Our compliance update keeps you informed of activities related to our compliance and enforcement priorities.
Australian Carbon Credit Unit (ACCU) Scheme
Following on from the recommendations made in the Independent Review of Australian Carbon Credit Units, the CER is implementing the recommendations related to Human-Induced Regeneration (HIR) projects.
Independent reviewer for HIR gateway checks
We engaged Associate Professor (Honorary) Cris Brack from the Australian National University as the independent reviewer of gateway checks for HIR projects. His first report was published on 15 December 2023. The first review analysed 25 projects and found that projects are successfully sequestering carbon and that ‘the independent audit reports and the CER’s assessment provided strong assurance that projects are being managed as per the legislative requirements, and that appropriate methods have been used by the proponents or their agents in classifying the carbon estimation areas (CEAs) and identifying changes in regeneration canopy cover.’
The next report is due in June 2024 and will summarise the outcomes of regeneration checks subject to the new gateway audit program.
Human-induced regeneration (HIR) gateway audits
As part of strengthening our approach to the assessment of HIR projects, in the second half of 2023, we engaged and paid for audits of 33 HIR projects that have submitted offsets reports that were also subject to a regeneration gateway check. Independent greenhouse and energy auditors undertake extensive verification to ensure projects are regenerating and progressing toward forest cover, including site visits where necessary.
Project proponents that provide high quality reports and evidence that demonstrate to us how regeneration is progressing can receive ACCUs prior to the audit’s conclusion. Of the 33 projects, 9 were able to have their ACCUs issued prior to the audit being undertaken as we were satisfied that carbon had been accumulated. For 20 of these projects, there was insufficient information and evidence in the original application to enable us to be satisfied that regeneration requirements had been met. Before ACCUs can be issued applications must contain sufficient information and evidence to demonstrate regeneration requirements have been met. As foreshadowed in the August 2023 HIR Gateway Audit Requirements guidance we will not issue ACCUs until we are satisfied that the project meets these requirements.
Audits initiated by us
Audits initiated by us are a key compliance tool to ensure the accuracy of ACCU claims under the ACCU Scheme. They are initiated and paid for by the Clean Energy Regulator. In addition to HIR gateway audits we initiated 14 additional ACCU audits in the second half of 2023.
Some of these were randomly selected, while others were focused on particular compliance issues based on our risk-based targeted approach. These compliance focuses included:
- ensuring vegetation fuel type maps for savanna fire management projects meet the method requirements, and
- provide assurance that claims for ACCUs for aggregated projects are accurate and complete across all sites.
Renewable Energy Target – Small-scale Renewable Energy Scheme (SRES)
With the introduction of the installer on-site verification process in SRES in 2022, we have continued to see improved compliance. With our automated risk and compliance tools, we have seen a 47% drop in the number of applications being flagged for install distance or installer frequency risks. When we examine those that have been flagged, we have seen a 116% increase in the number of applications that are assessed as compliant.
Installer facing criminal charges
We continue to show zero tolerance towards participants who are intentionally non-compliant. We are targeting those who attempt to benefit from the provision of false statements, particularly in relation to installer on-site attendance.
A South Australian CEC accredited solar PV installer is facing 62 criminal charges in the Adelaide Magistrates Court. These charges relate to the provision of false and misleading documents that claim the installer attended solar PV installations.
Solar PV installer declared ineligible to install solar systems under the SRES
On 5 February 2024 the CER declared CEC accredited installer David Coulthard ineligible to install solar PV systems under the SRES for 12 months. Any solar PV systems installed by Mr Coulthard during this period will not be eligible to receive STCs. All declarations are published on our website.
We took into account the nature of the offending and Mr Coulthard’s cooperation throughout the investigation in deciding that pursuing court action was not an appropriate response in this instance.
We continue to remind accredited installers they must meet their on-site attendance obligations for the installation of small-scale solar PV systems. To be eligible for STCs the accredited installer must install or physically attend the site during job set up, mid-installation check-up and testing and commissioning. We will not tolerate those who are unwilling to do the right thing.
Completed Enforceable Undertaking – Bell Solar
Bell Solar has completed all obligations with its enforceable undertaking and is no longer subject to compliance action.
National Greenhouse and Energy Reporting (NGER) Scheme and Safeguard Mechanism
Ninety-nine per cent of NGER reports were submitted on time by the 31 October 2023 deadline. Thirteen reporters (1%) failed to report on time and all but 3 have since submitted their reports.
Moving forward, in accordance with our compliance priorities, we will publish the names of those who continue to submit late reports.
We are currently assessing 2022–23 NGER reports in line with our compliance priorities. This includes a review of the data reported for Safeguard facilities, and the oil and gas facilities identified in the 2022–23 audit program. Non-compliant reporters face compliance actions including compliance audits, enforceable undertakings, and penalty infringement notices.
The next NGER reports are due by 31 October 2024 and will include data used to calculate obligations and liabilities under the reformed Safeguard Mechanism. As this will be the first compliance deadline under the reformed Safeguard Mechanism, the CER will closely monitor the accuracy of NGER data that includes Safeguard facilities and Safeguard entities with emissions that exceed their baselines can expect an escalated compliance response if they do not meet the new Safeguard compliance deadline of 31 March 2025.