From the book: Green Technology Strategies

Draft National Carbon Offset Standard

From: Draft National Carbon Offset Standard, Department of Climate Change, 19 December 2008, URL:

http://www.climatechange.gov.au/nav/carbon_offset.html

This draft Standard is prepared by the Department of Climate Change ahead of decisions on the design of a national carbon offset standard. Given the Discussion Paper consideration of the issue of carbon neutrality under the Scheme (chapter 2), the Standard does not specifically define what is required to achieve carbon neutrality in the context of a cap and trade scheme.

Contents

  1. Scope
  2. Normative reference
  3. Terms and definitions
  4. Elements of the Standard
  5. Carbon footprint calculation
    1. Carbon footprint calculation principles
    2. Carbon footprint calculation of an organisation
      1. Boundary of an organisation
      2. Greenhouse gas emissions sources
      3. Greenhouse gas emissions factors and calculation methodology
    3. Carbon footprint calculation of a product or service
      1. Scope
      2. System boundary
      3. Greenhouse gas emissions sources within the system boundary
      4. Greenhouse gas emissions factors and calculation methodology
      5. Inventory analysis
      6. Emissions attributable to each stage of the life cycle of the product or service
    4. Verification of carbon footprint calculations
  6. Carbon offsetting
    1. Eligible offset units
    2. Domestic abatement projects
    3. Retirement
    4. Management Plan
  7. Public disclosure
    1. Reporting
    2. Public statements

1. Scope

The National Carbon Offset Standard (the 'Standard') specifies the general principles and requirements for calculating the greenhouse gas emissions associated with an organisation's activities, product or service, and the acquisition and retirement of carbon offsets in order to offset all, or a portion of, the associated emissions. The standard is intended to ensure that consumers have confidence in the voluntary< carbon offset market and the integrity of the carbon offset products they purchase.

2. Normative reference

The Standard contains provisions which are based on existing Australian legislation and international standards. The editions of these documents, as referenced below, were current at the time of publication.

Procedures for bringing forward proposals for domestic offsets are based on the relevant procedures under the Greenhouse FriendlyTM initiative which are based on those utilised by the Clean Development Mechanism under the United Nations Framework Convention on Climate Change (UNFCCC).

All standards and legislation are subject to revision. Organisations should ensure that they apply the most recent edition of the Standard, as well as the Australian legislation and international standards referenced above.

3. Terms and definitions

Abatement: Reduction of greenhouse gas emissions, or enhancement of greenhouse gas removal from the atmosphere by sinks.

Additionality: A requirement that a project or activity provide abatement that is additional to any that would occur in the absence of the project or activity.

Annex I countries: Countries listed in Annex I to the UNFCCC, including all developed (OECD) countries and the countries in transition in central and eastern Europe (including Russia and Ukraine). In the context of the Kyoto Protocol, 'Annex 1 country' is used to refer to a party included in Annex 1 to the UNFCCC with a commitment inscribed in Annex B to the Kyoto Protocol.

Annex II countries: The group of countries included in Annex II to the UNFCCC, including all OECD countries. Under Article 4.2 (g) of the Convention, these countries are expected to provide financial resources to assist developing countries to comply with their obligations, such as preparing national reports. Annex II countries are also expected to promote the transfer of environmentally sound technologies to developing countries.

Carbon dioxide equivalence (CO2- e): A standard measure that takes account of the different global warming potentials of greenhouse gases and expresses the cumulative effect in a common unit.

Carbon footprint: A measure of the carbon dioxide equivalent emissions attributable to an activity; it is commonly used at an individual, household or organisation, product and service level.

Carbon neutrality: Commonly refers to a situation where the net emissions associated with an organisation's activities, product or service are zero.

Carbon offset: Represents a reduction in greenhouse gases relative to a businessas-usual baseline. Carbon offsets are tradeable and often used to negate (or offset) all or part of another entity's emissions.

Certified Emission Reduction (CER) unit: A Kyoto unit corresponding to one metric tonne of carbon dioxide equivalent emissions, and issued for verified emission reductions or removals achieved by projects approved under the Clean Development Mechanism.

Clean Development Mechanism (CDM): The CDM allows greenhouse gas emission reduction projects to take place in countries that have no emission targets under the United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol, yet are signatories.

DCC: Department of Climate Change

Emission factor: A Kyoto unit corresponding to one metric tonne of carbon dioxide equivalent emissions, and issued for emission reductions and removals generated from joint implementation projects.

