Carbon Credits (Carbon Farming Initiative—Industrial and Commercial Emissions Reduction) Methodology Determination 2021 (Cth)

Carbon Credits (Carbon Farming Initiative—Industrial and Commercial Emissions Reduction) Methodology Determination 2021

I, Angus Taylor, Minister for Industry, Energy and Emissions Reduction, make the following determination.

Dated: 13 December 2021

Angus Taylor Minister for Industry, Energy and Emissions Reduction

Contents Contents Part 1—Preliminary 1 Name 2 Commencement 3 Authority 4 Duration 5 Definitions 6 Meaning of baseline emissions 7 Meaning of operating emissions 8 Meaning of effective range for a relevant variable 9 Meaning of normal value for a static factor 10 Meaning of independent measurement and verification professional 11 References to factors and parameters from external sources Part 2—Industrial and commercial emissions reduction projects 12 Industrial and commercial emissions reduction projects Part 3—Project requirements Division 1—Operation of this Part 13 Operation of this Part Division 2—General requirements about proposed projects 14 Information required to be included in section 22 application 15 Statements of activity intent about implementations in proposed projects Division 3—General requirements about ongoing projects 16 Heat etc. for use at site of implementation not to be substituted Division 4—General requirements for transferring projects 17 Information required to be included in section 128 application for transferring projects Division 4A—Additionality requirements 17A Requirement in lieu of newness requirement Division 5—Making choices for a project Subdivision 1—Identifying the boundary for each implementation 18 Summary 19 Identifying the boundary for each implementation Subdivision 2—Specifying equipment as partly unaffected 20 Emissions-producing equipment may be specified as partly unaffected Subdivision 3—Choices involved in modelling and measuring emissions for an implementation 21 Sources of baseline emissions 22 Baseline measurement period 23 Sources of operating emissions 24 Measurement time intervals 25 Interactive effects 26 Relevant variables 27 Static factors Division 6—Developing baseline emissions models Subdivision 1—Obligation to develop baseline emissions model 28 Baseline emissions model must be developed for each implementation 29 New baseline emissions model may be developed for subsequent reporting periods 30 Baseline emissions model must be revised each reporting period Subdivision 2—Regression baseline emissions model requirements 31 Regression baseline emissions model requirements 32 Minimum statistical requirements for regression baseline emissions models 33 Declaration relating to non-compliance with minimum statistical requirements Subdivision 3—Engineering baseline emissions model requirements 34 Engineering baseline emissions model requirements 35 Minimum statistical requirements for engineering baseline emissions models 36 Declaration about compliance of engineering baseline emissions model Division 7—Using NGER methods to work out factors 37 Using NGER methods to work out factors Part 4—Net abatement amount Division 1—Preliminary 38 Operation of this Part 39 Overview of gases accounted for in abatement calculations Division 2—Working out the net abatement amount 40 When an implementation may be included in calculating the net abatement amount 41 When an implementation must not be included in calculating the net abatement amount 42 Updated statements of activity intent about implementations in current projects 43 Certain emissions that may be excluded in calculating the emissions abated by an implementation 44 Negative final carbon dioxide equivalent net abatement amount taken to be zero Division 3—Method for calculating net abatement amount 45 Carbon dioxide equivalent net abatement amount Division 4— Calculating baseline emissions and operating emissions 46 Emissions abated 47 Baseline emissions 48 Non-routine adjustments 49 Measured operating emissions Division 5—Calculating interactive effects 50 Interactive effects Division 6—Calculating modelled baseline emissions for an eligible measurement time interval in a reporting period 51 Calculating modelled baseline emissions for an eligible measurement time interval in a reporting period using a regression baseline emissions model 52 Calculating modelled baseline emissions for an eligible measurement time interval in a reporting period using an engineering baseline emissions model Division 7—Calculating measured emissions 53 Measured emissions Division 8—Calculation of relative precision 54 Relative precision of the emissions level predicted by a regression baseline emissions model 55 Relative precision of emissions abated by an implementation Division 9—Calculating accuracy factors 56 Accuracy factor Part 5—Reporting, record‑keeping and monitoring requirements Division 1—Offsets report requirements 57 Operation of this Division 58 General reporting requirements 59 Determination of certain factors and parameters 60 Division of project into smaller parts Division 2—Record‑keeping requirements 61 Operation of this Division 62 General record‑keeping requirements 63 Records relating to declarations made by professionals Division 3—Monitoring requirements 64 Operation of this Division 65 General monitoring requirements 66 Measuring and monitoring requirements 67 Requirement to monitor certain parameters 68 Monitoring equipment 69 Consequences of not meeting requirement to monitor certain parameters