Carbon pricing mechanism repeal
The Clean Energy Act 2011 has been repealed. This abolishes the carbon pricing mechanism from 1 July 2014. Liable entities must still meet their carbon price obligations for the 2013-14 financial year.
Content on the Clean Energy Regulator website will be progressively updated to reflect these changes. More information can be found on the carbon pricing mechanism repeal page.
Investing in the Carbon Farming Initiative is an important business decision. Before investing, you should undertake research so you can make an informed assessment of the potential benefits and risks of participating in the Carbon Farming Initiative.
There are two types of projects that you can implement under the Carbon Farming Initiative – emissions avoidance and sequestration. All methodologies are either emissions avoidance or sequestration project types. All projects must use an approved methodology, also called a methodology determination. Methodology determinations set out the rules for implementing your project.
Before you can conduct a Carbon Farming Initiative project, you need to become a recognised offsets entity. A person who is granted recognition as an offsets entity has been assessed as a fit and proper person. This assessment is a requirement of the Carbon Credits (Carbon Farming Initiative) Act 2011 and is one of the safeguards designed to prevent non-compliance, deceptive or unfair conduct and fraud.
Participation is open to individuals, sole traders, businesses, local, state and territory government bodies and trusts.
When you apply to become a recognised offsets entity, we recommend that you nominate to open an account in the Australian National Registry of Emissions Units (ANREU). The ANREU is a secure electronic system designed to accurately track the location and ownership of Australian carbon credit units (ACCUs) issued under the Carbon Farming Initiative. Any credits you earn under the Carbon Farming Initiative will be issued into your ANREU account.
You will need to apply to have your project declared as an eligible offsets project. When applying for a project to be declared as an eligible offsets project, you will need to demonstrate that the project meets all of the eligibility criteria set out in the methodology determination you have chosen as well as the Carbon Credits (Carbon Farming Initiative) Act 2011.
Once your project is declared an eligible offsets project, you must carry out your project, estimate abatement, and comply with the monitoring, record-keeping and reporting requirements according to the rules and instructions set out in the methodology determination for your project. You must also comply with the general reporting and notification requirements in the Carbon Credits (Carbon Farming Initiative) Act 2011.
Your obligations include collecting, maintaining and retaining accurate and complete records, undertaking quality assurance measures, providing specific information in an offsets report for the project and submitting the offsets report to the Clean Energy Regulator.
To apply for ACCUs, you submit an application for a Certificate of Entitlement, along with a project offsets report and an audit report. The audit report must be completed by a registered National Greenhouse and Energy Auditor. The Clean Energy Regulator will assess applications for a Certificate of Entitlement to ensure the abatement can be verified and the unit entitlement figure is correct. Successful applicants will be issued with a Certificate of Entitlement which advises of the number and type of Australian carbon credit units that the offsets project is entitled to receive for the reporting period. The Australian carbon credit units will be issued into your specified Australian National Registry of Emissions Units account.
The Clean Energy Regulator administers the Carbon Farming Initiative and the carbon pricing mechanism. At present, two carbon markets exist in Australia: the voluntary carbon market, which provides for participants who make voluntary commitments to offset carbon emissions; and the compliance market, where certain entities (liable entities) must surrender one eligible carbon unit for each tonne of carbon dioxide equivalent emissions that they have produced in that year. Liable entities can use ACCUs to meet their obligations under the carbon pricing mechanism until February 2015.
The Government has announced details on the repeal of the Clean Energy Act 2011. Further information on the repeal of the Clean Energy Act and the design of the proposed Emissions Reduction Fund is available on the Department of Environment’s website.
Any enquiries regarding the repeal of the carbon price should be referred to
firstname.lastname@example.org or 1800 057 590.