The Clean Energy Regulator (CER) has commenced legal proceedings in the Federal Court against Emerging Energy Solutions Group Pty Ltd (Emerging Energy) and its former director.

The CER alleges that in contravention of the Australian National Registry of Emissions Units Act 2011 (ANREU Act), Emerging Energy allowed unauthorised persons access to its ANREU account. 

The CER is taking action to protect the integrity of Australia’s carbon markets for consumers and industry. We again remind participants using the ANREU, or other registries such as the Renewable Energy Certificate (REC) Registry, not to allow unauthorised persons to access CER systems. The CER will take enforcement action in response to such breaches.

 

Background

The ANREU is a secure electronic system that tracks the issuance and holdings of Australian carbon credit units (ACCUs) issued under the ACCU Scheme (formerly known as the Emissions Reduction Fund), and emission units issued under the Kyoto Protocol. Organisations and individuals are required to use the ANREU if they want to hold and trade units.

The ANREU is underpinned by the ANREU Act and Australian National Registry of Emissions Units Regulations 2011 (Regulations), which provide the legislative support for the administration of the system and ensures participation is consistent with Kyoto Protocol rules.

Under the ANREU Act and Regulations, the CER may only allow a person access to the ANREU if it is satisfied of their identity and that they pass the fit and proper person test. Identity and fit and proper person checks are undertaken for the intended holder of the ANREU account, and any persons nominated to access and operate the ANREU account as an authorised representative. This requirement is one of many features designed to reduce the risk of fraud and non-compliance.

ANREU account holders can allow as many persons with authorised access as they need to in order to run their businesses. However, ANREU account holders must maintain the security of usernames and passwords and must not allow any other person to gain unauthorised access to the ANREU. Failure to do so may constitute a breach of the ANREU Act and Regulations, attracting civil penalties of up to 10,000 penalty units per contravention (as at 1 July 2023, the value of one penalty unit is $313). 

The unauthorised sharing of login information may also result in an assessment of whether a person remains a fit and proper person for participation in CER administered schemes.

ANREU account holders can check or update who their authorised representatives are by logging in to the register.