Overview
The Emissions Reduction Assurance Committee (ERAC) is seeking feedback on the following proposed changes to methods to generate Australian carbon credit units (ACCUs):
variation to the Carbon Credits (Carbon Farming Initiative– Industrial and Commercial Emissions Reduction) Methodology Determination 2015 (ICER method)
variation to the Carbon Credits (Carbon Farming Initiative– Facilities) Methodology Determination 2015 (Facilities method)
possible revocation of five energy efficiency methods.
Please note that the proposed Safeguard Mechanism reforms may have implications for the participation of Safeguard entities in the ICER and Facilities methods. More information on the proposed Safeguard Mechanism reforms is available here.
Industrial and commercial emissions reduction method & facilities method – variations
The proposed variation to the ICER and facilities methods will:
remove the replacement of lighting equipment (lamps and luminaries) as an eligible activity
amend the emissions intensity factor used in the abatement calculations to the value that is current at the time of reporting
allow updating of the measurement time interval as part of developing a new baseline emissions model (ICER method)
amend the requirements of the statement of activity intent to better align with the offsets integrity standards (Facilities method).
These changes are intended to encourage additional abatement while ensuring the methods credit genuine emissions reductions.
Combined energy efficiency methods – revocation
The energy efficiency methods proposed for revocation are:
Carbon Credits (Aggregated Small Energy Users) Methodology Determination 2015
Carbon Credits (Commercial Buildings) Methodology Determination 2015
Carbon Credits (High Efficiency Commercial Appliances) Methodology Determination 2015
Carbon Credits (Industrial Equipment Upgrades) Methodology Determination 2018
Carbon Credits (Refrigeration and Ventilation Fans) Methodology Determination 2015.
The methods have been in place for up to 7 years and have had no or limited uptake.
With the exception of the aggregated small energy users method, the methods each cover specific energy efficiency upgrade activities that will remain eligible activities under the ICER method. The ICER method provides an activity neutral framework that allows project proponents to undertake a range of activities to improve the energy efficiency of an industrial or commercial site in a single project, rather than multiple projects under separate methods.
The ERAC is seeking feedback to inform its decision on whether to recommend to the Minister that the five methods be revoked on the basis that their revocation would have limited impact on the opportunities for abatement from energy efficiency projects. The ERAC is seeking feedback on:
Market conditions or other changes that may increase the potential uptake of the five energy efficiency methods, and
The usability of the ICER method for energy efficiency projects.
Next steps
The ERAC will consider any submissions you provide by the due date. A single submission covering one or more of the methods under consideration is welcomed. Stakeholders do not need to comment on all methods under consideration.