Emissions Reduction Unit (ERU): Equal to one metric tonne of CO2-e emissions reduced or sequestered arising from a Joint Implementation (defined in Article 6 of the Kyoto Protocol) project.

Facility: An activity, or a series of activities (including ancillary activities), that involve the production of greenhouse gas emissions, the production of energy or the consumption of energy and that form a single undertaking or enterprise and meet the requirements of the NGER Regulations.

Global Warming Potential (GWP): A system of multipliers devised to enable warming effects of different gases to be compared. For example, over the next 100 years, a gram of methane in the atmosphere is currently estimated as having 21 times the warming effect as a gram of carbon dioxide; methane's 100-year global warming potential is thus 21.

Greenhouse gases: The atmospheric gases responsible for causing global warming and climate change. The major GHGs are carbon dioxide (CO2), methane (CH4), nitrous oxide (N20), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).

Joint Implementation (JI): A market-based implementation mechanism defined in Article 6 of the Kyoto Protocol, allowing Annex I countries or companies from these countries to implement projects jointly that limit or reduce emissions or enhance sinks, and to share the Emissions Reduction Units. JI activity is also permitted in Article 4.2(a) of the UNFCCC.

Kyoto Protocol: An international treaty created under the UNFCCC in 1997. It entered into force in 2005. Among other things, the Kyoto Protocol sets binding targets for the reduction of greenhouse gas emissions by developed countries. It includes individual emission reduction targets for Annex I countries to be met within the first commitment period of 2008-12.

Offset: See Carbon offset.

Operational control: The greatest authority to introduce and implement any or all of the following for the facility: (i) operating policies; (ii) health and safety policies; (iii) environmental policies.

Permanence: With regard to offsets, requires the generation of offsets to have actually occurred and the carbon stored or sequestered not to be released into the atmosphere in the future.

Removal unit (RMU): A Kyoto unit corresponding to one metric tonne of carbon dioxide, and issued for removals of carbon dioxide from the atmosphere by eligible land use, land-use change and forestry activities undertaken in a Kyoto Party.

Scope 1 emissions: The release of greenhouse gas into the atmosphere as a direct result of an activity, or series of activities that constitute a facility.

Scope 2 emissions: The release of greenhouse gas as a result of one or more activities that generate electricity, heating, cooling or steam that is consumed by a facility but do not form part of the facility.

Scope 3 emissions: The release of greenhouse gas into the atmosphere that occurs outside the boundary of a facility as a result of activities at a facility and are not scope 2 emissions.

Sequestration: The removal of atmospheric carbon dioxide, either through biological processes (for example, photosynthesis in plants and trees), or geological processes (for example, storage of carbon dioxide in underground reservoirs).

The Standard: National Carbon Offset Standard.

United Nations Framework Convention on Climate Change (UNFCCC):

An international treaty, adopted in 1992, aimed at achieving the stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.

4. Elements of the Standard

The Standard comprises six key elements:

5. Carbon footprint calculation

5.1 Carbon footprint calculation principles

The calculation of the carbon footprint of an organisation, product or service should be performed in accordance with the following principles which are based upon those outlined in the Greenhouse Gas Protocol:

  1. Relevance: Ensure the greenhouse gas inventory of an organisation, product or service appropriately reflects the greenhouse gas emissions attributed to that organisation, product or service.
  2. Completeness: Account for and report all greenhouse gas emissions sources and activities within the defined boundary of the organisation, product or service. Disclose and justify any specific exclusions.
  3. Consistency: Use consistent methodologies to allow for meaningful comparisons of greenhouse gas emissions over time. Transparently document any changes to the data, boundary, methods, or any other relevant factors.
  4. Transparency: Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the calculation methodologies and data sources used.
  5. Accuracy: Ensure that the quantification of greenhouse gas emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.

5.2 Carbon footprint calculation of an organisation

  1. An organisation should apply the following steps outlined in the Standard in order to calculate the greenhouse gas emissions attributable to its operations. The approach set out in the Standard for the carbon calculation of an organisation is consistent with the requirements of the NGER Act.
  2. An organisation requiring further guidance should refer to the NGER Act and associated subordinate legislation and guidelines.

5.2.1 Boundary of an organisation

The boundary of an organisation defines the activities that an organisation should include in its carbon footprint calculation.

  1. An organisation's boundary should be defined to include:
    1. all corporate group members; and
    2. all facilities under the operational control of corporate group members.
  2. An organisation's corporate group members include:
    1. the controlling corporation;
    2. subsidiaries;
    3. joint ventures; and
    4. partnerships.
  3. A corporate group member will have operational control over a facility if it has the authority to introduce or implement any or all of the following for that facility:
    1. operating policies;
    2. health and safety policies; or
    3. environmental policies.

