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To be eligible to earn Australian Carbon Credit Units under the Emissions Reduction Fund, a project must not have begun to be implemented before it has been registered. (This is called the Newness Requirement.)
But many carbon farming activities that are ready to start cannot be registered immediately for many reasons, eg. awaiting an approved methodology.
You now have a way out of this dilemma: the Notice of Intent (NOI) to Participate in the Emissions Reduction Fund (ERF). A NOI may be given to the Clean Energy Regulator to signal your intent to participate in the ERF. The project owner will have until 1 July 2015 to apply for registration of the projects for which notice has been given.
The notification must include:
• the name and location of the project, and
• a project description.
The Clean Energy Regulator will treat the project as new provided that the project begins after the date of notification.
Examples of actions that may indicate a project has started.
The ERF Bill includes a list of examples of actions that may be taken as evidence that the project has commenced, including:
- making a final investment decision in relation to the project
- acquiring or leasing a tangible asset (other than land) that is for use wholly or mainly for the purposes of the project
- commencing construction work for the purposes of the project
- in the case of a sequestration offsets project
- preparing soil for seeding or planting that is for the purposes of the project
- seeding, planting or fertilising plants that are for the purposes of the project
- installing an irrigation or drainage system for the purposes of the project.
A Notice of Intent would allow the project to proceed as if registered.
Examples of actions that do not indicate a project has started.
The ERF Bill includes a list of examples of action that do not indicate a project has commenced, including:
- conducting a feasibility study for the project
- planning or designing the project
- obtaining regulatory approvals for the project
- obtaining consents relating to the project
- obtaining advice relating to the project
- conducting negotiations relating to the project
- sampling to establish a baseline for the project
- an activity specified in the legislative rules
A Notice of Intent would allow the project to proceed as if registered.
Exemptions:
The Notice of Intent is not to be used for projects that are covered under a Carbon Farming Initiative methodology determination. Other transitional arrangements will apply to existing Carbon Farming Initiative projects.
Emissions reduction projects cannot be mandatory under a Commonwealth, state or territory law, unless the method covering the project specifies otherwise.
Projects that cover activities also carried out under existing Commonwealth, state or territory government program or schemes may be excluded from participating in the Emissions Reduction Fund.
FOR MORE INFORMATION: Contact the Clean Energy Regulator. Click here.
FOR ASSISTANCE IN PREPARING AN APPLICATION: Contact Carbon Farmers of Australia,click here or call 02 6374 0329
