independent offsets entity’ additional to information expert and be such as committee that assessed as and are emissions ‘fit assess and proper’ therefore factor data can proposals for prior to considered be methodologies participation to generate incorporated and advises in the scheme. genuine, into the the relevant additional baseline minister. Section 27 of abatement. A methodology the Carbon negative-list and apply The scheme Credits excludes when projects was (Carbon activities due come up for to the renewal. established to Farming complement Initiative) Act existence of Australia’s outlines the adverse Baselines are carbon pricing criteria for impacts on generally static mechanism project employment, and can only water, local and thus eligibility. To be reviewed at includes be eligible, the community the start of a emissions regulator must etc. new crediting from a number be satisfied period unless of sectors not that the The Minister approved by covered under project: for the the project that Environment operator. mechanism. makes Crediting is undertaken decisions on periods are Projects that in activities on generally the positive seven years either reduce Australia emissions or uses an list, and but sequester approved considers reforestation carbon are advice from has 15 years, approved in both the and native Department forest accordance passes the with a of protection methodology, test Environment projects have a has an and the 20-year establishes applicant DOIC. crediting period. rules for who is the undertaking project Each and proponent methodology A number of monitoring the and is a also provides methodologies project and instructions have been generating offsets for developed credits. Credits entity’ determining by the are known as meets the a baseline department; Australian that for example, Carbon Credit for represents piggery Units what methodologies,
independent expert committee that assess proposals for methodologies and advises the relevant minister. The scheme was established to complement Australia’s carbon pricing mechanism and thus includes emissions from a number of sectors not covered under that mechanism. Projects that either reduce emissions or sequester carbon are approved in accordance with a methodology, establishes rules for undertaking and monitoring the project and generating credits. Credits are known as Australian Carbon Credit Units offsets entity’ and be assessed as ‘fit and proper’ prior to participation in the scheme. Section 27 of the Carbon Credits (Carbon Farming Initiative) Act outlines the criteria for project eligibility. To be eligible, the regulator must be satisfied that the project: is undertaken in Australia uses an approved passes the test has an applicant who is the project proponent and is a offsets entity’ meets the for additional to and are therefore considered to generate genuine, additional abatement. A negative-list excludes activities due to the existence of adverse impacts on employment, water, local community etc. The Minister for the Environment makes decisions on activities on the positive list, and considers advice from both the Department of Environment and the DOIC. Each methodology also provides instructions for determining a baseline that represents what information such as emissions factor data can be incorporated into the baseline methodology and apply when projects come up for renewal. Baselines are generally static and can only be reviewed at the start of a new crediting period unless approved by the project operator. Crediting periods are generally seven years but reforestation has 15 years, and native forest protection projects have a 20-year crediting period. A number of methodologies have been developed by the department; for example, piggery methodologies,
CCA_CFIStudyPublicReportHTMLAppendixA.docx