Other boundary approaches consistent with those outlined in the Greenhouse Gas Protocol can be used. In all cases the approach used should be transparently documented and disclosed.

5.2.2 Greenhouse gas emissions sources

  1. An organisation should calculate all Scope 1 and Scope 2 emissions attributable to sources within its boundary.

    Scope 1 emission sources are divided into the following main sectors, as classified by the 1996 IPCC (Intergovernmental Panel on Climate Change) Guidelines for National Greenhouse Inventories and used in Australia's National Greenhouse Accounts:

    • the combustion of fuel for energy;
    • the extraction, production, flaring, processing and distribution of fossil fuels;
    • industrial processes where a mineral, chemical or metal product is formed using a chemical reaction that generates greenhouse gases as a by-product; and
    • waste disposal - either in landfill, as management of wastewater or from waste incineration.

    Scope 2 emissions result from activities that generate electricity, heating, cooling or steam that is consumed by a facility but do not form part of the facility.

  2. An organisation may voluntarily elect to calculate Scope 3 emissions attributable to sources within its boundary. This may provide the organisation with a more comprehensive view of the greenhouse gas emissions attributable to its activities.

    An organisation should refer to the Greenhouse Gas Protocol which provides the following guidelines for determining the relevance of Scope 3 emissions to assist their decision to calculate Scope 3 emissions:

    • the Scope 3 emissions from a particular source are large relative to the organisation's Scope 1 and Scope 2 emissions;
    • the Scope 3 emissions from a particular source contribute to the organisation's greenhouse gas risk exposure;
    • the Scope 3 emissions from a particular source are deemed critical by key stakeholders; and
    • the organisation could undertake or influence the potential reduction of Scope 3 emissions from a particular source.

  3. An organisation should calculate the six greenhouse gases included under the Kyoto Protocol.

5.2.3 Greenhouse gas emissions factors and calculation methodology

  1. An organisation should collect activity data relating to the greenhouse gas emissions sources within its boundary.
  2. An organisation should calculate the greenhouse gas emissions resulting from the sources within its boundary in accordance with one of the following options:
    1. using default emissions factors derived from the latest version of the National Greenhouse Accounts (NGA) Factors;
    2. direct measurement using industry practices for sampling and Australian or equivalent standards for analysis;
    3. direct measurement using Australian or equivalent standards for sampling and analysis; and
    4. direct measurement using continuous or periodic emissions monitoring.

    Specific guidance for use of these options is provided in the NGER Determination.

  3. An organisation should apply the calculation approach selected in 5.2.3(b) to calculate the greenhouse gas emissions attributable to sources within its boundary during a specified period of time (e.g. a 12 month period).

    Collectively, the greenhouse gas emissions attributable to each source will provide an estimate of the greenhouse gas emissions attributable to the organisation during a specified period of time.

  4. An organisation should assess the uncertainty of greenhouse gas emissions estimates in accordance with the NGER Determination.

5.3 Carbon footprint calculation of a product or service

  1. An organisation should undertake a Life Cycle Analysis (LCA) assessment in accordance with the current Australian Standard in the ISO 14040 series and with reference to the following steps outlined in the Standard, in order to calculate the greenhouse gas emissions attributable to a product or service.
  2. An organisation should prepare a LCA report which contains the following components:
    1. scope;
    2. 11
    3. system boundary;
    4. greenhouse gas emissions sources within the system boundary;
    5. greenhouse gas emissions factors and calculation methodology;
    6. inventory analysis; and
    7. calculated greenhouse gas emissions attributable to each stage of the life cycle of the product or service.

5.3.1 Scope

  1. The Scope of the LCA report should include a description of:
    1. the product or service and its function; and
    2. the measurable parameters and system boundary of the product or service, including a justification of the proposed boundary and parameters.

5.3.2 System boundary

The system boundary of a product or service defines the scope for calculating the greenhouse gas emissions attributable to a product or service over its life cycle.

  1. An organisation should include all relevant stages of the life cycle of the product or service in the assessment, including:
    1. production;
    2. delivery;
    3. use; and
    4. disposal.

