Who is liable under the carbon pricing mechanism?
Australia's largest carbon emitters are liable under the carbon pricing mechanism. This means the vast majority of Australian businesses have no direct obligation under the carbon pricing mechanism.
An entity will be a liable entity if it is:
Liable Entities Public Information Database (LEPID)
Under the Clean Energy Act 2011, the Clean Energy Regulator must keep a database known as the Liable Entities Public Information Database (LEPID). We include legal 'persons' in the LEPID if we have reasonable grounds to believe the person is, or is likely to be, a liable entity for the eligible financial year.
For more information, see the LEPID.
How do I know if I am a liable entity?
Liability for direct emitters is calculated annually on a facility basis. A facility is an activity or series of activities (including ancillary activities) that involves the production of greenhouse gas emissions, the production of energy or the consumption of energy and that:
Entities are liable as direct emitters if they operate facilities that exceed the threshold amount for covered 'scope 1' emissions, or are a large gas consuming facility. The threshold for covered scope 1 emissions is 25 000 tonnes of carbon dioxide equivalent (CO2-e) per year. For more information, see what emissions types are in and out?
If a facility emits the threshold amount or more, the entity responsible for the facility becomes liable for all its emissions covered under the carbon pricing mechanism.
Entities that supply natural gas and certain users of natural gas may also be liable.
Most liable entities are already reporting their emissions through the National Greenhouse and Energy Reporting scheme.