Outcomes
The Carbon Credits (Carbon Farming Initiative-Carbon Capture and Storage) Methodology Determination 2021 (Carbon capture and storage method) came into effect on 1 October 2021.
The method credits emissions reductions from the capture and permanent storage of greenhouse gases in underground geological formations.
Read the Carbon capture and storage method and explanatory statement.
The Carbon Credits (Carbon Farming Initiative) Amendment (Carbon Capture and Storage Projects) Rule 2021 also came into effect on 1 October 2021.
The amendment makes specific arrangements for carbon capture and storage (CSS) projects covered by this method. These enable CCS projects to have an extended accounting period, and more time to defer the start of crediting periods.
Read the amendment rule and explanatory statement.
Emissions Reduction Assurance Committee (ERAC) advice
Overview
The Australian Government’s first Low Emissions Technology Statement – 2020 identified carbon capture and storage (CCS) as one of Australia’s priority low emissions technologies.
In late 2020, the Minister for Energy and Emissions Reduction tasked the Clean Energy Regulator with developing a CCS method under the Emissions Reduction Fund.
A CCS project captures greenhouse gas emissions that would otherwise have been released to the atmosphere. It transports them for injection into an underground geological formation for permanent storage.
The technology can underpin new low emissions industries such as hydrogen. It can also reduce emissions in hard to abate sectors such as cement production and steel manufacture.
Published responses
View submitted responses where consent has been given to publish the response.
Why we are consulting
The Emissions Reduction Assurance Committee is seeking feedback on a proposed new methodology determination under the Emissions Reduction Fund:
Carbon Credits (Carbon Farming Initiative—Carbon Capture and Storage) Methodology Determination 2021
The proposed method would enable projects that capture and permanently store greenhouse gases in underground geological formations to generate Australian carbon credit units.
The Minister for Energy and Emissions Reduction is required to consider a range of factors when deciding whether to make a new method. This includes whether an activity under a method could have any adverse social, environmental, or economic impacts. As such, feedback may cover adverse impacts that are likely to arise from carrying out a CCS project under the proposed new method. Information on the operation of the proposed CCS method is in the draft CCS Simple Method.
Our department is also seeking feedback on the amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to support the method.
Consultation documents
Draft Carbon Capture and Storage method [469KB PDF] [1MB DOCX]
Draft Carbon Capture and Storage Simple Method Guide [722KB PDF] [182KB DOCX]
Draft Carbon Credits (Carbon Farming Initiative) Amendment (Carbon Capture and Storage) Rule 2021 [240KB PDF] [118KB DOCX]
What happens next
This consultation has now closed.
The Clean Energy Regulator is considering any submissions provided by the due date.
You may review the published submissions here.
