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News from AFAR (Archive)

9 November 2011

Clean Energy Future (CEF) legislation through the Parliament…

Australian Carbon Traders welcomes the passage of this important legislation through the Parliament.

Under the CEF legislation, approximately 400 large emitting businesses will be required to pay $23.00 per tonne of CO2e emitted or surrender eligible offset certificates such as those generated under the Carbon Farming Initiative legislation.

For the first three years (2012-15) the CEF legislation allows emitters to meet their obligations by surrendering up to 5% using permits generated by Carbon Farming Initiate projects.  This equates to approximately 52 million tonnes over the three years, or 17 million tonnes a year.

Legislation creates immediate demand for carbon credits...

The passing of the Clean Energy Future Legislation on Tuesday the 9th November 2012 has lead to an immediate demand for a range of Australian Carbon Credit Units from liable or covered entities.

Australian Carbon Traders (ACT) managing director Ben Keogh spent two days at the Melbourne Carbon Expo recently fielding enquiries from a range of companies interested in buying carbon credits from Australian landholders.  Demand volumes ranged from 25,000 to 500,000 tonnes per annum for the next 3-5 years.

Buyers were particularly interested in Australian projects that can provide early delivery credits; that is, those that can deliver between 2012 and 2015.  Purchasers were also impressed with the business model designed by ACT that allows a greater spread of delivery risk over a range of landholders, locations and project types, and are offering very good terms for the right projects.

Demand was strongest for certificates that can be surrendered under the Clean Energy Future compliance mechanism.

If you have existing eligible plantings or are ready to undertake one of the other project types such as early season or reduced savannah burning, landfill gas capture and generation and/or intensive manure management in piggeries, then we have immediate demand for carbon credits.

The Australian Carbon Traders business model is designed to assist landholders to prepare and register projects, support the monitoring and verification process and aggregate credits into larger parcels for landholders to sell to compliance buyers.

Steps to enter carbon trading:













For further information contact enquiries@australiancabrontraders.com
Phone (03)5470 5722 or 0425 877 676
www.australiancarbontraders.com

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Have an eligible project
Meet methodology requirements
Register as an eligible offsets entity
Register an eligible project
Undertake project activity
Monitor, report and verify project activity
Have credits issued
Trade credits
Project Type
permanent
environmental
plantings
early season
Savannah Burning
natural regeneration of
native vegetation
landfill
gas
fertiliser
efficiency
manure management
in intensive livestock
farming
Demand
Status
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Basic
Eligibility
Criteria
-The site must have been
predominately clear of
vegetation (less than
20% tree cover) on 31st
December 1989

-The site must have been
revegetated after 1st
January 1990 or legally
cleared after 1990, or
been clear of vegetation
for at least five (5) years
prior to revegetation

-The site must have been
revegetated by seeding
or other human action

-The canopy vegetation
established must be able
to reach a height of at
least two meters at
maturity

-The vegetations top
layer must reach a
crown (shade) covering
of greater than 20%

-The site must be at
least 0.2ha

-The project proponent
must keep adequate
records

-The project must
demonstrate compliance
with state, local and
federal planning and
NRM management
requirements

-All parties with an
interest in the land must
provide consent to the
project
-Must reduce the area of
a project that is burnt
each year and/or
shift the seasonality of
this burning from the late
dry season (LDS) towards
the early dry season
(EDS)

-The abatement activity
can only be implemented
under specific
circumstances. Projects
must:
--be located in an area
that receives an average
of more than 1000 mm of
annual rainfall.

--be located in an area
that is subject to an
extended dry season
during which the grass
fuels cure annually and
fires regularly occur; and

--contain only the
vegetation classes

--eucalypt open forest
with tussock grass
ground layer (EOF);

-eucalypt woodland with
tussock grass ground
layer (EW);

-sandstone woodland with
a mixed tussock and/or
hummock (Spinifex) grass
ground layer (SW); and

-sandstone heath with a
ground layer dominated
by hummock grasses
(Spinifex)
-land clear on 31
December 1989

-land clear for at least five
years prior to planting

-mixed species plantings
areas greater than 1
hectare (ACT
requirement)
-the methodology
involves the collection
and combustion of
methane from legacy
waste deposited in
landfills by a landfill gas
extraction system. The
abatement activity
includes:

-installing a gas
collection system
(including wells, flares
and electricity
generation systems);

-collecting landfill gas;
and

-combusting the
methane component of
the landfill gas using
flares and/or an
electricity generation
system to convert it to
carbon dioxide which is
released to the
atmosphere.

-legacy waste is waste
accepted by the landfill
facility before the 1 July
2012
-ability to show
reduction in nitrogen
emissions with no
reduction in yield

-not considered
common practice
-the methodology involves
the capture of biogas
generated by the
decomposition of the
piggery manure waste in
anaerobic lagoons, and
the combustion of the
methane component of
the biogas. The
abatement activity
includes:

-covering anaerobic
lagoons;

-Installing a gas
collection and
combustion system
(flares or electricity
generation system);

-collecting the biogas;
and

-combusting the methane
component of the biogas.
Development
Status
Draft methodology
released
Draft methodology
released
Methodology under
development
Draft methodology
released
Methodology under
development
Methodology under
development