The Carbon Market Institute’s Carbon Marketplace launched

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Following extensive consultation during 2018, and in line with the 2017 review of climate change policies, the amendments achieve three main changes:

The Department will work with the Clean Energy Regulator to communicate the details of these changes.

The Department is continuing to develop outstanding technical details, including developing priority prescribed production variables and default emissions intensity values that will be included in Schedules 2 and 3 to the Rule. We look forward to engaging with you as we finalise these details.

CER announces eighth Emissions Reduction Fund auction results

The Clean Energy Regulator has announced the results of the eighth ERF auction.

At this auction, the Regulator awarded 34 carbon abatement contracts to deliver 3.3 million tonnes of abatement, at an average price of $13.87 per tonne. Newly contracted activities are spread across agriculture, vegetation, savanna fire management and waste projects. The average price across all seven auctions is now $12 per tonne.

Over $2.3 billion has now been committed under the ERF, with more than $220 million available for future purchasing.

The Emissions Reduction Fund continues to contribute to the government’s emissions reduction targets, with over 37 million tonnes of abatement already delivered.

ERF auctions results

  Eighth auction Cumulative total
Abatement purchased 3.3 million tonnes 193 million tonnes
Average price per tonne $13.82 $12
Total committed $45 million $2.29 billion
Total contracts 34 457
Total projects contracted 36 477

More information on the results of the eighth ERF auction are available on the Regulator’s website.

Public consultation on amendments to the Emissions Reduction Fund Safeguard Mechanism

The Government today released exposure draft amendments to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015, and an accompanying explanatory document to assist with understanding the draft amendments.

The exposure draft amendments and the explanatory document should be read in conjunction with the consultation outcomes paper, which sets out the Government’s position for updating the Safeguard Mechanism, taking into account the views expressed in submissions in response to the consultation paper, released earlier this year.

The Government invites written submissions on the exposure draft amendments from all interested businesses and members of the community. The submission period is open for six weeks with a closing date of Friday 5pm AEST, 7 September 2018. Providing your submission by the closing date will ensure it can be considered as amendments to the Safeguard Mechanism Rule are finalised.

New guidance on Native title, legal right and eligible interest-holder consent

The Clean Energy Regulator has developed guidance exploring how the Native Title Act 1993 interacts with requirements of the Emissions Reduction Fund, including obtaining legal right and consents from all eligible interest-holders to undertake a project.

Native title refers to the bundle of rights and interests in land and waters that Aboriginal and Torres Strait Islander people can hold under traditional laws and customs. Area-based Emissions Reduction Fund projects subject to native title law must consider native title holder interests—particularly with regard to satisfying legal right and eligible interest-holder consent compliance obligations for the project. This is to ensure the interests and rights of Indigenous Australians are taken into account, including where relevant their right to undertake project activities on native title land.

The guidance sets out background on Native Title interactions with carbon farming, what is required by law, as well as best practice approaches for undertaking genuine, early engagement with Indigenous communities and native title holders affected by a project.

The guidance also sets out the current status of state and territory land laws relevant to running carbon projects through the Emissions Reduction Fund.

The guidance is available on the Clean Energy Regulator’s website.

Launch of carbon project developers Code of Conduct

On 1 July the Carbon Market Institute launched an industry led and owned voluntary Code of Conduct for carbon project developers. The code will help promote market integrity for the growing carbon farming industry, currently valued at over $2 billion. It will also encourage consumer protection and accountability for carbon industry practitioners and service providers across Australia.

The code defines industry ‘best practice’ on a number of issues such as transparency, accountability, and compliance with legislation.

A foundation stage for the code commenced on 1 July 2018, with full implementation scheduled for 2020.

Initial foundation signatories include carbon project developers GreenCollar, Carbon Farmers of Australia, the Aboriginal Carbon Fund, Select Carbon and Carbon Market Advisory.

The Carbon Market Institute is also establishing an independent Code Review Panel tasked with carrying out compliance audits, the investigation of complaints and breaches, and the enforcement of sanctions.

The Code of Conduct is available on the Carbon Market Institute’s website.

CER announces seventh Emissions Reduction Fund auction results

The Clean Energy Regulator has announced the results of the seventh ERF auction.

At this auction, the Regulator awarded 32 carbon abatement contracts to deliver over 6.7 million tonnes of abatement, at an average price of $13.52 per tonne. Newly contracted activities are spread across energy efficiency, agriculture and vegetation projects. The average price across all seven auctions is now $11.97 per tonne.

Over $2.29 billion has now been committed under the ERF, with around $250 million available for future purchasing.

The Emissions Reduction Fund continues to make a substantial contribution toward the government’s emissions reduction targets, with over 31 million tonnes of abatement already delivered.

ERF auctions results

  Seventh auction Cumulative total
Abatement purchased 6.67 million tonnes 191.96 million tonnes
Average price per tonne $13.52 $11.97
Total committed $90 million $2.29 billion
Total contracts 32 461
Total projects 32 438

More information on the results of the seventh ERF auction are available on the Regulator’s website.

CER announces seventh Emissions Reduction Fund auction

The Clean Energy Regulator will hold a seventh Emissions Reduction Fund auction on Wednesday 6 and Thursday 7 June 2018.

The seventh auction guidelines on the Clean Energy Regulator’s website provides more information on the upcoming auction. The Clean Energy Regulator will be purchasing between 25 and 100 per cent below the benchmark price.

This auction announcement comes after the release of the new soil carbon method, which enables projects increasing the inputs of carbon storage in soil to participate in the Emissions Reduction Fund. There is more than $265 million still available in the Emissions Reduction Fund, and we expect future purchasing opportunities to occur after the seventh auction. The Clean Energy Regulator is encouraging all participants to bid competitively, as results from previous auctions show there is a high profitability in lower price bids.

Participants can register a project at any time without having to seek a contract for their project’s emission reductions with the government.

For more information on eligibility to participate in the Emissions Reduction Fund, visit the Clean Energy Regulator’s website.

Public consultation on reviews of two ERF vegetation methods – Native Forest from Managed Regrowth and Human Induced Regeneration

The Emissions Reduction Assurance Committee has commenced its review of two ERF methods: the Human-Induced Regeneration method and the Native Forest from Managed Regrowth method. These methods support native forest revegetation projects.

The Committee undertakes method reviews as part of its regular business.

Method reviews ensure the Emissions Reduction Fund’s offsets integrity standards continue to be met (including whether emissions reductions credited under the method remain genuine and additional).

To inform the review, the Committee is conducting public consultation to seek feedback on whether projects covered by the methods would continue to result in carbon abatement unlikely to occur in the ordinary course of events.

For further information on the public consultation process and instructions on how to make a submission, please visit the Department’s method reviews page.

The Committee will provide advice on the outcomes of the reviews to the Minister for the Environment and Energy. If the Committee advises that the method requires changes, the Minister may seek to vary the method. Further public consultation would be undertaken on any variations to the methods.

Submissions are due by the close of public consultation, on 13 April 2018.

posted 15 December 2017

CER announces sixth ERF auction results

The Clean Energy Regulator has announced the results of the sixth ERF auction.

