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A practical overview from planning to practice on of the capture and combustion of methane from landfill. Source: Clean Energy Regulator (CER) July 2013.

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Presentation on theme: "A practical overview from planning to practice on of the capture and combustion of methane from landfill. Source: Clean Energy Regulator (CER) July 2013."— Presentation transcript:

1 A practical overview from planning to practice on of the capture and combustion of methane from landfill. Source: Clean Energy Regulator (CER) July 2013

2 Purpose support your participation help you to understand what’s involved

3 Introduction Purpose: Understand Clean Energy Regulator’s role Understand key concepts behind the Carbon Farming Initiative’s design

4 Clean Energy Regulator Our vision is to support Australia in transitioning to a low carbon economy through an informed and efficient market for carbon and investment in renewable energy.

5 Three government organisations have a role in the Carbon Farming Initiative Department of Industry: Development of policy, legislation and methodologies Clean Energy Regulator: Assessment of projects, education, issue of Australian carbon credit units Department of Agriculture, Fisheries and Forestry: Provides information and support for landholders and funds research

6 Australian Government response to Climate Change International: Kyoto Agreement Domestic: Reduction in greenhouse gas pollution using the market »Carbon pricing mechanism »Clean Energy Future Package

7 How the Carbon Farming Initiative works You can earn Australian carbon credit units (ACCUs) by: »storing carbon, or »reducing greenhouse gas emissions on the land 1 ACCU = 1 tonne of carbon dioxide equivalent (CO 2 -e)

8 Methodology determinations Set out the rules for undertaking a specific activity to earn Australian carbon credit units

9 Guide to undertaking a landfill – capture and combustion of methane project Purpose: Support your decision to apply one of the Landfill capture and combustion methodologies on your site.

10 What does a landfill capture and combustion of methane project look like? Collection and combustion of landfill gas from legacy waste (received before 1 July 2012) The landfill gas extraction and combustion system is: »Installed new on or after 1 July 2007 »Upgraded on or after 1 July 2010 »Installed under a transitioning scheme

11 Transitioning schemes Greenhouse Friendly NSW and ACT Greenhouse Gas Reduction Scheme Verified Carbon Standard Cities for Climate Protection Program Transitioning isn’t automatic. Projects must meet eligibility requirements of the methodology determinations. Two year window, ending on 8 December 2013, for transitioning into the Carbon Farming Initiative

12 Why participate? Direct financial benefits, through selling ACCUs on the carbon market. Other benefits: Reduce or offset liability under the carbon pricing mechanism Generate base load electricity and create renewable energy certificates

13 How do I get started? Check your eligibility Assess the feasibility Check your expectation for return on investment Decide on your business model Apply: »Recognised Offsets Entity »ANREU account »Eligible Offsets project

14 How do I undertake a landfill gas capture and combustion project? Meet eligibility and additionality requirements Establish your project baseline, depending on your circumstances Transitioning: »Greenhouse Friendly 0%, »NSW and ACT GGAS 24%. Guidelines for Calculating Regulatory Baselines for Legacy Waste Landfill Methane »Consider what quantitative limits and qualitative requirements apply. Illustration of different baseline situations

15 Project boundary Identifies the activities you need to assess to identify the change in greenhouse gas emission resulting from your project.

16 Measure and calculate abatement Calculate the amount of methane captured and destroyed by the project, in addition to regulatory requirements CFI Landfill gas calculator The Landfill Gas Calculator is free and can be accessed from the Clean Energy Regulator website.

17 Monitoring and record keeping Methodology-specific (including your licence and management plans) Combustion device information Monitoring device information Direct and indirect measurement Legacy waste proportion data Monitoring data is crucial to your application for ACCUs. Will you be able to protect your data in an unforseen event? Are you collecting it efficiently?

18 Audit report Provides a ‘reasonable assurance’ opinion on whether or not your project complies with the methodology determination and Carbon Farming legislation.

19 Apply for carbon credits Submit offsets report and audit report to the Clean Energy Regulator Australian carbon credit units (ACCUs) are issued into your account in the Registry Earn money by selling the ACCUs and transferring them to another account in the Registry

20 Administration: working with the Clean Energy Regulator Purpose: Understand three key administrative steps involved with Carbon Farming Initiative projects.

21 Three important parts to your Carbon Farming Initiative administration 1.Recognised Offsets Entity 2.Eligible Offsets Project 3.Certificate of Entitlement Download application forms from the Clean Energy Regulator web site. There are no application fees.

22 Recognised Offsets Entity Essential to be part of the Carbon Farming Initiative and issued with Australian carbon credit units Open an ANREU Account »fit and proper person test »proof of identity test Centrally processed, case officer allocated Tip: call us before you submit your application to make sure it’s all in order: (02) 6159 3434

23 Eligible Offsets Project Sets out your plan to implement a Carbon Farming Project. Checked by the Clean Energy Regulator to make sure your plans meet the Carbon Farming Initiative rules. Processed by Carbon Farming team, new case officer.

24 Eligible Offsets Projects: Q8 Project location. Q25 Legal Right Need to be sure that the project is where it claims to be and land title details are up to date Correct details for the Register of Offsets Projects Business model is transparent about land ownership, and facility and gas rights.

25 *Use of this calculator is not a mandatory requirement. Eligible Offsets Projects: Q12 Project Description Confirm regulatory baseline in project description. Show calculations using CFI Landfill Methane Regulatory Baseline Calculator*. Confirm % of abatement required by law and show regulatory additionality.

26 Eligible Offsets Projects: Q22 Regulatory approvals Appropriate to your situation State, local government Any exemptions?

27 Certificate of Entitlement and offsets report Applications for Australian carbon credit units are made at the same time as you submit your offsets and audit reports. You can choose when to report and apply for credits, within the one to five year period. Good record keeping is essential to your report and audit.

28 Summary: three important parts to your administration 1.Recognised Offsets Entity 2.Eligible Offsets Project 3.Certificate of Entitlement

29 Carbon Markets and feasibility Purpose: Understand the basics on ACCU markets to enable you to ask questions of your advisors Provide you with tips to consider when undertaking your feasibility

30 Types of markets ACCUs are personal property and can be traded. Two key markets: »Domestic compliance market »Voluntary market

31 Selling ACCUs Compliance market - pay attention to: »Carbon pricing mechanism in fixed price period (to 2015) »Market for European Union Allowances (after 2015) Voluntary market – pay attention to: »Charisma of your project

32 Who can help? Seek advice from an Australian Financial Services Licence holder Consider these resources: »Your normal bank and/or broker »Carbon Markets Institute: CFI hub »Liable Entities Public Information Database (LEPID)

33 Project feasibility 1. Regulatory Feasibility Methodology available? In Australia? Required by law? Legal right? 2. Commercial feasibility Kyoto or Non-Kyoto ACCUs? Number ACCUs estimated? Timeline to deliver ACCUs?

34 Project feasibility 3. Methodology Can you meet the rules for eligibility and data capture as described in an approved methodology determination? 4. Financial feasibility Know the costs and benefits Cash flow Scenario analysis

35 Project feasibility 5. Legal feasibility Pass tests to open ANREU Account? Legal right to carry out project? 6. Organisational capabilities Own and operate? Engage third parties? (Aggregator, broker, cooperative)

36 More Information Online: Phone: 1300 553 542 Email: Watch the webinar

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