Are you looking to undertake activities to reduce emissions from at least one of the aircraft in your fleet?
Is the fuel used in your aircraft ‘taxable fuel’ as per the meaning provided for by the Fuel Tax Act 2006?
If you have answered yes to both of these questions, the aviation method
may be suitable for your business. Read on for eligibility and compliance details.
The aviation method sets out the rules for projects that reduce emissions by improving fuel efficiency and changing energy sources for aircraft used on domestic routes.
The method is activity neutral and provides flexibility for participants to determine what activities are most appropriate for their project. Activities that could be undertaken to reduce energy use by aircraft include:
Emissions intensity service units are used to calculate abatement with different service units used for the different phases of each aircraft's operation. These phases are cruise and descent, landing, taxi in, transit, taxi out and take off and climb. The use of service units allows the calculated abatement to account for increased or decreased aircraft usage.
Section 114 of the
Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act) allows for methods to be revised and varied. This is to ensure methods continue to operate as originally intended. Variations to methods are developed and drafted by the Department of the Environment and Energy. Information on
draft methods and method variations is available on the Department of the Environment and Energy’s website.
The Clean Energy Regulator recommends making yourself familiar with proposed method variations relevant to your project should they arise, and how any changes between the original method and the varied method may affect your project plan.
You must read and understand the method and other legislative requirements to conduct an aviation project and earn Australian carbon credit units (ACCUs). This includes:
Department of Environment information on the aviation method
A guide to the aviation method
The quick reference guide provides basic information about eligibility criteria and obligations that must be met to earn Australian carbon credit units (ACCUs) from an aviation project. It includes specific links to the relevant legislation but should not be viewed as an alternative to reading the full legislative requirements. More detailed information can also be found in the full method guide linked above.
Seven years – The crediting period is the period of time a project can apply to claim Australian carbon credit units.
Relevant section of the Act:
There are general eligibility requirements in the Act, which include:
Section 12 of the method also requires that you have energy and service data for the 12 months immediately before the start of the reporting period in which an aircraft is first included in the project.
Section 14 of the method also requires that specific information is included in a project application before the project can be considered eligible. You should ensure you refer to this section and provide all the required information in your application.
Relevant section of the Method:
A project involves implementing emissions reduction activities on at least one aircraft. The activities must fall into at least one of the following categories:
Examples of activities include:
A project only covers aircraft using 'taxable fuel'. This has the effect of excluding international flights and a number of domestic routes where they are an extension of international flights.
The method also excludes aircraft replacement or fleet renewal from being considered as a project in itself.
The project must use fuel which has emissions factors that can be calculated in accordance with the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (NGER Determination).
Relevant section of the NGER Determination
Abatement is calculated by comparing the total 'emissions intensity' of different phases of aircraft operation before and after the project activities take place. Using emissions intensity to calculate abatement allows emissions reductions to be credited when the level of service provided changes compared to previous periods.
Emissions intensity refers to the emissions that are produced per 'service unit'. Service units vary with each phase of operation and you need to choose one of service units set out in Schedule 1 of the method for each phase of operation. The relevant phases are:
For each aircraft you wish to include, you will need to identify the phases of aircraft operation that will be affected by the intended activities. Further detail on how to calculate emissions, emissions intensity and abatement, can be found in the method and in the aviation method equation flow chart.
In addition to the reporting requirements of the Act and the Rule,
Section 21 in the method sets out additional method-specific requirements that may be required for offset reports.
Relevant section of the Rule:
In addition to the
general monitoring requirements of the Act, projects must also meet specific monitoring requirements in
Sections 25–27 of the method. This includes the service unit and energy consumption data that needs to be collected and monitored for each aircraft at the level of phase and route.
The method sets out several options for collecting this data, including approaches that are used in the aviation industry to collect data for other purposes. If you are unable to monitor any of the specified parameters during a reporting period, Section 27 explains how you must estimate their value.
In addition to the record-keeping requirements of the Act and the Rule, projects must also meet the specific record-keeping requirements in section 24 of the method, including:
All projects receive an audit schedule when the project is declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the
audit information on our website.
Specialist skills will be required to carry out the project with the method. Examples of specialist skills include:
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