Department of Environment Australian Governm : Fifth Emissions Reduction Fund Auction Announced

Latest updates

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 theCarbon Credits (Carbon Farming Initiative-Coal Mine Waste Gas) Methodology Determination 2015(link is external)

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 ERFprojects 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.

posted30 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(link is external).

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

posted11 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 [e-mail]

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(link is external).

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.

posted25 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.

posted31 August 2016

Fourth Emissions Reduction Fund Auction Announced

The Clean Energy Regulator will hold the fourth Emissions Reduction Fund auction(link is external) on 16-17 November 2016. Guidelines for the fourth auction(link is external) 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: [e-mail]

Comments can be submitted until 14 October 2016.

posted4 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(link is external).

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 can be defined as a business operation

Comments can be submitted until 15 August 2016.

posted2 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(link is external).

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.

posted29 April 2016

Facilities Method Variation

The Government has made variations to the Carbon Credits (Carbon Farming Initiative-Facilities) Methodology Determination 2015(link is external) 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(link is external).

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(link is external) 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.

posted11 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(link is external) 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(link is external).

More information about the Human-Induced Regeneration method variation

posted9 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.

posted4 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(link is external).

posted11 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(link is external) 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.

posted11 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.

posted9 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 23 February 2016.

Previous issues

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posted9 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.

posted8 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.

posted3 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.

posted3 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(link is external)

posted16 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.

posted13 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.

posted1 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.

posted22 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(link is external).

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.

posted11 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.

posted11 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(link is external) or apply to participate section(link is external) of the Clean Energy Regulator website.

posted11 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(link is external) or visit the Clean Energy Regulator website(link is external).

posted1 September 2015

Facilities Method released

Under the facilities method(link is external), 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.

posted27 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(link is external).

posted27 August 2015

New Oil and Gas Fugitives Method

The Oil and Gas Fugitives method(link is external) 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.

posted12 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.

posted12 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.

posted12 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.

posted12 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)(link is external) (amendment Rule) and the Carbon Credits (Carbon Farming Initiative) Amendment Regulation 2015 (No. 1)(link is external) (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.

posted20 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.

posted6 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.

posted19 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.

posted12 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.

posted12 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.

posted12 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.

posted12 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.

posted23 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(link is external) and for more information visit the Clean Energy Regulator's auction results(link is external) page.

posted26 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(link is external).

For more information, please call 1300 553 542 or email [e-mail]