Chris Bowen asked to review Climate Change Authority board's membership after conflicts raised

The Climate Change Minister has been urged to review the Coalition government appointment of Climate Change Authority chair Grant King, who holds other roles in private companies relating to carbon credits that may present conflicts of interest.

The Climate Change Authority now plays a more prominent role in achieving the country's emissions reduction target following the Labor government's election.

It's tasked with giving advice to the federal government on progress toward Australia's emission reduction targets and also tracks whether safeguard mechanism emissions are declining consistently, the carbon credit scheme is working effectively and how much methane is being emitted.

A Climate Change Department spokesperson did not directly address questions over whether Mr Bowen had sought information on the issue since coming into office but said the authority dealt with conflicts of interest in line with the relevant laws.

The mounting pressure comes as a review looking into how board members are appointed to government boards is being finalised for release in the coming months.

In a letter sent last Thursday, Polly Hemming, climate director at progressive think tank the Australia Institute, called on Mr Bowen to probe how the authority has dealt with conflicts of interests relating to Mr King's other external responsibilities beyond his appointment as chair.

Others, such as ACT independent senator David Pocock, have also raised the issue of the authority's integrity with the minister as well.

Ms Hemming outlined Mr King, a former chief executive of gas giant Origin Energy who was appointed by Angus Taylor in 2021, holds the position of chair at GreenCollar, the largest carbon credits aggregator in Australia.

Mr King's other roles also include being the chair at HSBC Bank Australia, which participates in transactions relating to the acquisition of carbon offsets and being a principal of GK Advisory Pty Ltd - a position in which he provides advice to clients on the energy market, climate change and environmental issues.

Mr King was also the chair of CWP Renewables - a company that developed, operated and owned renewable energy resources - before it was acquired by Squadron Energy in March.

The Canberra Times is not suggesting Mr King has undertaken any wrongdoing.

Ms Hemming's letter to the minister pointed to inconsistencies between the Climate Change Authority Act and how the authority dealt with possible conflicts.

Mr King declared his role at GreenCollar a potential conflict of interest during the authority's review into international offsets completed in August 2022.

As a result of the ties, Mr King and board members agreed that another member would sit as chair and he would not participate in discussions on aspects of the review relating to the vintage of units eligible and issues that might directly impact supply and demand of offsets in Australia.

But Ms Hemming said it raised further questions given the laws suggested the authority's approach had not been appropriate.

"We consider that the way in which the CCA has previously sought to address Mr King's potential conflicts of interest is inconsistent with the provisions of the CCA Act and the PGPA [Public Governance, Performance and Accountability] Act," the letter read.

"The Australia Institute urges you to correct the way in which the CCA has sought to address Mr King's potential conflicts of interest in line with your responsibilities under the CCA Act."

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A department spokesperson, who responded after questions were sent to Minister Bowen's office, said a standing notice of members' interests was updated around every six weeks and handed to the minister each year.

"The notice is provided to the minister at least annually," the spokesperson said.

"Members are obliged to declare the existence of a potential or actual conflict of interest, in sufficient detail to enable an adequately informed decision to be made in relation to the identification of any conflict of interest, the type of any conflict of interest and appropriate conflict management."

At the May 9 meeting, members agreed to publish the standing notice of members' interests online in "coming weeks".

Ms Hemming said the minister had to address the integrity questions if it wanted to maintain the public's confidence.

"Last year, the government said it was 'bolstering' the independence of the Climate Change Authority. There's no such thing as improved independence - something is either independent or it's not," she said.

"The credibility of the Climate Change Authority will remain in doubt until it is clear that potential industry interests have been adequately addressed, in accordance with the relevant legislation.

"Minister Bowen has a responsibility to review and address the way the Climate Change Authority and the previous minister have managed appointments to the Climate Change Authority's board."

Correction: This article has been updated to clarify that Mr King is no longer a chair of CWP renewables