Eligibility for exemptions
Companies that carry out specified emissions-intensive trade-exposed activities are eligible for Renewable Energy Target exemption43.
An exemption is granted for activities that produce products for the global market, to ensure they are not disadvantaged in competition with overseas facilities that may not have the same obligations.
An exemption is determined based on activity production levels (for example, tonnes of metal from a metal production facility) for the two financial years prior to the exemption year. A legislated factor for the activity determines the exemption. From 2010 to 2014 activities received partial exemption. As of 2015, certain activities are fully exempt.
2016 FAST FACTS
A total of 188 exemption certificates were issued, totalling 41 137 443 megawatt hours.
Applications are assessed against the requirements of the Renewable Energy (Electricity) Act 2000. Applications for exemptions above a certain level must include an audit report. Successful applicants receive exemption certificates for the electricity (megawatt hours) they are exempt.
They provide the exemption certificates to the electricity retailer that supplies them with the electricity used for their emissions-intensive trade-exposed activity. The electricity retailer then uses these exemption certificates to reduce their reported electricity acquisitions under the Renewable Energy Target.
A total of 45 activities received exemption, as shown in graph 8. Aluminium smelting again accounted for most of the exemption.
Figures for graph 8 - Emissions-intensive trade-exposed activities in 2016
| Activity | MWh | Percentage |
|---|
| Aluminium smelting | 25,327,065 | 61.56% |
| Smelting zinc | 2,092,978 | 5.08% |
| Manufacture of newsprint | 1,375,117 | 3.34% |
| Aluminium refining | 1,315,737 | 3.19% |
| Packaging and industrial paper manufacturing | 1,083,852 | 2.63% |
| Range of other 40 activities | 9,942,694 | 24.20% |
| Total | 41,137,443 | 100.00% |
Footnotes