The Government's $2.5B Emissions Reduction Fund (ERF) is likely to pass the Upper House after Clive Palmer and his Senators agreed to support the ERF legislation. The ERF allows for the continuation of existing Carbon Farming Initiative (CFI) projects and will be expanded to cover activities such as Industrial Energy Efficiency, transport emissions reductions and more.
Under the ERF businesses will now be able to 'monetise' many energy efficiency projects that also lead to carbon reductions. Depending on the scale of reductions (and the price per tonne of carbon available via a reverse-auction), pay-back periods and business cases for projects may be significantly improved.
The Department of Environment currently has numerous ERF Methodologies out for public consultation. Projects need an approved Methodology to be able to monetise their carbon reductions, and an Industrial Energy Efficiency Methodology is due to be released soon.
We will keep you posted as the policy develops, in the meantime if you have any questions feel free to contact us directly.
Highlights of November 2013 Newsletter
The latest Energy Efficiency Opportunities (EEO) newsletter can now be accessed from the EEO website. Some key information includes the achievements that Linfox, the largest trucking and logistics corporation in the Asia Pacific, has obtained by participating in the EEO Program. The corporation’s commitment to cut 50 of its 2006/07 emissions by 2015 is certainly admirable.
EEO participants are also encouraged to visit the findings of ClimateWorks Australia’s research project, Tracking Progress Towards a Low Carbon Economy, to gain a snapshot of most promising opportunities across different sectors and industries.
The Department of Industry is also seeking feedback with regards to the new reporting template (Excel Spreadsheet) and requesting participants to accompany a draft version of the spreadsheet along with other documentation before final submission. See our earlier post for further information.
The new online portal, EEO Net, is scheduled to be fully operational by the end of November. Participants will be notified of the date and activation instructions will be emailed to the EEO contact person.
The 2013 National Conference organised by the Energy Efficiency Council will be held on the 3rd and 4th of December in Melbourne. For further information and special offers for EEO participants, please visit the EEC website here.
The Commonwealth Government is also seeking input from the EEO participants with regards to design of the Emissions Reduction Fund (ERF) for inclusion of potential options of low-cost abatement.
The Clean Energy Regulator is planning to hold a series of workshops in the first half of 2014 on the sequestration group of methodologies. For more information and registration, please visit the Regulator’s CFI events webpage.
The Regulator is also urging project proponents who are currently operating under the following schemes to request for transition into the Carbon Farming Initiative if they believe their project may be eligible:
- Commonwealth Government’s Greenhouse Friendly TM initiative;
- NSW Government’s Greenhouse Gas Reduction Scheme;
- ACT Government’s Greenhouse Gas Abatement Scheme;
- Verified Carbon Standard administered by the VCS Association
The Regulator published emissions numbers reported by liable entities last week. Liable entities are required to purchase and surrender enough eligible emissions units to match the emissions number by 3 February 2014.
In addition, according to the Regulator, 10% of the reporters failed to fulfill their reporting obligation by 31st of October versus the 12% non-compliance rate in the last reporting year.