Federal Register of Legislation - Australian Government

Primary content

Specifications as made
This Specification provides attributes of a Kyoto Australian carbon credit unit.
Administered by: Industry, Science, Energy and Resources
Registered 05 Dec 2011
Tabling HistoryDate
Tabled HR07-Feb-2012
Tabled Senate07-Feb-2012

EXPLANATORY STATEMENT

 

 

Issued by the Authority of the Minister for Climate Change

and Energy Efficiency

 

Carbon Credits (Carbon Farming Initiative) Act 2011

 

Carbon Credits (Carbon Farming Initiative) - Kyoto Australian Carbon Credit Unit Specification 2011

 

Section 5 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act) provides that ‘Kyoto Australian carbon credit unit’ (Kyoto ACCU) means ‘an Australian carbon credit unit that has attributes specified in a legislative instrument made by the Minister for the purposes of this definition’.

 

The Carbon Credits (Carbon Farming Initiative) - Kyoto Australian Carbon Credit Unit Specification 2011 (the Specification) specifies the following attributes for this purpose:

 

·        The Australian carbon credit unit (ACCU) is issued in relation to an eligible Kyoto project: the Administrator will declare that a project is an eligible Kyoto project if satisfied that the project is a Kyoto offsets projects within the meaning of section 55 of the Act (subsections 27(2)(a) and 27(12));

·        The reporting period ends on or before the Kyoto abatement deadline: Kyoto ACCUs can only be issued if the project is an eligible Kyoto project and the reporting period ends on or before the Kyoto abatement deadline (subsection 11(2)). Non-Kyoto Australian carbon credit units will be issued if the reporting period ends after the Kyoto abatement deadline (subsection 11(4)); and

·        The ACCU is identified as a Kyoto ACCU within the Australian National Registry of Emissions Units (the Registry): the Registry identification system will ensure that account holders can easily distinguish Kyoto ACCUs.

Kyoto ACCUs represent abatement generated by activities that count towards Australia’s Kyoto targets. Kyoto ACCUs can be exchanged for Kyoto units (section 157) and will be eligible for surrender under the carbon pricing mechanism. The Act makes special provision in relation to the export of Kyoto ACCUs (sections 154 and 155) and the transfer of substitute units instead of the relinquishment of Kyoto ACCUs (section 177). These provisions reflect Australia’s commitments under the Kyoto Protocol.

 

Consultation

The Specification has been prepared following public consultation on the design of the Carbon Farming Initiative and the draft bill for the Act, undertaken between October 2010 and February 2011, including in relation to the attributes of Kyoto ACCUs.

 

Authority:       Section 5 of the Carbon Credits (Carbon Farming Initiative) Act 2011