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

Subscribe to get the latest Emissions Reduction Fund news

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 included projects 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 the Clean
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 Regulations to 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 on ComLaw.
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 (9 February), Perth (10 February), Hobart
(16 February), Melbourne (17 February), Bendigo (18 February) and Sydney (23 February). 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 or use 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 than14.5 million 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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can subscribe here.
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.