objective Abatement current industry share of the was twofold: Certificate practice. electricity Providers could sector to reduce undertake For example, benchmark projects. on the GHG under the carbon sequestration level of their Eligibility for the methodology, electricity sales as a four offset land for forestry with activities was activities must be proportion of the specified in their on the total state respective rules electricity and use (methodologies): Land’. demand. ‘Eligible of Any additional power sequestration is For the offsets deemed beyond component, a to a range of business-as-usual variety of develop different provided it is baseline and power undertaken in methodologies generation accordance with were employed the Carbon for abatement activities (in cost NSW and Sequestration projects. These interstate). Estimation were demand-side Methodology. developed by reduction policy makers. activities There was no actions to offset taken on the scope for the customer side submissions for new of an of electricity methodologies, meter (i.e., although rules gas the allowed for ‘demand side’). any policy changes to be large electricity made via For the users—for Ministerial penalty the sign-off rather component, abatement of than Parliamentary GGAS on-site legislation greenhouse approval. imposed a gas emissions mandatory (from For power benchmark industrial generation target for per processes) abatement capita GHG not directly projects, emissions related to the emissions reductions to consumption intensity was 2021 on of electricity. required to be electricity lower than
objective was twofold: to reduce GHG with the and use of to develop and reduction activities to offset the of gas For the penalty component, GGAS legislation imposed a mandatory benchmark target for per capita GHG emissions reductions to 2021 on electricity Abatement Certificate Providers could undertake projects. Eligibility for the four offset activities was specified in their respective rules (methodologies): power a range of different power generation activities (in NSW and interstate). demand-side actions taken on the customer side of an electricity meter (i.e., the ‘demand side’). large electricity users—for the abatement of on-site greenhouse gas emissions (from industrial processes) not directly related to the consumption of electricity. current industry practice. For example, under the carbon sequestration methodology, land for forestry activities must be on ‘Eligible Land’. Any additional sequestration is deemed beyond business-as-usual provided it is undertaken in accordance with the Carbon Sequestration Estimation Methodology. share of the electricity sector benchmark on the level of their electricity sales as a proportion of the total state electricity demand. For the offsets component, a variety of baseline methodologies were employed for abatement projects. These were developed by policy makers. There was no scope for submissions for new methodologies, although rules allowed for any policy changes to be made via Ministerial sign-off rather than Parliamentary approval. For power generation abatement projects, emissions intensity was required to be lower than cost
CCA_CFIStudyPublicReportHTMLAppendixA.docx