Proposed amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 for the transition of Emissions Reduction Fund projects between proponents in particular circumstances

Closed 28 Feb 2020

Opened 17 Jan 2020

Results Updated 4 Jun 2020

The Carbon Credits (Carbon Farming Initiative) Amendment (Variation of Project Proponents) Rule 2020 started on 3 June 2020.

The amendments enable transition of Emissions Reduction Fund projects to new project proponents, when the original proponent is unwilling or unable to continue with the project. This will allow projects to continue, and gives landowners or others the opportunity to take on this role.

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Overview

The climate change function transferred to our department from the Department of the Environment and Energy on 1 February 2020.

The Australian Government is considering amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to improve the flexibility for project proponents to be transferred between parties.

Under current legislative arrangements, where an ERF project's registered proponent ceases to be involved in the project without transferring the project to another party, the project must be revoked. This means no more crediting of abatement can occur from the project. From a policy perspective, if an existing project proponent is unwilling or unable to continue with a project and there are others (e.g. landholders) that are willing and able to continue the project activities, they should be able to do so.

The draft amendment is intended to improve the ability to transfer project proponents. It has been designed to ensure that relevant parties are informed and listed project proponents are consulted in the process of changing the project proponent. It also takes into account existing business models that carbon project developers and others may have established.

Draft amendments

Audiences

  • Emissions Reduction Fund

Interests

  • Climate Change
  • Emissions Reduction Fund
  • Emissions Reduction Fund legislation