Land and sea transport

Closed 13 Feb 2015

Opened 13 Feb 2015

Published Responses

View submitted responses where consent has been given to publish the response.

Overview

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

Finalised method determination

Methodology Determination made. The Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2015 was made on 13 February 2015

Project applications to implement the Methodology Determination may be made to the Clean Energy Regulator.

Status including Emissions Reduction Assurance Committee (ERAC) advice

Method Determination not made.

The Emissions Reduction Assurance Committee has advised the Minister for the Environment and Energy that the draft Land and Sea Transport method is not suitable to be made into a determination at this time, as it does not meet the offsets integrity standards.

The ERAC's advice to the Minister is published here, in accordance with paragraph 106(11)(C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

About this method

The Land and Sea Transport Determination provides for crediting emissions reductions achieved through a reduction in the emissions intensity of transportation (i.e. emissions per unit of transportation service).

The Land and Sea Transport Determination supports a broad range of activities to reduce emissions intensity within the land and sea transport sectors, including replacing existing vehicles, modifying existing vehicles, changing energy sources (fuel switching) or mix of energy sources, and changing operational practices.

Background

The Aviation and Land and Sea Transport draft Determinations were originally developed as one overarching draft Transport Determination that would cover emissions reductions across the range of transport modes including light and heavy vehicles, air, rail, sea and mobile equipment.

During the public consultation for the Transport Determination, stakeholders were asked to provide feedback on whether the draft Transport Determination would be improved by splitting it by mode. Based on the responses received through this process it was decided to split the draft Transport Determination into separate Land and Sea Transport and Aviation Determinations.

Mode shift

In 2016 the Department of the Environment and Energy, in consultation with a group of technical experts from industry, developed a proposal to add a mode shift activity to the existing Land and Sea Transport method. The new activity would have credited abatement generated by shifting certain freight from road to rail. A draft method determination was put out for public consultation in October and November 2016. The Emissions Reduction Assurance Committee (ERAC) reviewed the proposal in July 2017 and made a recommendation to the Minister for the Environment and Energy not to make the method because of the risk that abatement would occur in the ordinary course of events.

The ERAC's advice to the Minister is published here, in accordance with paragraph 106(11)(C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

The legislation specifies that the Minister must not make a determination if the ERAC advises that a method does not meet the offsets integrity standards.

Who could benefit?

This method could benefit owners and operators of existing vehicles (including cars, trucks, buses, trains, ships and mobile equipment) as well as other aggregators (such as vehicle suppliers) who are interested in improving the emissions intensity of vehicle fleets.

How does it work?

The method provides participants with a broad range of options to reduce emissions from their vehicles by undertaking activities such as replacing existing vehicles with more efficient ones, increasing the use of bio-fuels, installing low rolling resistance tyres or optimising vehicle load scheduling.

Emissions reductions are calculated by comparing the emissions intensity of a group of vehicles or individual vehicles before and after implementing activities to reduce emissions.

Eligibility

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

  • The project must involve one or more of the following activities:
    • replacing vehicles
    • modifying existing vehicles
    • changing energy sources (fuels and electricity) or the mix of energy sources used by vehicles, or
    • changing operational practices in relation to vehicles.
  • Three years of historical fuel use and service data (such as passengers or weight carried and/or distance travelled) must be available for the group of vehicles or individual vehicles included in the project.
  • Emissions reduction activities undertaken for the project must not have commenced prior to registering the project.
  • Where activities could be supported under other government programmes, participants have the choice to receive funding under those programmes or the Emissions Reduction Fund.

Monitoring, reporting and auditing

It's important to keep project records because you will need to submit regular reports on your project, including reporting on your emissions reductions. This includes records of fuel use and service data used to calculate the emission intensity of vehicle groups or individual vehicles before and after implementing project activities.

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

Development of this method

Emissions Reduction Assurance Committee (ERAC) advice

The ERAC's advice to the Minister regarding the Determination is published here, in accordance with Section 106(11) (C) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

Public consultation

A draft method determination for Transport was released for public comment. Based on the responses received through this process it was decided to split the draft Transport Determination into separate Land and Sea Transport and Aviation Determinations.

Consultation documents and submissions received are available on the Land and Sea Transport method page.

Public consultation

Note: A draft method determination that is open for public comment should not be relied upon for planning an ERF project. Draft method determinations may be modified following public consultation and are not final until made by the Minister for the Environment.

Land and sea transport update — 2016 consultation

The updated Land and Sea Transport method was open for public consultation from Tuesday 25 October to Monday 21 November 2016.

The existing Land and Sea Transport method enables businesses to earn Australian Carbon Credit Units by reducing the emissions intensity of vehicles in the land and sea transport sectors, including by replacing vehicles, modifying vehicles (fuel switching), and changing operational practices.

The updated Land and Sea Transport method would replace the existing method and extend its scope to mode shift activities. Eligible mode shift activities involve transporting certain freight by rail instead of road. Rail transportation is generally less emissions intensive than road transportation per unit of freight transported.

The draft updated method also includes minor amendments which clarify eligibility requirements in the original Land and Sea Transport method and adds vehicle hours as a service unit for mobile equipment (such as mine haulage trucks).

Draft determination and supporting documents

Note: A draft method determination that is open for public comment should not be relied upon for planning an ERF project. Draft method determinations may be modified following public consultation and are not final until made by the Minister for the Environment and Energy.

Audiences

  • Emissions Reduction Fund

Interests

  • Climate Change
  • Emissions Reduction Fund