Buy-back of free carbon units

Christmas shutdown

Please note that due to a shutdown over the Christmas period, buy-back requests made after midday 19 December 2014 will unlikely result in payments being made until the week of 5 January 2015.

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The Clean Energy Act 2011 has been repealed.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.

If you hold free carbon units with a 2013-14 vintage, you can request a buy-back of the units at any time before 2 February 2015 and the Clean Energy Regulator will cancel the units in exchange for payment of $24.15 per unit.

A request is made using a ‘buy-back transaction’ in the Australian National Registry of Emissions Units (ANREU), and payments will be processed by the Clean Energy Regulator within five business days of receiving your nominated bank details.

Free carbon units have been issued through the Jobs and Competitiveness Program (JCP) and the Energy Security Fund (ESF) industry assistance programs. Both the JCP and ESF programs have been discontinued from 1 July 2014 as part of the repeal of the carbon pricing mechanism.

All carbon units must be used by 2 February 2015. Carbon units not surrendered or bought back will be cancelled by the Clean Energy Regulator after this date.

You can surrender free carbon units to meet your liability under the carbon pricing mechanism, trade them in the carbon market, or sell them back to the Clean Energy Regulator for a buy-back amount of $24.15 per unit. However, a liable entity that sells units back to the Clean Energy Regulator will still need to meet their carbon price liability by acquiring and surrendering sufficient eligible emissions units by the final surrender date of 2 February 2015.

How to make a request for buy-back

To sell back units to the Clean Energy Regulator you will need to hold 2013-14 vintage carbon units in an ANREU account. To initiate a buy-back transaction in your ANREU account, select a ‘buy-back transaction’ and the number of units, review the buy-back amount on the screen then press ‘submit’. A PIN is emailed to your ‘approver’ who can then approve the transaction in ANREU.

You must provide your bank account details to us for the payment to be processed. If you have not submitted bank account details previously, it is recommended that you complete the bank details form for ANREU account holders before a transaction is submitted.

You can find step-by-step instructions for making a request for buy-back through ANREU in the Management of emissions units user guide.

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