The Emissions Reduction Fund has now secured over 191 million tonnes of abatement through 404 contracts, with more than 26 million tonnes already delivered. 

At this auction, the Regulator awarded 26 carbon abatement contracts to deliver over 7.9 million tonnes of abatement, at an average price of $13.08 per tonne.  The average price across all six auctions is now $11.90 per tonne.  

The consistently competitive prices and good volumes achieved across the six auctions demonstrate the efficiency and effectiveness of the ERF.

Contracts were awarded to projects across a variety of eligible activities, including the first ERF plantations project.

Over $2.28 billion has now been committed under the ERF, with more than $265 million still available for future purchasing.

ERF auctions results

  Sixth auction Cumulative total
Abatement purchased 7.95 million tonnes 191.7 million tonnes
Average price per tonne $13.08 $11.90
Total committed $104 million $2.28 billion
Total contracts 26 404
Total projects 26 438

More information on the results of the sixth ERF auction are available on the Regulator’s website.

posted 12 December 2017

Emissions Reduction Assurance Committee review of ERF methods – Native Forest from Managed Regrowth and Human Induced Regeneration

The Emissions Reduction Assurance Committee has announced it will review two ERF methods; the Human-induced Regeneration method and the Native Forests from Managed Regrowth method. These methods support native forest revegetation projects.

The committee undertakes periodic method reviews as part of its regular business.

Method reviews ensure all offsets integrity standards for the scheme continue to be met, including that emissions reductions credited under methods remain genuine and additional.

The committee will consult with stakeholders, including through a discussion paper, which will be published in the first quarter of 2018. The discussion paper and instructions on how to make a submission will be available on the Department of the Environment and Energy’s website.

For more information on the reviews, visit the Department’s method reviews webpage.

posted 30 November 2017

Minor changes to seven methods and closure of the CFI Mapping Tool

The Department of the Environment and Energy is proposing minor changes to seven Emissions Reduction Fund methods. These methods include:

  • Reforestation by Environmental or Mallee Plantings
  • Human-Induced Regeneration of a Permanent Even-Aged Native Forest
  • Native Forest from Managed Regrowth
  • Avoided Clearing of Native Regrowth
  • Estimating Sequestration of Carbon in Soil Using Default Values
  • Reducing Greenhouse Gas Emissions from Fertiliser in Irrigated Cotton
  • Sequestering Carbon in Soils in Grazing Systems

The majority of the proposed changes reflect the retirement of the Carbon Farming Initiative (CFI) Mapping Tool.

The tool will no longer be provided on the Department’s website from early 2018, in response to scheme participants who have indicated a preference for other readily available software platforms used to map projects. The Department will continue to provide access to online data available through the CFI Mapping Tool.

Other minor corrections will be made to the Reforestation by Environmental or Mallee Plantings method, and Sequestering Carbon in Soils in Grazing Systems method. These corrections address typographic errors and clarify the application of equations to transferring project areas for the Environmental or Mallee Plantings method.

These changes will be made through a single legislative instrument, and are expected to take effect by early 2018.

Comments or enquiries on these changes can be sent to ERFforests@environment.gov.au by 8 December 2017.

posted 17 November 2017

Draft Savanna Fire Management methods released for consultation

The two draft savanna fire management methods have been released for public consultation. These new drafts reflect changes made in response to feedback from earlier public consultation periods and workshops on these methods. The two draft methods are:

  • Carbon Credits (Carbon Farming Initiative—Savanna Fire Management—Sequestration and Emissions Avoidance) Methodology Determination 2018; and
  • Carbon Credits (Carbon Farming Initiative—Savanna Fire Management—Emissions Avoidance) Methodology Determination 2018

Submissions on the draft methods close on 27 November 2017.

The draft methods build on earlier savanna methods. Both draft methods set out the rules for managing fire in Australia’s savannas to enable businesses to earn Australian Carbon Credit Units under the Emissions Reduction Fund. The draft sequestration method credits both carbon sequestered in dead organic matter and also avoided greenhouse gas emissions. The draft emissions avoidance method only credits avoided emissions. One project area can only be registered under one savanna fire management method at any one time.
The draft emissions avoidance method will replace the existing Carbon Credits (Carbon Farming Initiative—Emissions Abatement through Savanna Fire Management) Methodology Determination 2015, which will be revoked. Existing projects can choose to either remain on their current method or transfer to one of the new draft methods, once they have been made.

The draft methods are accompanied by a new savanna technical guidance document which provides guidance on many technical aspects of the draft methods.

More Information on the draft method and instructions on how to provide a submission are available on the Savanna fire management draft methods – consultation page.

posted 5 September 2017

Release of the draft method – Measurement of soil carbon sequestration in agricultural systems – for public consultation

The Department of the Environment and Energy has released a new draft method – Measurement of soil carbon sequestration in agricultural systems – for public consultation. Submissions on the draft method close on 2 October 2017.

The draft method provides an opportunity for landholders and businesses to earn Australian Carbon Credit Units by managing their land in a way that could lead to an increase in soil organic carbon. The draft method uses direct measurement to detect changes in soil carbon and a regression approach to attribute that change to human activity. The method provides for project proponents to be credited with this change, subject to discounts and buffers.

The new draft method contains elements adapted from the two existing soil carbon methods. The major differences include:

  • an increased range of eligible farming systems including cropping, grazing and horticultural production systems;
  • an improved soil sampling strategy to reduce the uncertainty of soil carbon estimates;
  • allowing the use of soil amendments containing biochar and accounting for other additives that may contain carbon including clay;
  • an additional measurement option allowing for estimation of carbon stocks using in-field or laboratory sensors and associated models, as well as the current combustion techniques;
  • a ten year baseline period; and
  • use of a land management strategy, to be developed or reviewed by an independent person.

The proposed differences are designed to increase integrity and flexibility while reducing costs and complexity.

Existing ERF projects under the existing sequestering carbon in soils in grazing systems method, would be able to apply to transfer to the measurement of soil carbon sequestration in agricultural method, if the new method is made. 

More Information on the draft method and instructions on how to provide a submission are available at the Department’s website.

posted 4 September 2017

CER announces sixth Emissions Reduction Fund auction

The Clean Energy Regulator will hold a sixth Emissions Reduction Fund auction on Wednesday 6 and Thursday 7 December 2017.

The sixth auction guidelines confirm the format remains unchanged to the previous auction. The Clean Energy Regulator retains flexibility to choose the volume of abatement purchased—between 50 and 100 per cent on offer below the benchmark price.

This auction announcement comes after the release of the new plantation forestry method, allowing carbon sequestration from plantations to enter the scheme for the first time. There is more than $300 million still available in the Emissions Reduction Fund and we expect additional purchasing processes to occur in 2018. The Clean Energy Regulator will assess December auction bids knowing that new methods will bring fresh participation next year.

Participants can register a project at any time without having to seek a contract for their project’s emission reductions with the government.

For more information on eligibility to participate in the Emissions Reduction Fund, visit the Clean Energy Regulator’s website.

posted 16 August 2017

New plantation forestry method now available

A new Emissions Reduction Fund (ERF) method for commercial plantation forestry is now available. Eligible participants are now able to apply to the Clean Energy Regulator to register an Emissions Reduction Fund project under the method.

