ESG—Australia - Carbon Offsets: Australian Regulatory Framework

Taylor Swift's "Eras Tour" was one of the highest grossing music tours of all time with approximate proceeds exceeding US$1 billion. While this is a monumental feat, Taylor Swift also gained negative attention during the tour for her liberal use of private jets. It has been reported, however, that she, like many businesses across the world, buys carbon offsets to compensate for her emissions.

Carbon offsets, otherwise known as carbon credits or emissions units, can be bought to offset emissions made by a person or business. Carbon credits are most typically used to offset greenhouse gas (GHG) emissions. If a business buys enough carbon credits to offset all its GHG emissions, then that business is said to achieve "net zero" (i.e. the sum of all its emissions and offsets are zero).