Potentially relevant stages to be included and assessed in the life cycle of the product include:

Potentially relevant stages to be included and assessed in the life cycle of the service include:

5.3.3 Greenhouse gas emissions sources within the system boundary

  1. An organisation should consider the following sources of greenhouse gas emissions from within the system boundary of the product or service, with reference to the potentially relevant stages of the life cycle listed above:
    1. greenhouse gas emissions resulting from the transformation, production, processing and acquisition of raw materials;
    2. greenhouse gas emissions resulting from manufacture, production and final assembly;
    3. greenhouse gas emissions resulting from the operation of premises;
    4. greenhouse gas emissions resulting from all methods of transport;
    5. greenhouse gas emissions resulting from warehousing and sales;
    6. greenhouse gas emissions resulting from services that form an integral part of distribution and supply;
    7. greenhouse gas emissions resulting from the operation of the product and provision of the service; and
    8. greenhouse gas emissions resulting from the disposal or recycle of the product.

(b) An organisation should calculate the six greenhouse gas emissions included

under the Kyoto Protocol.

5.3.4 Greenhouse gas emissions factors and calculation methodology

  1. An organisation should collect activity data relating to the greenhouse gas emissions sources within the system defined for the product or service.
  2. An organisation should calculate the greenhouse gas emissions resulting from the sources within the system boundary of the product or service in accordance with one of the following options:
    1. using default emissions factors derived from the latest version of the National Greenhouse Accounts (NGA) Factors;
    2. direct measurement using industry practices for sampling and Australian or equivalent standards for analysis;
    3. direct measurement using Australian or equivalent standards for sampling and analysis; and
    4. direct measurement using continuous or periodic emissions monitoring.
    An organisation should calculate the greenhouse gas emissions attributable to each stage of the life cycle of the product or service. Collectively, the greenhouse gas emissions attributable to each stage of the life cycle will provide an estimate of the greenhouse gas emissions attributable to the life cycle of the product or service.
  3. An organisation should assess the uncertainty of greenhouse gas emissions estimates in accordance with the NGER Determination.

5.3.5 Inventory analysis

The inventory analysis of a LCA report outlines the data collection and calculation procedures used to calculate the greenhouse gas emissions attributable to a product or service.

  1. An organisation should provide the following information for each stage of the life cycle of the product or service:
    1. the reference unit of the product or service for which the greenhouse gas emissions are calculated, e.g. litre of fuel, unit of gas, one car, etc;
    2. what the data includes and whether start-up/shutdown and emergency conditions are included, i.e. what production or service delivery inputs are considered;
    3. geographical representativeness, e.g. local or regional variations associated with the calculated greenhouse gas emissions;
    4. the allocation of greenhouse gas emissions amongst products or services that share a production or service delivery platform;
    5. the period during which the information has been collected;
    6. the process used to collect the information;
    7. the significance of possible exclusions and assumptions;
    8. the source of the information; and
    9. where relevant, the uncertainty associated with key parameters.

5.3.6 Emissions attributable to each stage of the life cycle of the product or service

  1. Convert all energy consumption data into quantities of carbon dioxide equivalent (CO2e) emissions for each life cycle stage of the product or service assessed. These values, when summed up, will estimate the total attributable emissions for the greenhouse life cycle of the product or service.
  2. Quantify the uncertainty in the calculations for each stage of the life cycle. This will help determine the total emissions, for accounting purposes, and the amount of abatement needed to be acquired to offset the emissions associated with the product or service.

5.4 Verification of carbon footprint calculations

A robust and transparent verification model is fundamental to provide confidence to users of greenhouse gas emission data.

Audit provisions for the Carbon Pollution Reduction Scheme and the NGER Act are under development at the time of release and should be used as a guide to verification and auditing when they are available. Until then verification should be undertaken in accordance with the AS ISO 14064 series.

Independent verification and review should be conducted by an entity accredited under International Standard ISO 14065. JAS-ANZ (the Joint accreditation System for Australia and New Zealand) is one of a number of organisations offering accreditation against ISO 14065.

6 Carbon offsetting

6.1. Eligible offset units

The following units will be accepted under the Standard for the purposes of voluntary carbon offsetting:

  1. Australian carbon pollution permits;
  2. Certified Emissions Reductions (CERs) except long term (ICERs) and temporary (tCERs);
  3. Emission Reduction Units (ERUs); and
  4. Removal Units (RMUs).

The Government reserves the right to amend eligible offset units as required in light the development of new international standards, and other policy developments.

6.2 Domestic abatement projects

Domestic offset units may potentially be generated from sources not covered under the Carbon Pollution Reduction Scheme (CPRS) or required by local or state regulations. This creates an opportunity for proponents to propose potential abatement projects within Australia on the understanding that they meet the carbon offset eligibility criteria outlined below.