The method credits abatement by storing carbon from the atmosphere in trees. This is done by establishing one or more new plantation forests, or converting short-rotation plantations to long-rotation plantations. Existing ERF projects under a current method, where one or more plantation forests have been established, may be able to apply to transfer to the plantations method.

The Carbon Credits (Carbon Farming Initiative) Rule 2015 has been amended to support the operation of the plantation forestry method.

posted 3 July 2017

The Carbon Market Institute’s Carbon Marketplace launched

The Carbon Market Institute’s newly launched Carbon Marketplace provides an online directory to connect carbon credit sellers and purchasers, as well as outlining the range of co-benefits Australian carbon projects are delivering.

Emissions Reduction Fund participants can use the portal to connect with potential buyers for their credits as well as explore other projects they might wish to purchase credits from.

Project owners with carbon credits on offer can register their details with the Marketplace, which offers purchasers the opportunity to contact project owners to buy carbon credits.

The directory also lists organisations across Australia operating in the climate change and business sector – from project developers and service providers to legal and technology providers.

The Carbon Market Institute has invited businesses and individuals in the climate change and business sectors to add their details to the directory and be part of the network.

The Carbon Neutral Program in the Department of the Environment and Energy has supported the Carbon Market Institute in developing the Carbon Marketplace.

posted 27 June 2017

Public consultation on the Landfill Gas method crediting period extension review

The Emissions Reduction Assurance Committee has commenced a review to consider whether to extend the crediting period for the Carbon Credits (Carbon Farming Initiative—Landfill Gas) Methodology Determination 2015 (the landfill gas method). Crediting period extension reviews are one of the Committee’s functions under the Carbon Credits (Carbon Farming Initiative) Act 2011.

The crediting period is the time over which an Emissions Reduction Fund project may receive Australian carbon credit units for undertaking emissions reduction activities. The current crediting period for projects under the landfill gas method is seven years. When performing this review the Committee will consider whether activities covered by the landfill gas method continue to deliver abatement that is unlikely to occur in the ordinary course of events.

To inform the review, the Committee is conducting public consultation to seek feedback on whether projects covered by the method would continue to result in carbon abatement that is unlikely to occur in the ordinary course of events if the crediting period were to be extended. For further information on the public consultation process and instructions on how to make a submission, please visit the review’s webpage on the Department of the Environment and Energy’s website.

The Committee will provide advice on the outcomes of the review to the Minister. If the Committee advises the crediting period should be extended, the Minister may seek to vary the method to extend the crediting period of eligible projects.

Submissions are due by the close of public consultation, on 11 July 2017.

posted 21 April 2017

CER announces fifth ERF auction results

The Clean Energy Regulator has announced the results of the fifth ERF auction. The Emissions Reduction Fund has now secured 189 million tonnes of abatement through 387 contracts.

The Clean Energy Regulator has awarded new contracts for 11.25 million tonnes of abatement under 31 Carbon Abatement Contracts for a total value of $133 million.

The majority of bids at the fifth auction represented value for money, with 84.1 percent of the volume of abatement offered below the benchmark price accepted. Abatement was purchased at an average price of $11.82 per tonne. Across all auctions the average price has remained steady at $11.83.

A total of $2.2 billion has now been committed under the Emissions Reduction Fund, with more than $300 million available for future purchasing.

A summary of the fifth Emissions Reduction Fund auction results are available on Clean Energy Regulator’s auction results page.

posted 28 March 2017

Climate Change Review Discussion Paper Released

The Federal Government has released a Discussion Paper as part of its review of climate change policies.

The Discussion Paper seeks views from business and the community on the opportunities and challenges of reducing emissions in each sector of the economy, and the implications for policy. This includes the role and operation of the Emissions Reduction Fund and its safeguard mechanism.

The Discussion Paper follows the Government’s commitment to review its climate change policies when it set Australia’s target to reduce emissions by 26 to 28 per cent below 2005 levels by 2030. Terms of reference for the review were released in December 2016.

The Government invites submissions on the Discussion Paper by 5 May 2017.

Information on how to make a submission is available at the Department of the Environment and Energy’s website:

posted 11 January 2017

Fifth Emissions Reduction Fund Auction Announced

The Clean Energy Regulator has announced that the fifth Emissions Reduction Fund auction will be held on 5-6 April 2017. Guidelines for the auction are available below:

More than $400 million remains available for registered projects to secure a carbon abatement contract.

Key dates are summarised in the table below.

Information to be published Third auction dates
Project registration application deadline 21 February 2017 (Midnight AEDT)
Auction qualification application deadline 7 Mach 2017 (Midnight AEDT)
Auction registration application deadline 29 March 2017 (Midnight AEDT)
Closing time for declaration of eligible projects 29 March 2017 (5pm AEDT)
Auction Window 9am 5 April 2017 to 5pm 6 April 2017 (AEST)
Results released, authorised bidder notified and average price per tonne of abatement published 13 April 2017

posted 16 December 2016

Public consultation period due to close for two savanna fire management methods

Two draft savanna fire management methods, are open for public consultation until 19 December 2016. The Department invites comments on the draft methods before the consultation periods closes.

Public consultation period due to close for the draft Carbon Credits (Carbon Farming Initiative) Amendment Rule 2016 (No.1)

Have your say on the draft Carbon Credits (Carbon Farming Initiative) Amendment Rule 2016 (No.1) and its Explanatory Statement until 19 December 2016.

The proposed amendments to the rule are primarily associated with the draft method that credits the storage of carbon in savannas however, there are also new draft provisions that extend to all ERF sequestration projects.

The proposed provisions would require all sequestration project proponents, new and existing, to provide a plan for their project’s permanence at the first offsets report after the 8th and 24th year of a sequestration project’s crediting period.  This includes providing an explanation of the steps undertaken, and intended to be undertaken, to ensure carbon remains sequestered in the project area for the permanence period for the project.

FullCAM Guidelines Updates

The Department has updated the Full Carbon Accounting Model (FullCAM) software.

Following the updates to FullCAM, the Department will also update the FullCAM Guidelines for the following five Emissions Reduction Fund vegetation methods:

These updates will provide greater clarity on how to use FullCAM, including clearer descriptions of FullCAM scenarios, selecting tree species, regimes and adding events in the Environmental/Mallee Plantings Guidelines. Check the links above for the new FullCAM Guidelines in the coming days.

And finally, the Department of Environment and Energy wishes you a very happy festive season

The Department of Environment and Energy will be closed for business from 5:00 pm AEDT on Friday, 23 December 2016 and will reopen for business as usual at 9:00 am AEDT on Tuesday, 3 January 2017.

The Department wishes you all the best for the festive season.

posted 14 December 2016

Coal mine waste gas variation

The Government has varied the Carbon Credits (Carbon Farming Initiative—Coal Mine Waste Gas) Methodology Determination 2015

The original coal mine waste gas method credited emissions reductions during coal mining by combusting methane:

  • in flares
  • in a generator to produce electricity.

The variation expands crediting to flameless oxidation devices that treat methane.

