From www.aicd.com.au: Directors should adopt a strategic approach to utilizing carbon credits and renewable energy certificates (RECs) as part of their corporate climate transition plans, particularly in high-energy-demand sectors.

Mandatory climate reporting in Australia requires detailed disclosures regarding the planned and actual utilization of these instruments, including compliance obligations and decarbonization goals.

Transparency and effective governance practices are essential for organizations to maintain credibility in their climate commitments while managing regulatory and reputational risks.