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5. Glossary

TermMeaning
Australian carbon credit unit (ACCU)

One Australian carbon credit unit represents one tonne of verified carbon dioxide equivalent abatement. ACCUs are created from eligible offsets projects and issued by the Clean Energy Regulator in accordance with section 147 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act).

Transactions of ACCUs occur through the Australian National Registry of Emissions Units (ANREU).

Australian National Registry of Emissions Units (ANREU)The registry in which all transactions of Australian carbon credit units takes place. A seller must have an ANREU account to participate in the Emissions Reduction Fund.
BaselineThe baseline is the reference point against which an entity's emissions or electricity generation can be measured. A power station which generates renewable energy in excess of their baseline can earn large-scale generation certificates under the Renewable Energy (Electricity) Regulations 2001. An entity with obligations under the safeguard mechanism must keep its net emissions at or below its baseline.
Cal pricesThis is the forward trade price for large-scale generation certificates traded for the calendar year it is referring to. For example, Cal24 is the calendar year 2024.
Carbon abatementCarbon abatement refers to a reduction in atmospheric carbon dioxide through emissions avoidance or carbon sequestration.
Certificate spot priceCertificate spot price refers to the secondary market price for small-scale technology certificates, large-scale generation certificates and ACCUs.
Climate ActiveClimate Active is a unique partnership between the Australian Government and Australian businesses that enables voluntary climate action. Climate Active certifies businesses that have credibly reached a state of carbon neutrality by measuring, reducing and offsetting their carbon emissions against the requirements of the Climate Active Carbon Neutral Standard. Certification is available for organisations (in relation to business operations), products and services, buildings, events and precincts.
Emissions avoidanceEmissions avoidance refers to projects that generate abatement by reducing or avoiding greenhouse gas emissions which would otherwise have occurred. For example, savanna fire management may reduce carbon dioxide emissions by reducing the frequency and extent of late dry season fires. Capturing and flaring landfill gases converts methane to carbon dioxide, which has lower global warming potential than methane.
Emissions Reduction Fund (ERF)The Emissions Reduction Fund is a scheme where the Government purchases the lowest cost abatement (in the form of Australian carbon credit units) from a wide range of sources, providing an incentive to businesses, households and landowners to proactively reduce their emissions.
Greenhouse gas emissions

Greenhouse gas emissions are gases which trap heat in the atmosphere, such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O).

Greenhouse gas emissions are measured as tonnes of carbon dioxide equivalence (CO2-e). This means that the amount of a greenhouse gas that a business emits is measured as an equivalent amount of carbon dioxide, which has a global warming potential of one.

GreenPowerGreenPower is the only voluntary government accredited program for renewable energy in Australia. A joint initiative of the governments of the Australian Capital Territory, New South Wales, South Australia, Victoria and Tasmania, GreenPower guarantees that any GreenPower-accredited energy sold by Australian energy retailers is renewably sourced.
National Greenhouse and Energy Reporting Scheme (NGER)The National Greenhouse and Energy Reporting scheme is a single, national framework for corporations to report on greenhouse gas emissions, energy use and energy production.
Optional delivery contractAn optional delivery contract is an agreement that gives proponents the right, but not the obligation, to sell up to a nominated quantity of ACCUs to the Commonwealth at a fixed price. Under optional delivery contracts, the Clean Energy Regulator is essentially underpinning the project with project proponents retaining the flexibility to sell ACCUs on the secondary market.
Project proponentA project proponent is an individual, a collective of individuals or an organisation with the legal responsibility for running a project under the ERF. This means they will hold the legal right to the project and will be issued any ACCUs created from project activities.
Safeguard SurrenderSafeguard surrender is the statutory obligation to surrender carbon units above an entity's baseline.
Secondary market

The secondary market consists of financial institutions, traders, agents and installers, parties that are involved in the buying and selling of renewable energy certificates or ACCUs between private entities. For example, the price of an ACCU on the secondary market is the price at which private entities agree to trade ACCUs.

While the Clean Energy Regulator does not intervene in the secondary market, the Clean Energy Regulator's Renewable Energy Certificate Registry facilitates transactions between parties.

SequestrationSequestration refers to the capture and storage of carbon dioxide. It typically refers to the absorption of carbon by ecosystems, including oceans, soils and vegetation.
Small-scale technology certificateA renewable energy certificate created by the owner of a small-scale system, or their installer, for the electricity generated or displaced by that system. While the number of certificates that can be created per system is based on several factors, including its geographical location, installation date, and other factors, one certificate is typically equal to one megawatt hour of eligible renewable electricity.

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