Flameless oxidation is a process that can convert ventilation air methane (very low concentration methane) into carbon dioxide. This helps to reduce Australia’s emissions because carbon dioxide is a less potent greenhouse gas than methane.

The changes will provide projects with the potential to unlock substantial new sources of abatement. Ventilation air methane emissions account for about 60 per cent of fugitive emissions from Australian underground coal mines.

Other changes include amendments to the method’s abatement calculations. These:

  • allow crediting for emissions reductions from both the flaring of coal mine waste gas and the generation of electricity in the same project
  • reflect the updated global warming potential of methane.

posted 2 December 2016

Release of the draft plantation forestry method and rule amendment for public consultation

The Department of the Environment and Energy has released a new draft plantation forestry method for public consultation. The Department invites comment on the draft method and proposed amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 until Friday December 30.

While submissions on the Plantation Forestry method close on 30 December 2016, the Emissions Reduction Assurance Committee has indicated it is willing to consider submissions received up until Monday 9 January 2017.

The draft method credits abatement by storing carbon from the atmosphere in trees. This is done by establishing one or more new plantation forests, or converting short-rotation plantations to long-rotation forests. These activities must result in eligible carbon abatement.

Existing ERF projects under a current method, where one or more plantation forests have been established, may be able to apply to transfer to the plantations method.

The Department also invites comments on proposed amendment to the Carbon Credits (Carbon Farming Initiative) Rule 2015.  The proposed amendments support the operation of the draft plantation forestry method.

More Information on the draft method and instructions on how to provide a submission are available on the Department’s website.

posted 30 November 2016

CER announces fourth Emission Reduction Fund auction results

The Clean Energy Regulator has announced the results of the fourth Emission Reduction Fund (ERF) auction. The Clean Energy Regulator has awarded contracts for 34.4 million tonnes of abatement at an average price of $10.69 per tonne.

Abatement committed at this auction will be delivered under 47 Carbon Abatement Contracts for a total value of $367 million.​

Across the four auctions, the Clean Energy Regulator has committed a total of $2.1 billion in contracts covering 397 projects, to deliver more than 178 million tonnes of abatement at an average price of $11.83 per tonne.

More than $440 million remains available for future abatement purchase through the Fund.

The Clean Energy Regulator has today stated their intention to hold a fifth ERF auction in April 2017 with particular details to be released in the first quarter of 2017.

A summary of the fourth ERF auction results is available on Clean Energy Regulator’s auction results page.

For more information on the opportunities for farmers and business through the ERF, please view our factsheet.

posted 11 November 2016

Savanna fire management draft methods – released for public consultation

Two draft savanna fire management methods are now open for public consultation:

  1. Carbon Credits (Carbon Farming Initiative—Savanna Fire Management—Sequestration and Emissions Avoidance) Methodology Determination 2017 (draft sequestration method);
  2. Carbon Credits (Carbon Farming Initiative—Savanna Fire Management—Emissions Avoidance) Methodology Determination 2017 (draft emissions avoidance method).

Both draft methods set out the rules for managing fire in Australia’s savannas and enable businesses to earn Australian Carbon Credit Units.

The draft sequestration method credits both carbon sequestered in dead organic matter and also avoided greenhouse gas emissions.

The draft emissions avoidance method only credits avoided emissions and will replace the existing Emissions Abatement through Savanna Fire Management method.

Comments are being sought on the draft methods until 19 December 2016. Further details on the two savanna fire management draft methods and how to make a submission are available on the Emissions Reduction Fund methods web page.

Draft amendments to the Carbon Credits (Carbon Farming) Amendment Rule 2015 open for public consultation

The Department of the Environment and Energy invites comment on the draft Carbon Credits (Carbon Farming Initiative) Amendment Rule 2016 (No.1) and it’s Explanatory Statement until 19 December 2016.

The proposed amendments are primarily associated with a draft method that credits the storage of carbon in savannas. These set out arrangements for project proponents wanting to transfer their project to the new savanna method, including:

  • information requirements relating to compliance with permanence obligations (the permanence obligation means the carbon stored by a project must be maintained for the chosen period, either 100 or 25 years)
  • definitions of permanence and the risk of reversal buffer in the Act
  • a requirement for savanna fire management projects to obtain the necessary permits under State and Territory bushfire legislation.

The proposed amendments also ensure consent from facility operators is maintained for eligible abatement activities where the facility operator changes. It also sets out who may act on behalf of a project proponent if they die or are incapacitated.

You are invited to submit comments on the draft amendment Rule to emissions-reduction-submissions@environment.gov.au

Eligible interest holder consent update from the Clean Energy Regulator

Eligible interest holder consent information on the Clean Energy Regulator’s website has been updated.

Area based projects must provide eligible interest holder consent when registering a project. Sequestration projects wishing to vary their project area must also provide eligible interest holder consent from all those with a registered interest in the varied project area.

Participants with a contract to deliver Australian carbon credit units (ACCUs) to the Australian Government need to factor in the time needed to obtain these consents as it may impact their ability to meet their contracted obligations.

For more information see the Clean Energy Regulator’s website.

Overview of the Emissions Reduction Fund components available

The Emissions Reduction Fund schematic on the Clean Energy Regulator’s website explains the two components of the Emissions Reduction Fund:

  • running and reporting on an eligible project to earn ACCUs, and
  • bidding to sell ACCUs through a Carbon Abatement Contract.

posted 25 October 2016

Updated Land and Sea Transport method – new draft explanatory statement now open for public consultation

The Department of the Environment and Energy is seeking comments on a new exposure draft version of the Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2015.

The existing Land and Sea Transport method allows businesses to earn Australian Carbon Credit Units by reducing the emissions intensity of vehicles in the land and sea transport sectors, including by replacing existing vehicles, modifying existing vehicles (fuel switching), and changing operational practices.

The exposure draft, if made, would replace the existing Land and Sea Transport method and extend its scope to include mode shift from road to rail, as rail generally has a lower emissions intensity than road per unit of freight transported. The draft method also includes minor amendments which clarify requirements in the original Land and Sea Transport method, and adds vehicle hours as a service unit for mobile equipment (such as mine haulage trucks).

Comments can be submitted until Monday 21 November 2016. Further details on the Land and Sea Transport method draft explanatory statement and how to make a submission are available on the Emissions Reduction Fund methods web page.

posted 31 August 2016

Fourth Emissions Reduction Fund Auction Announced

The Clean Energy Regulator will hold the fourth Emissions Reduction Fund auction on 16-17 November 2016. Guidelines for the fourth auction are published on the Clean Energy Regulator’s website.

Key dates are summarised in the table below.

Information to be published

Third auction dates

Closing time for receipt of project registrations applications

4 October 2016 (midnight AEDT)

Closing time for receipt of auction qualification applications

19 October 2016 (midnight AEDT)

Closing time for receipt of auction registration applications

09 November 2016 (midnight AEST)

Auction window

9am 16 November 2016 to
5pm 17 November 2016 (AEDT)

Each participant and authorised bidder notified of auction results.
Average price per tonne of abatement announced.

24 November 2016

Public consultation: Future purchasing for the Emissions Reduction Fund

The Clean Energy Regulator is exploring an alternative process to purchase low cost abatement in the future and have released a market sounding paper for consultation.

