Results updated 17 December 2021
The Carbon Credits (Carbon Farming Initiative – Industrial and Commercial Emissions Reduction) Methodology Determination 2021 (ICER method) came into effect on 16 December 2021.
The ICER method credits reductions in energy and industrial process emissions at industrial and commercial facilities.
Read the method and explanatory statement.
The Carbon Credits (Carbon Farming Initiative Amendment (Industrial and Commercial Emissions Reduction Project) Rule 2021 also came into effect on 16 December 2021.
The amendment makes specific arrangements for projects covered by the ICER method, enabling them to defer the start of their crediting periods by up to 3 years.
Read the amendment rule and explanatory statement.
See the Emissions Reduction Assurance Committee (ERAC) advice to the Minister on our department’s website.
Published responses
View submitted responses where consent has been given to publish the response.
Overview
The Emissions Reduction Assurance Committee is seeking feedback on a proposed new methodology determination:
Carbon Credits (Carbon Farming Initiative–Industrial and Commercial Emissions Reduction) Methodology Determination 2021 (ICER).
The proposed ICER method would replace the Industrial Electricity and Fuel Efficiency (IEFE) method. It would credit reductions in energy and industrial process emissions at industrial and commercial facilities. It was developed in response to stakeholder feedback on the method.
Key changes in the proposed ICER method from the IEFE method include:
Introducing a project-specific additionality measure to ensure the method provides additional abatement that would not be likely to occur without the Emissions Reduction Fund
clarifying the scope of eligible project activities and including new activities
requiring the electricity emissions intensity factor used in abatement calculations to be the value current at the time of reporting
making the abatement calculations more flexible and usable for project proponents
removing sub-method 2 to reduce the size and complexity of the method
simplifying the terminology used in the method.
Existing IEFE projects would be able to move to this method if they meet the eligibility requirements or stay on the existing IEFE method. It is proposed the IEFE method will be revoked once the ICER method is made, as is usual practice, and the Clean Energy Regulator will work with project proponents on transitional arrangements where required.
Why we are consulting
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 might arise from carrying out a project under the proposed ICER method.
Our department is also seeking feedback on the amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to support the proposed ICER method. This would allow ICER projects 3 years to start their crediting period once they are registered.
Consultation documents
Draft Industrial and Commercial Emissions Reduction method [636KB PDF] [2.8MB DOCX]
Draft Industrial and Commercial Emissions Reduction simple method guide [894KB PDF] [192KB PDF]
Draft Carbon Credits (Carbon Farming Initiative) Amendment (Industrial and Commercial Emissions Reduction) Rule 2021 [628MB PDF] [111KB DOCX]
Next steps
The Clean Energy Regulator is responsible for Emissions Reduction Fund method development and will review feedback you provide on the proposed method determination.
What happens next
This consultation has now closed.
The Clean Energy Regulator and the Emissions Reduction Assurance Committee are considering any submissions provided by the due date.
