Facilities

Closed 17 Mar 2016

Opened 17 Mar 2016

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) Methodology (Facilities) Determination 2015 (the Method) was made on 24 August 2015 and amended on 17 March 2016.

About this method

The Carbon Credits (Carbon Farming Initiative) Methodology (Facilities) Determination 2015 enables a broad range of sectors to participate in the Emissions Reduction Fund.

The method encourages emissions reductions through a range of measures, and is not prescriptive about what these are or how they are undertaken. This allows project developers to apply the Determination to a wide variety of projects and encourages innovation in project design.

Who could benefit?

The method could benefit facilities that report under the National Greenhouse and Energy Reporting (NGER) Scheme. Projects may involve a broad range of activities that reduce emissions within facilities, potentially also providing benefits in the form of reduced energy costs and improved productivity.

How does it work?

The method enables participants to undertake a broad range of activities to reduce the emissions intensity of their facility. This provides flexibility for participants to determine the activities that are most appropriate for their facility. For example, activities could include replacing or modifying boilers, improving control systems and processes, upgrading turbines, reducing industrial process emissions, or installing low emissions-intensity electricity generation equipment.

The method uses NGER data to determine a baseline emissions intensity against which project abatement is calculated. Credits are then awarded to participating facilities that reduce their emissions intensity per unit of output below the baseline level. By using data already reported under the NGER Scheme, the method reduces the reporting burden for project participants.

Eligibility

The following requirements need to be met to ensure a project is eligible under this method:

  • Facilities must have submitted NGER data for the four consecutive reporting years immediately preceding the NGER reporting year in which the abatement project is declared eligible.
  • Facilities must not have undergone any major changes during the four years preceding the commencement of the project.
  • Facilities must produce at least one output. So shopping centres, storage warehouses or transport facilities would not be eligible, although they may be able to participate in the Emissions Reduction Fund under other methods.
  • Activities undertaken for the project must not have commenced operation before the project is registered.
  • Where activities could be supported under other specific government programmes, participants have the choice of receiving support for their activities either under the Emissions Reduction Fund or under other government programmes.
  • Activities for the project cannot be required by law.

Monitoring, reporting and auditing

It is important to keep project activity records because you will need to submit regular reports on your project, including reporting on your emissions reductions. This includes records of greenhouse gas emissions, energy production and energy consumption as required under the NGER Scheme, as well as records of the quantity and purity of the facility's outputs.

Projects must be audited by a registered greenhouse and energy (NGER) auditor. A list of registered auditors is available on the Clean Energy Regulator website.

Facilities Method periodic review

Review report

The Committee has completed a periodic review of the Method. The periodic review examined whether the Method continues to comply with the six offset integrity standards set out in section 133(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

Facilities Method review report (PDF - 211.98 KB)
Facilities Method review report (DOCX - 76.83 KB)

Consultation paper and supporting documents

The Committee undertook public consultation to inform its review and invited interested businesses, non-government organisations and individuals to make a submission. The public consultation period commenced on 11 June 2019 and ended on 12 July 2019. The Committee developed a consultation paper providing information on the method, the review process and areas of particular focus for the review.

Development of this method

Development of the original method

Status

The Carbon Credits (Carbon Farming Initiative) Methodology (Facilities) Determination 2015 (the Method) was made on 24 August 2015.

Public consultation — method

The public consultation for the draft Method is now closed. The following information remains available for reference:

Submissions received for Facilities (original version of the method)

The following non-confidential submissions were received through the public consultation process.

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.

ERAC - advice to the Minister regarding the Facilities method Determination (PDF - 1.16 MB)

Development of the variation

The Method was amended by the Carbon Credits (Carbon Farming Initiative—Facilities and minor Corrections) Methodology Variation 2016 (the Variation) on 18 March 2016.

About the variation

The Variation made the following changes to the Facilities determination:

  1. Amended the baseline period so that it covers the four years prior to application and any subsequent years before project commencement. This ensures that the baseline data is more robust.
  2. Amended the application requirements to give proponents sufficient time to submit their baseline data.
  3. Clarified the treatment of projects undertaken at emissions-intensive electricity generators. Emissions-intensive electricity generators may now undertake minor maintenance activities without affecting abatement calculations.
  4. Clarified that production variables need to have been used or produced at a facility during the whole baseline period.
  5. Clarified the process for combining multiple output variables into a single production variable.
  6. Amended the definitions of major changes to better reflect the original policy intent regarding facility eligibility.
  7. Clarified that facilities cannot earn credits during the baseline period, and cannot earn credits before they commence abatement activities at the facility.
  8. Made minor changes to correct minor technical errors in the method.

The Variation also made unrelated amendments to fix minor errors in the following methods:

  1. Carbon Credits (Carbon Farming Initiative—Estimating Sequestration of Carbon in Soil Using Default Values) Methodology Determination 2015
  2. Carbon Credits (Carbon Farming Initiative—High Efficiency Commercial Appliances) Methodology Determination 2015
  3. Carbon Credits (Carbon Farming Initiative—Commercial and Public Lighting) Methodology Determination 2015
Public consultation — proposed Variation to the method

The draft Carbon Credits (Carbon Farming Initiative—Facilities) Methodology Variation 2015 (the draft Variation) is closed. The following information remains available for reference:

Submissions received

The following non-confidential submissions were received through the proposed Variation public consultation process.

The ERAC's advice to the Minister regarding the Determination is published here, in accordance with Section 2016(11)(C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

Audiences

  • Emissions Reduction Fund

Interests

  • Climate Change
  • Emissions Reduction Fund