The Clean Energy Regulator invites written submissions from interested parties on the proposal to open an alternative purchasing process of a ‘direct abatement offer’ under the Emissions Reduction Fund. Submissions should be sent electronically, preferably in Microsoft Word or other text-based formats, and address the questions outlined in the ‘Issues for consultation’ section of the paper.

Submissions can be forwarded to: CER-Consultations@cleanenergyregulator.gov.au

Comments can be submitted until 14 October 2016.

posted 4 August 2016

Public consultation on the Draft Variation to the Beef Cattle Herd Management Method

The Department of the Environment and Energy is seeking comments on a variation to the Carbon Credits (Carbon Farming Initiative—Beef Cattle Herd Management) Methodology Determination 2015.

The beef cattle herd management method credits emissions reductions from pasture-fed beef cattle. Cattle managers can reduce emissions through approved activities such as targeted feeding supplementation, improved feed quality and improved weaning rates, managing the herd age and installing fencing to control herd movements. These activities can reduce emissions while beef production is maintained or increased.

The proposed variation implements several operational changes, including revisions to:

  • cater for mergers and acquisitions when complete historical data for a herd is unavailable;
  • address the complexity with the project boundary and increase transparency of cattle numbers and movements between herds; and
  • defines the circumstances under which a herd registered for GST can be defined as a business operation

Comments can be submitted until 15 August 2016.

posted 2 August 2016

Public consultation on the Draft Variation to the Coal Mine Waste Gas Method

The Department of the Environment and Energy is seeking comments on a variation to the Carbon Credits (Carbon Farming Initiative—Coal Mine Waste Gas) Methodology Determination 2015.

The coal mine waste gas method credits emissions reductions during coal mining achieved by combusting methane:

  • in flares; and/or
  • in a generator to produce electricity.

The proposed variation expands the coverage of the existing method by recognising emission reductions delivered through the use of ventilation air methane oxidation devices.

Ventilation air methane oxidation is a process that converts ventilation air methane (very low concentration methane) into carbon dioxide. This helps to reduce Australia’s national emissions because carbon dioxide is a less potent greenhouse gas than methane. Many of these ventilation air methane oxidation devices are also able to produce electricity.

The proposed changes will provide projects with the potential to unlock substantial new sources of abatement. In 2012, ventilation air methane emissions accounted for up to 60 per cent (approximately 12.7 million tonnes) of fugitive emissions from Australian underground coal mines.

Other proposed changes include amendments to abatement calculations covered by the method. These include revisions to:

  • reflect the updated global warming potential of methane
  • clarify the calculations for quantifying abatement for projects that displace electricity with electricity generated from coal mine waste gas.
  • allow crediting for emissions reductions from both the flaring of coal mine waste gas and the generation of electricity in the same project.

Comments can be submitted until 29 August 2016.

Savanna Fire Management – Upgrade to SavBAT 2.1 Online Tool

SavBAT 2.1 is the online tool used to calculate the net emissions abatement for ERF projects registered under the method, ‘Emissions Abatement through Savanna Fire Management’ 2015.

SavBAT 2.1 originally required users to manually search and entre the most up-to-date Global Warming Potential (GWP) values. During the week starting 4 July 2016, the relevant GWP values will be automatically included in SavBAT 2.1.

After this upgrade, users will no longer be required to manually enter the GWP values and SavBAT 2.1 will be automatically updated when needed.

posted 29 April 2016

Facilities Method Variation

The Government has made variations to the Carbon Credits (Carbon Farming Initiative—Facilities) Methodology Determination 2015 to improve the workability and integrity of the method. Key changes are:

  • The baseline period now covers the four years prior to application and any subsequent years before project commencement. This ensures baseline data is more robust.
  • Application requirements have been adjusted to allow baseline data to be submitted up until 31 October after the end of the baseline period.
  • Emissions-intensive electricity generators may now undertake minor maintenance activities without affecting abatement calculations.
  • Clarifications have been made to ensure production variables have been used or produced at a facility during the whole baseline period. The process for combining multiple output variables into a single production variable has also been clarified.
  • The definition of ‘major changes’ now better reflects the original policy intent regarding facility eligibility.
  • Changes have been made to clarify that facilities cannot earn credits during the baseline period, and cannot earn credits before they commence abatement activities at the facility.

The Facilities method can be used by facilities which are already reporting under the National Greenhouse and Energy Reporting (NGER) Scheme. The method uses data already reported under the NGER scheme to determine a baseline of emissions per unit of output (emissions intensity). Credits are then awarded to participating facilities that reduce their emissions intensity below the baseline level.

The Government’s legislative changes also include minor amendments to three other methods as follows:

  • Two numerical values for soil pH are added to the Estimating Sequestration of Carbon in Soil Using Default Values method, which were omitted during the making of the instrument.
  • A correction is made to the High Efficiency Commercial Appliances method, by replacing the word ‘less’ with ‘more’ to accurately reflect the original policy intent.
  • The variation clarifies that in addition to licensed electricians, other authorised persons, such as lineworkers, may supervise lighting upgrades under the Commercial and Public Lighting method where appropriate. It also clarifies the need for control equipment to be directly connected to lamps listed in Schedule 3 for that Schedule to be applicable.

More information about the Facilities method variation

ERF Factsheet – Opportunities and Results

The Department of the Environment has released a new factsheet which provides an overview of opportunities available to business, farmers, land owners and others to help reduce Australia’s emissions.

The factsheet also provides a summary of results achieved to date including project numbers and contracted abatement.

New ERF Video – Opportunities to Participate

A new video showing the Emissions Reductions Fund in action in rural Western Australia is available on the Department’s YouTube channel.

The video showcases how companies can partner with farmers to plant trees to reduce greenhouse gas emissions and earn Australian carbon credit units through Emissions Reduction Fund projects. The tree planting projects showcased in the video uses the Reforestation by Environmental or Mallee Plantings – FullCAM method.

Revenue earned by selling those carbon credits can help diversify farmers’ income streams. The project may provide other benefits such as reduced erosion and cover for sheep to graze amongst the plantings.

The Emissions Reduction Fund offers a range of opportunities for businesses, local councils, State governments and land managers to reduce their greenhouse gas emissions associated with agriculture, energy consumption, waste, transport and industrial processes.

More than 600 projects are registered with the Clean Energy Regulator with over 275 of these projects securing carbon abatement contracts to deliver 92.8 million tonnes of abatement at an average price of $13.12.

posted 11 April 2016

New Method Variation – Human-Induced Regeneration of a Permanent Even-Aged Native Forest

A variation has been made to the Carbon Credits (Carbon Farming Initiative) (Human-Induced Regeneration of a Permanent Even-Aged Native Forest—1.1) Methodology Determination 2013.

The variation to the Human-Induced Regeneration method replaces the Reforestation Modelling Tool (RMT) that estimates carbon abatement in the regenerating forest with the Full Carbon Accounting Model (FullCAM).

FullCAM more accurately reflects tree growth and the management and disturbance events that occur in HIR projects. FullCAM is also the model used by Australia’s National Greenhouse Gas Inventory for international greenhouse gas reporting obligations.

