DOMESTIC OFFSETS INTEGRITY COMMITTEE Reasons for Refusal to Endorse Methodology Proposal Reduction of emissions of methane through the application of a feed supplement to dairy cows The Domestic Offsets Integrity Committee (DOIC) advises that it has refused to endorse the methodology proposal for Reduction of emissions of methane through the application of a feed supplement to dairy cows (Ref: 2012LD027) because it does not satisfy the requirements for a methodology determination specified in Section 112 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act). The reasons for the DOIC’s decision to refuse to endorse the methodology proposal are set out in Tables 1 and 2 below. These reasons will also be published on the Department’s web site within 28 days of the decision in compliance with Section 112 (14A) of the Act. Table 1 – Requirements to be met for methodology proposal endorsement by the DOIC Section* Requirement Statement 112(3)(a) Complies with the offsets integrity standards See Table 2 below. 112(3)(b) Does not refer to a state or part of a state Complies. 112(3)(c) Complies with regulations made for the purpose of 106(4)(e) No regulations specified. 112(3)(d) Includes calculation of a baseline for a project. The methodology covers the whole dairy industry, which comprises five sectors with distinct feeding regimes. The methodology does not provide instructions to enable baselines to be set for each of these different sectors, which take account of the different amounts and types of feed that cows would receive in the absence of the CFI project. 112(3)(g) Applies methods specified under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) where appropriate. The methodology proposal does not provide for the estimation of fuel use in accordance with the NGER Act. * Section of the Carbon Credits (Carbon Farming Initiative) Act 2011 Table 2 – Offsets Integrity Standards Section* Requirement Statement 133(1)(a) Covered by the additionality test regulations (positive list). The methodology covers a broad range of food supplements, some of which are already in common use. 133(1)(b) Estimations of emissions reduction, sequestration and emissions are measurable and capable of being verified. Different feed additives have different emissions reduction potential. As the methodology does not specify which particular feed additives it covers, it is not possible to calculate project abatement. Beyond a certain level, feed additives can become toxic to cattle and ineffective in reducing emissions. The methodology does not take account of these effects. 133(1)(c) Methods specified in the methodology are not inconsistent with the methods set out in the National Inventory Report. There is insufficient information to determine whether the methods in the proposal are consistent with the methods in the National Inventory Report. 133(1)(d) The methodology is supported by relevant scientific results published in peer-reviewed literature. The methodology proposal does not take account of evidence of the different effects of different food additives on cows’ health and methane emissions. 133(1)(e) Net abatement is calculated after deducting the emissions generated as a result of carrying out the project. The greenhouse gas assessment boundary is incomplete. It does not include emissions from fuel use. 133(1)(f) Methodologies related to sequestration projects should provide for adjustments that take account of cyclical variations. The methodology does not need to provide for adjustments for cyclical variations because it is not related to a sequestration project. 133(1)(g) Estimates, projections or assumptions included in the methodology are conservative. The methodology proposal does not provide instructions for calculating the abatement from different feed additives that take account of the nutritional composition of cows’ existing diet. 133(1)(h) Applies methods specified under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) where appropriate. The methodology proposal does not provide for the estimation of fuel use in accordance with the NGER Act. The proposal does not account for differences in the gas assessment boundary for different types of feed additives. Additives such as fats/oils are bi-products that would be produced anyway and would not need to be included in the project boundary. Additives such as tannins or nitrates would be produced because of the project and would need to be included. * Section of the Carbon Credits (Carbon Farming Initiative) Act 2011