Emissions Reduction Fund Update

February 2015

Welcome to the first edition of the Emissions Reduction Fund update for 2015.

In this edition

First three Emissions Reduction Fund determinations
Treasury consultation on proposed exemptions to the Corporations Act 2001 and Corporations Regulations 2001 for Emissions Reduction Fund participants
Consolidated Act available
Emissions Reduction Fund information sessions
Savanna fire management method
Reforestation and afforestation method
CFI project update
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Further information

First three Emissions Reduction Fund determinations

The first three methods under the Emissions Reduction Fund have now been made as determinations. These methods cover energy efficiency in commercial buildings, landfill gas and alternative waste treatment (AWT).

The commercial buildings method reduces emissions by improving the energy efficiency of commercial buildings using star ratings and other tools from the National Australian Built Environment Rating System (NABERS) to calculate emissions reductions.

The alternative waste treatment method supports projects that treat mixed solid waste at an AWT facility rather than disposing of it in landfill. The method covers construction of new AWT facilities and expansion of existing facilities, and provides continued emissions reduction opportunities for AWT facilities that participated in the Carbon Farming Initiative (CFI).

The landfill gas method builds on CFI methods. These methods includedprojects to reduce emissions by combusting landfill gas, for example using a device such as a flare. Combusting the landfill gas destroys methane, one of the most damaging greenhouse gases. If you combust methane, you drastically reduce the global warming effect that methane causes when it escapes from landfills as waste decomposes.

Applications for emissions reduction projects using these methods can now be made to theClean Energy Regulator.

For more information about the methods, see our website.

Treasury consultation on proposed exemptions to the Corporations Act 2001 and Corporations Regulations 2001 for Emissions Reduction Fund participants

To make it easy to participate in the Emissions Reduction Fund, the Government is proposing to simplify the application of the Corporations Regulationsto ordinary business activity expected to occur under the Fund.

The proposed changes would reduce unnecessary administrative burdens on Fund participants, while maintaining appropriate financial and contractual standards on Fund transactions. Under them, most aggregators and carbon service providers would not be required to hold an Australian Financial Services Licence or provide a Product Disclosure Statement to retail clients.

The Treasury is currently seeking public comment on the proposed exemptions. Consultation is open until 13 February 2015. For more information, please refer to the Treasury’s website.

New Act available

The amended Carbon Credits (Carbon Farming Initiative) Act 2011 is now available onComLaw.

Emissions Reduction Fund information sessions

The Carbon Market Institute is hosting information sessions on the Emissions Reduction Fund during February. The sessions will be held in Adelaide (9February), Perth (10February), Hobart (16February), Melbourne (17February), Bendigo (18February) and Sydney (23February). Each session will include an overview of how to participate in the Emissions Reduction Fund. An expert panel of speakers from industry, the Department of the Environment, the Clean Energy Regulator and AusIndustry will be available to answer your questions. To register for a session, visit the Carbon Market Institute website.

Savanna fire management method

In December 2014, the Department released for public consultation the Carbon Credits (Emissions Abatement through Savanna Fire Management) Methodology Determination 2015. This proposed method covers the activities included in the current CFI method. It also includes updates for high and low rainfall savanna underpinned by new research on decay of fine fuel which results in higher abatement estimates.Under this method, project proponents can complete geospatial and other calculations manually oruse a new version of the Savanna Burning Abatement Tool (SavBAT2) which simplifies the reporting and record-keeping requirements.

The Department is now finalising the draft determination for consideration by the Emissions Reduction Assurance Committee.

Reforestation and afforestation method

In December 2014 the Department released for public consultation the Carbon Credits (Reforestation and Afforestation) Methodology Determination 2015. This proposed method covers the activities covered by similar CFI methods. There are three amendments:

1.improving reportable biomass estimates when using permanent sample plot assessments

2.ways to use a default root-to-shoot ratio to estimate below-ground biomass, and

3.simplifying reporting and record-keeping requirements.

The Department is now finalising the draft determination for consideration by the Emissions Reduction Assurance Committee.

CFI projects update

The Clean Energy Regulator has now issued more than14.5million Australian carbon credit units under the Carbon Farming Initiative. These emissions reductions are equivalent to reducing emissions from four million cars in one calendar year.

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Further information

Read more about the Australian Government’s broader environmental policies at environment.gov.au.

Disclaimer

The information included in the publication remains in development and parties are advised not to initiate any projects based on the content of the newsletter. While the Commonwealth has made reasonable efforts to ensure the accuracy and correctness of the material at the time of publication, the Commonwealth does not guarantee, and accepts no liability whatsoever arising from or connected to, the accuracy, reliability, currency or completeness of this material.