Following public consultation, other key changes to the method include:

  • A clearer definition of eligible management activities for a Human-Induced Regeneration project area.
  • Removal of the requirement to model baseline carbon stocks.
  • The ability to add new project areas at different times.
  • Adding a provision for some project activities to be undertaken on conservation land where there are opportunities for additional carbon abatement.
  • Improved clarification of accounting for years of net negative abatement, such as when a large fire occurs.

Projects registered under existing regeneration methods, for the Carbon Credits (Carbon Farming Initiative) (Human Induced Regeneration of a Permanent Even-Aged Native Forest) Methodology Determination 20131 and the Carbon Credits (Carbon Farming Initiative) (Native Forest from Managed Regrowth) Methodology Determination 2013, can transfer to the improved Human-Induced Regeneration method variation, provided they have already submitted at least one offset report to the Clean Energy Regulator.

Importantly, this variation (under Section 126 of the Carbon Credits (Carbon Farming Initiative) Act 2011) applies to all projects registered under the original 2013 Human-Induced Regeneration method that have not yet commenced their crediting period – the period over which emissions reductions activities are eligible to generate Australian Carbon Credit Units (ACCUs).

Further information on how to apply for a project under the method variation is available on the Clean Energy Regulator’s website.

More information about the Human-Induced Regeneration method variation

posted 9 March 2016

Draft Method for Community Buildings released for public consultation

The determination would apply to projects that reduce energy consumption in community buildings, including public buildings, private galleries and museums, schools, hospitals, aged care facilities, common areas of residential apartment complexes and serviced apartment complexes.

The draft method is technology neutral and allows for a broad range of energy efficiency activities to be undertaken. It calculates emissions reductions using a simple measured comparison of whole-of-building energy consumption before and after implementing energy efficiency upgrade activities.

Comments can be submitted until 5 April 2016.

posted 4 March 2016

Clean Energy Regulator – Latest News on Third Auction

The Department of the Environment would like to draw attention to the Clean Energy Regulator’s news alert regarding key dates for the third auction as summarised in the table below.

For more information about this update, please visit the Clean Energy Regulator’s website.

posted 11 February 2016

New Organic Waste Method Released

A new organic waste diversion method which may be used by local councils, retailers, charities, hospitality businesses, manufacturers, waste processors or composting facilities has been released.

The Source Separated Organic Waste method enables organisations to reduce their emissions by separating organic waste from other waste types and diverting it away from landfill to eligible alternative treatments. For example, local councils could collect food or garden waste from households by introducing a new separate organic waste bin. The material collected from these bins could be sent to a facility that turns the waste into compost or destroys the potent greenhouse gases generated by controlled decomposition of the waste in a biodigester.

Commercial organisations, such as supermarkets or restaurants, could introduce new bins for collection of food waste previously sent to landfill. The method also enables charities which collect and distribute surplus food for charitable purposes, to be credited for the abatement generated from new activities which divert food from landfill.

Organisations that produce other types of organic waste, including textile waste, wood and wood waste, sludge produced by food manufacture and other industries, disposable nappies and rubber and leather wastes, may also be eligible to use this method.

posted 11 February 2016

The High Efficiency Commercial Appliances Method – Efficiency Factor Document Published

The High Efficiency Commercial Appliances method requires the use of default efficiency factors to determine whether individual appliances are eligible and to calculate associated emissions reductions. These efficiency factors have been published in the Efficiency Factor Document which is now available on the High Efficiency Commercial Appliances method.

This method applies to projects that install high efficiency commercial appliances (air conditioners, chillers, refrigerated display cabinets and close control air conditioners) in commercial operations, with or without replacing existing appliances. A project could involve installing new appliances to replace or supplement existing appliances, or simply to service a new facility or function.

posted 9 February 2016

Human-Induced Regeneration of a Permanent Even-Aged Native Forest method variation – released for public consultation

The Department of the Environment is seeking comments on a variation to the Carbon Credits (Carbon Farming Initiative) (Human-Induced Regeneration of a Permanent Even-Aged Native Forest-1.1) Methodology Determination 2013.

A draft Variation of the method was published in September 2015. The primary purpose of the Variation was to amend the requirement that carbon stocks and fire emissions be modelled using the Full Carbon Accounting Model (FullCAM) rather than the Reforestation Modelling Tool (RMT). Other changes included:

  • Streamlining the eligibility requirements to remove the requirement to model baseline carbon stock; and
  • Simplifying the initial carbon deduction in the method equations

The Variation has been revised significantly since the previous exposure draft. Key changes include:

  • Clarifying arrangements for new project area, transferring projects and transferring project area;
  • Carrying forward negative abatement from one reporting period to the next to avoid crediting re-establishment of carbon stocks after a reversal;
  • Restructuring the Determination to match the format of more recent Emissions Reduction Fund methods; and
  • A range of changes throughout to strengthen and clarify existing provisions.

Comment and feedback is also being sought on the impacts (positive or otherwise) of including a limit on the proportion of a property that could be included in a regeneration project. The intention of a limit would be to ensure that a range of different land uses and vegetation types remain represented in the landscape.

Comments can be submitted until 23rd February 2016.

posted 9 December 2015

Facilities Method Variation – release for public consultation

A draft Variation of the Facilities Method Determination has been released for a 14 day public consultation period between 8 – 22 December 2015.

posted 8 December 2015

New Energy Efficiency Method for High Efficiency Commercial Appliances now available

This new method expands opportunities for energy efficiency activities to projects that install high efficiency appliances in commercial operations. The types of appliances covered by the method are refrigerated display cabinets, air conditioners, close control air conditioners and chillers.

Participants who could use this method include owners, operators or tenants of commercial and industrial buildings that use these types of appliances, manufacturers or suppliers of these products, and other aggregators.

posted 3 November 2015

2015-16 Priority activities

The Minister for the Environment has determined the 2015-16 priority activities for method scoping and potential development under the Emissions Reduction Fund, following consultation with Technical Working Groups, the public and the Emissions Reduction Assurance Committee.

The priorities are determined to ensure that activities offer the greatest opportunity for uptake and genuine abatement. The prioritisation is an annual process and provides a 12 month forward work plan for method scoping and development.

posted 3 November 2015

New Energy Efficiency Method for Refrigeration and Ventilation Fans

A new energy efficiency method is now available under the Emissions Reduction Fund. The Refrigeration and Ventilation Fans method supports projects that reduce electricity consumption by fans servicing refrigeration systems and commercial building ventilation systems.

To encourage participation, it uses readily available fan test data and other factors to provide simpler calculations of emissions reductions. The method covers two distinct activities:

  • installation of highly efficient fans instead of fans with market average performance that are typically installed
  • upgrading small fans with inefficient motors to run more efficiently.

Proponents who could use this method include owners, operators or tenants of commercial and industrial buildings, bodies corporate of residential apartments, local and state governments, fan manufacturers and suppliers, and other aggregators.

Refrigeration and Ventilation Fans) Methodology Determination 2015

posted 16 October 2015

Aggregation agreement education materials

The Department has produced some new materials covering the risks, benefits and obligations involved in joining an ‘aggregated’ Emissions Reduction Fund (ERF) project.

