an inquiry into Australia's Emissions Reduction Fund.
While it might end up hurting Mr Moody financially, the second-generation grazier said he supported an independent inquiry into the scheme.
The implications could have big impacts in his district.
At the end of 2020, there were 37 carbon farming projects in the Paroo Shire, which had earned more than $40 million.
Over the next decade, $230 million is expected to be paid out to ERFs, or carbon farms, across the country.
"I think it's a wake up call that it desperately needs, yeah it might hurt us financially, but I think it's something that's needed not just for our sake, but for the sake of our district and the environment in a larger way," Mr Moody said.
