Carbon markets key tool on the way to net zero

afr.com:

Carbon markets are going to be a key tool as Australia, and the world, race towards interim net-zero targets. NAB chief climate officer, Jacqueline Fox, says as a major business bank, with a large market share in agribusiness, NAB has strong insights into both the supply and demand sides of the carbon market in Australia.

Fox, who leads the bank’s climate growth strategy, said carbon markets will play a pivotal role in helping businesses offset emissions that are difficult to eliminate entirely. However, carbon offsets were not a standalone solution to reducing emissions.

It’s imperative for agribusiness customers participating in carbon projects to set realistic expectations for potential credit yields. iStock

“Carbon strategies are an important element in our climate growth strategy, as we support our customers to decarbonise – but they are only one part,” says Fox.

“As a general principle decarbonisation must come first, offset second, though we also recognise at a sector level some sectors are harder to abate than others.”

NAB is one of Australia’s largest agribusiness banks with a market share of over 30 per cent and the bank sees significant potential in helping farmers both utilise, and on sell, carbon credits.

Fox says building the climate capability of its bankers has been a focus, as well as finding ways to provide quality, science-based insights for its agribusiness customers.

Jacqueline Fox, chief climate officer at NAB. 

“Three hundred and fifty NAB agribusiness bankers have undergone climate adaptation and risk training with the Melbourne Business School. These bankers now have better skills and knowledge to support customers to manage and mitigate climate risks and make the most of emerging transition