Aggregated ERF projects have multiple project sites which could be owned by more than one person. There can be many benefits to participating in the ERF through an aggregated project.

  • An aggregated project is a good way to bring together smaller amounts of emissions reductions into a project that can meet the ERF auction minimum bid size (2000 tCO2-e pa on average).
  • Aggregation can be done by individual ‘aggregators’ or organisations. Aggregators can be agents, project developers or holding companies and they provide a range of services to support ERF participation.
  • When site owners aggregate, they can benefit from the technical and project management expertise of an aggregator to avoid bearing individual project costs, like audits.

Participating in an aggregated ERF project is a significant business decision. It is important to understand what is involved and have this understanding documented in an ‘aggregation agreement’.

To help participants understand the kind of considerations likely to go into developing an aggregation agreement, the Department has produced further guidance material.

posted 13 October 2015

Draft method for Source Separated Organic Waste released for public consultation

The Source Separated Organic Waste draft method has been released for public consultation. This draft method could benefit local councils, retailers, composting facilities or charities that divert organic waste from going to landfill. For example, local councils could collect food waste from households by introducing a new separate rubbish bin. The waste collected from these bins could be sent to a facility that turns the waste into compost or destroys the potent greenhouse gases in the waste by placing it in a biodigestor. Charities could collect surplus food, which would otherwise be thrown away, and distribute the food for charitable purposes.

Comments are being sought on the draft method until 3 November 2015. Information on making a submission is available from the Department of the Environment’s website.

posted 1 October 2015

Beef Cattle Herd Management Method Approved

The Emissions Reduction Fund has a new land sector method to credit emissions reductions from pasture-fed beef cattle. Crediting is based on how many emissions are cut through efficiency gains while beef production is maintained or increased.

The beef cattle herd management method gives cattle producers the flexibility to adopt new or improved practices suited to their production systems. Examples of these practices include using high-quality feed and managing the breeding herd to ensure calves are born when pasture is at its best.

The method has been developed in collaboration with representatives from industry, in particular Meat and Livestock Australia and the Australian Agricultural Company.

posted 22 September 2015

Updates to the Human-Induced Regeneration of a Permanent Even-Aged Native Forest Method

On 18 September 2015, the draft Human-Induced Regeneration of a Permanent Even-Aged Native Forest-1.1 Methodology Variation 2015 was released for public consultation for a period of 14 days. The Variation seeks to amend the

Carbon Credits (Carbon Farming Initiative-Human-Induced Regeneration of a Permanent Even-Aged Native Forest 1.1) Methodology Determination 2013.

The proposed Variation would require carbon stocks and fire emissions to be modelled using the Full Carbon Accounting Model (FullCAM) rather than the Reforestation Modelling Tool (RMT). It would also remove the modelling requirements for project eligibility, and replace them with a mandatory requirement for satellite imagery to demonstrate an absence of forest cover in each year of the baseline period.

Public comments on the Variation are welcomed until COB 2 October 2015. Further information about the Variation and how to submit any comments.

posted 11 September 2015

Safeguard Mechanism Public Consultation

The Emissions Reduction Fund has three elements: crediting, purchasing and safeguarding emissions reductions. The Department is currently seeking comment on the legislative instruments that detail the design of the third element, the safeguard mechanism.

The safeguard mechanism will ensure that emissions reductions purchased by the Government are not offset by significant increases in emissions above business-as-usual levels elsewhere in the economy.

To make a submission please visit the Emissions Reduction Fund Safeguard Mechanism.

posted 11 September 2015

Reminder: 1 Week Left to Register Projects Ahead of the Second Auction

Emissions Reduction Fund project applications received by the Clean Energy Regulator after 18 September 2015 will not be eligible to participate in the November auction.

To register a project, visit the client portal or apply to participate section of the Clean Energy Regulator website.

posted 11 September 2015

Webinar: Emissions Reduction Fund Auctions – Understanding the Basics

To prepare for the second Emissions Reduction Fund auction, the Clean Energy Regulator will host a webinar covering the basic principles of the auction and contracting process. The webinar will be held on 17 September 2015 from 1pm to 2pm. Register to participate in the webinar or visit the Clean Energy Regulator website.

posted 1 September 2015

Facilities Method released

Under the facilities method, project proponents will be able to measure emissions reductions from facilities that already report their emissions under the National Greenhouse and Energy Reporting Scheme (NGERS).

The method has the potential to unlock abatement from some of Australia’s largest companies, such as aluminium smelters, petrochemical refineries and power stations.

The method works by using a facility’s production data and previously reported emissions data to establish a baseline using the emissions intensity of production. Credits are issued when the facility reduces the emissions intensity of its production to be below the baseline level.

Projects registered under the facilities method will be able to receive credits for emissions reductions from eligible NGER facilities for a seven year crediting period. The method has been designed to help project developers to design more innovative projects and ensure that emissions reductions are real and additional to business as usual.

posted 27 August 2015

Date Set for Second Emissions Reduction Fund Auction

The Clean Energy Regulator has announced that it will hold the second Emissions Reduction Fund auction for carbon abatement contracts on 4 and 5 November 2015.

This is the second in a series of opportunities for businesses across different sections of the economy to undertake emissions reduction activities and put in a bid for their reductions into an auction. Applications for new projects that wish to enter the auction are required to be submitted in full by 18 September 2015.

The auction guidelines are available from the Clean Energy Regulator’s website.

posted 27 August 2015

New Oil and Gas Fugitives Method

The Oil and Gas Fugitives method can be applied to projects that reduce fugitive emissions from venting at oil and natural gas extraction, production, transport and processing facilities. These emissions happen when gas escapes from pressurised equipment due to leaks or other unintended releases, as well as gas that is vented as part of oil or gas process-related activities.

The method aims to reduce emissions by installing and operating equipment to capture and re-route process venting emissions or fugitive leak emissions—which would otherwise have been released to the atmosphere—to a new or existing flare device.

The method has been developed in consultation with industry experts and demonstrates the Australian Government’s commitment to expanding opportunities to reduce emissions.

posted 12 August 2015

New Soil Carbon Method

A new method that offers a lower-cost path for soil carbon projects in cropping, grazing and mixed farming systems is now available for use. The method provides landholders with default values to estimate sequestration of carbon in soil, reducing the cost of calculating abatement.

Landholders can undertake up to three different management activities aimed at increasing carbon inputs to soil or reducing the amount of carbon released from soil. For example, activities could include converting land under crops to pasture, retaining crop residue, and sustainable intensification—such as optimising fertiliser, lime, introducing irrigation, or pasture renovation.

The benefits associated with improving soil carbon levels could include higher crop yields, better pasture, reduced erosion and overall soil health.

posted 12 August 2015

Updates to National Greenhouse and Energy Reporting (NGER) Scheme

People running Emissions Reduction Fund projects are being urged to familiarise themselves with the recent updates to the NGER scheme, which may affect their abatement calculations.

