Results updated 15 Jun 2021
The 2021 crediting period extension review
The Emissions Reduction Assurance Committee (the Committee) has completed the crediting period extension review of the Carbon Credits (Carbon Farming Initiative – Industrial Electricity and Fuel Efficiency) Methodology Determination 2015.
The Committee received 8 submissions during targeted stakeholder consultation in February, March and April 2021. As these submissions are confidential they will not be published.
The Committee found industry provided insufficient evidence to demonstrate extending the crediting period would continue to result in abatement unlikely to occur in the ordinary course of events.
Based on its findings, the Committee recommends the crediting period for the Industrial Electricity and Fuel Efficiency method should not be extended.
Next steps
The Clean Energy Regulator is preparing a variation to the Industrial Electricity and Fuel Efficiency method for public consultation. The variation will address issues identified in the Committee’s 2018 review of the method and through the Committee’s public consultation on the crediting period extension review.
Files:
- Read the Crediting period extension review report (571.4 KB PDF) (1.4MB DOCX)
- Read the Committee’s advice to the Minister ( 550.9 KB PDF) (1.5 MB DOCX)
Links:
Published responses
Submissions received for Industrial Fuel and Energy Efficiency (original version of the method)
The following non-confidential submissions were received through the public consultation process
- Australian Aluminium Council (PDF)
- Bureau of Steel Manufacturers Australia (PDF) (DOCX)
- Outperformers Pty Ltd
- Rio Tinto
Overview
The climate change function transferred to our department from the Department of the Environment and Energy on 1 February 2020.
Finalised method determination
Method Determination made. The Carbon Credits (Carbon Farming Initiative—Industrial Electricity and Fuel Efficiency) Methodology Determination 2015 (the Method) was made on 25 March 2015 and amended on 11 September 2015.
About this method
The Carbon Credits (Carbon Farming Initiative—Industrial Electricity and Fuel Efficiency) Methodology Determination 2015 (the Method) covers a broad range of electricity and fuel efficiency activities including lighting upgrades, heating, ventilation and cooling system upgrades, boiler upgrades, and variable speed drive installation.
Development of this method
Development of the original method
Status
The method was made on 25 March 2015.
Emissions Reduction Assurance Committee (ERAC) advice
The ERAC's advice to the Minister regarding the suitability of the Determination to be made is published here, in accordance with Section 106(11) (C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.
Public consultation — method
The public consultation for the draft Method is now closed. The following information remains available for reference:
- Industrial Fuel and Energy Efficiency: draft method determination (PDF - 782.03 KB) | (DOCX - 464.04 KB)
- Industrial Fuel and Energy Efficiency: draft explanatory statement (PDF - 313.08 KB) | (DOCX - 128.04 KB)
Development of the variation
Status
The Method was amended by the Carbon Credits (Carbon Farming Initiative -Industrial Electricity and Fuel Efficiency) Methodology Variation 2015 (the Variation) on 11 September 2015.
About the variation
The Variation made the following changes to the Industrial Fuel and Energy Efficiency determination:
- Aligned the treatment of projects that combust biomass to produce energy, or use biomass-derived energy, with the Renewable Energy Target scheme.
- Inserted of two further decay coefficients in the Method to ensure proponents can calculate abatement in the event they decide to delay the start of their crediting period. Decay coefficients are used in the Method to reflect the decreased accuracy associated with modelled emissions levels relative to measured energy use, as well as to reflect equipment degradation over time.
Emissions Reduction Assurance Committee (ERAC) advice
The ERAC's advice to the Minister regarding the suitability of the Variation to be made is published here, in accordance with paragraph 114(8) (C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.
Public consultation — proposed Variation to the method
The public consultation for the draft Variation is now closed.
Submissions received
The following non-confidential submissions were received through the public consultation process.