Many Emissions Reduction Fund methods require project proponents to use up-to-date NGER values whenever they calculate their abatement, and project proponents are reminded of the recent amendments to the NGER scheme that took effect on 1 July 2015. An important aspect of these amendments is that Global Warming Potentials (GWPs) used to convert raw gases into carbon dioxide equivalent values have been revised: the GWP for methane increases from 21 to 25, and the GWP for nitrous oxide decreases from 310 to 298. Emissions Reduction Fund project proponents are encouraged to check that they are using the most current version of NGERs.

The NGER scheme provides a number of parameters—such as emissions factors and GWPs—that are used, among other things, for the calculation and verification of emissions reduction from different activities. The NGER scheme was introduced in 2007 to provide data and accounting in relation to greenhouse gas emissions and energy consumption and production, supporting international emissions reporting obligations and informing a wide range of domestic policy instruments.

posted 12 August 2015

Public Consultation on the Draft Variation to the Industrial Electricity and Fuel Efficiency Method

The Department of the Environment is inviting members of the community and industry to provide feedback on a draft variation to the Carbon Credits (Carbon Farming Initiative—Industrial Electricity and Fuel Efficiency) Methodology Determination 2015 (the IEFE method).

The draft variation would ensure the IEFE method covers any projects that involve biomass derived energy in a manner that is consistent with the Renewable Energy Target Scheme. It would also add two decay coefficients to the existing seven in the method to ensure project proponents can calculate decay factors in all circumstances, including where they choose to delay the start of their crediting period. Decay factors are used in the IEFE method to reflect the decreased accuracy associated with modelled emissions levels relative to measured fuel use, as well as to reflect equipment degradation over time.

The public consultation process is open for submissions until 19 August 2015. Details of the submissions process for the draft variation are available here.

posted 12 August 2015

Amendment to Carbon Farming Initiative (CFI) Legislative Rule

On 1 August 2015, the Government made the Carbon Credits (Carbon Farming Initiative) Amendment Rule 2015 (No. 1) (amendment Rule) and the Carbon Credits (Carbon Farming Initiative) Amendment Regulation 2015 (No. 1) (amendment Regulation).

The amendment Rule builds on the existing Rule and details minor administrative procedures required under the Emissions Reduction Fund. These include the variation of declarations and project areas, revocation of declarations, restructuring of offset projects and relinquishment requirements. The amendment Regulation ensures the Principal Regulations reflect the amended CFI Act and Rules.

Information about the amendment Rule can be found on the ‘Legislation’ page of our website and further information about the consultation undertaken for the amendment Rule can be found here. The compiled Rule will be registered with the Federal Register of Legislative Instruments (FRLI). For more information, see the Department of the Environment website here.

posted 20 July 2015

Transition of Carbon Farming Initiative methods to the Emissions Reduction Fund

Following public consultation, 10 Carbon Farming Initiative methods transitioned to the Emissions Reduction Fund on 1 July 2015. These methods have been updated to ensure they are consistent with the Emissions Reduction Fund legislation, easy to use and streamlined.

The remaining 16 CFI methods have been superseded and were revoked on 1 July 2015.

There is no reduction in the scope of activities eligible under the Emissions Reduction Fund as a result of the transition process: an increasing range of methods are now available to capture emissions reduction opportunities across the economy.

posted 6 July 2015

Commercial and Public Lighting method released

The Commercial and Public Lighting method allows businesses and local councils to reduce emissions by upgrading lighting systems. The method supports projects in a broad range of building types, including offices, shopping centres, hospitals and schools. Local councils could also use the method to upgrade their street lights, traffic lights or lighting for public spaces.

Applications for projects using this method may be made to the Clean Energy Regulator.

posted 19 June 2015

Draft energy efficiency method open for consultation

The High Efficiency Fan Installations draft method covers projects that reduce emissions by installing highly efficient fans that use less electricity than fans of average efficiency. The draft method applies to fans in refrigeration systems, such as refrigerated cool rooms; or ventilation fans in commercial and industrial buildings, such as those found in underground car parks and the common areas of residential buildings.

Comments are being sought on the draft method until 9 July 2015.

posted 12 June 2015

New methods released

Landholders and cotton growers will be interested in two new methods released for use under the Emissions Reduction Fund.

The irrigated cotton method aims to reduce emissions by improving the efficiency of synthetic nitrogen fertiliser use in irrigated cotton production. The method provides cotton growers with flexibility to select a broad range of management actions to achieve emissions reductions.

The reforestation and afforestation method allows for reforestation of cleared land and afforestation on land where no forests previously existed in order to store carbon, reducing carbon in the atmosphere.

posted 12 June 2015

CER releases fact sheets on aggregation and legal right

With requests being made for more information on aggregation and legal right, the Clean Energy Regulator has released fact sheets to offer some simple guidance.

posted 12 June 2015

ASIC updates regulatory guidance

The Australian Securities and Investments Commission has updated Regulatory Guide 236, ‘Do I need an AFSL to participate in carbon markets’ following changes to the structure and regulation of carbon markets in Australia.

The updated guidance provides technical information for carbon market participants – in particular, carbon abatement project developers and aggregators – to assist them to operate their businesses in compliance with the financial services laws.

Any person considering entering into an aggregated arrangement under the Emissions Reduction Fund should obtain their own independent legal and financial advice with reference to their own circumstance.

posted 12 June 2015

Transition of Carbon Farming Initiative methods to the Emissions Reduction Fund

Consultation is under way on the transition of nine Carbon Farming Initiative methods into the Emissions Reduction Fund. The transitioning methods will be updated to ensure that they are consistent with the Emissions Reduction Fund legislation, easy to use and streamlined.

As part of this transition process, 17 superseded Carbon Farming Initiative methods are proposed to be revoked. It is intended that there will be no reduction in the scope of activities eligible under the Emissions Reduction Fund as a result of the proposed transition process.

posted 23 April 2015

First auction results

The Clean Energy Regulator has awarded contracts to the value of $660 million following the first Emissions Reduction Fund auction. The successful contractors have committed to deliver over 47 million tonnes of abatement, with an average price of $13.95 per tonne of abatement.

The 107 carbon abatement contracts were awarded to 43 contractors covering 144 projects. The majority applied under sequestration methods and landfill and alternative waste treatment methods.

For an overview see the auction results fact sheet and for more information visit the Clean Energy Regulator’s auction results page.

posted 26 March 2015

New methods available

Since the March edition, five Emissions Reduction Fund methods were made providing additional opportunities for energy efficiency, wastewater, savanna burning and avoided deforestation projects.

  • The Avoided deforestation method estimates emissions reductions achieved by not clearing land that would otherwise have been cleared.
  • The Aggregated small energy users method reduces emissions created from energy consumption by small energy users such as households or small businesses.
  • The Savanna fire management method aims to reduce the incidence and extent of larger, higher intensity, late dry season fires in northern savannas by burning in the early dry season.
  • The Industrial electricity and fuel efficiency method could benefit owners or operators of (usually large-scale) energy intensive equipment.
  • The Wastewater method could benefit operators of facilities which treat domestic, commercial or industrial wastewater using a deep open anaerobic lagoon.

Applications or variations for emissions reduction projects using these methods can be made to the Clean Energy Regulator.

For more information, please call 1300 553 542 or email enquiries@cleanenergyregulator.gov.au

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