In order for domestic abatement projects to be considered valid, the Standard requires the projects to be:

  1. Additional

    Abatement generated must be beyond what would be undertaken as part of business-as-usual investment or beyond what is required by regulation.

    The level of additional abatement generated by a project is the difference between the emissions associated with the project (or project emissions) and the emissions under the business-as-usual scenario. Demonstrating the additionality of a proposed domestic abatement project requires satisfying several steps outlined in international law.1 The Greenhouse Friendly Guidelines provide further guidance on additionality.2

  2. Permanent

    Emission reductions must be permanent. In the case of sinks, this requires that the carbon stored is sequestered and will not be released into the atmosphere in the future.

  3. Measurable

    Methodologies used to quantify the amount of abatement generated must be robust.

  4. Transparent

    Consumers and other interested stakeholders must be able to examine information on projects by accessing a publicly available website.

  5. Independently verified

    Eligibility of the project and abatement subsequently generated must be validated by a non-interested third party. Existence of a conflict of interest should also be determined.

  6. Registered

    Units generated must be registered and tracked in a publicly transparent registry.

In order to propose a domestic abatement project, the following must be undertaken:

  1. Preparation and submission of an Eligibility Statement for the project

    Abatement projects must meet the carbon offset eligibility criteria to be considered for approval. The DCC will review the information submitted in the Eligibility Statement against the eligibility critera, and will provide preliminary non-binding comments with respect to eligibility of the proposed project. The eligibility statement must address the following eligibiity criteria. The project must:

    1. occur within Australia;
    2. result in additional greenhouse gas abatement;
    3. not be implemented to meet regulatory compliance obligations under any Australian laws or regulations;
    4. not result in a shift of emissions to other locations within Australia or overseas; and
    5. produce abatement capable of capable of being verified to an acceptable standard.

  2. Preparation of an Emission / Abatement Study for the project

    An Emission / Abatement Study facilitates calculation of the abatement that will be achieved by the project, and forecasting future abatement. The Emission / Abatement Study can be conducted in-house or externally by way of a consultant to either prepare the Emissions / Abatement Study or provide technical advice.

    The Emission / Abatement Study must include:

    1. a baseline emissions inventory that identifies the project boundary, emissions sources, activity levels and emission factors;

    2. the 'business-as-usual' emission forecast that is calculated by multiplying the baseline emission factors with the expected activity levels;

    3. the project emissions forecast to determine the total emissions for the project over the five-year approval period;

    4. forecast abatement for the project, that is, the expected abatement for each year of the project's five-year approval period, and the total expected abatement. The uncertainty associated with the abatement calculations must also be determined; and

    5. Project risks including any significant risks that could affect the estimate and achievement of the forecast abatement and the actions to be taken to mitigate these risks.

  3. Development of a Project Monitoring Plan

    A project monitoring plan demonstrates how the project and abatement generated will be monitored. The Project Monitoring Plan should include the following information.

    1. Project organisation

      • Identify project parameters (including emissions sources, activity levels and emission factors), operations and activities that will be monitored to ensure accurate measurement of the abatement achieved by the project;
      • Provide details of the transfer of emissions to other sites or locations (leakage) as a result of the abatement project, including an indication of the likelihood of leakage occurring. If leakage is identified, or there is uncertainty about leakage occurring, this should be monitored appropriately in the Project Monitoring Plan and subsequently factored into the abatement calculations for the project;
      • Identify variables in the baseline emissions inventory that will be monitored. Include any variables that could affect the validity of the baseline (refer to the risks identified in the Emission / Abatement study); and
      • Ensure responsibilities and authorities have been defined and appropriate resources for management of the abatement project will be provided.

    2. Operational control

      • Identify project operations and activities that, if not controlled, could affect the abatement achieved;
      • Provide evidence that these operations and activities would be carried out under specified conditions and document any of the relevant operational criteria; and
      • Identify the measures put in place to control any risks to the abatement being generated by the project (as identified in the Emission / Abatement Study).

    3. Training and competence

      • Identify staff that will have responsibility for monitoring and taking timely action to ensure that the achieved abatement is accurately monitored and measured;
      • Identify the minimum qualifications, training and experience required for monitoring staff;
      • Specify how it will be ensured that personnel performing tasks (that can affect the achievement of the forecast abatement) are competent; and
      • Specify how it will be ensured that these persons maintain the relevant qualifications / training / experience throughout the abatement project's lifetime.

    4. Corrective and preventative action

      • Identify procedures that will be established and implemented to identify situations where corrective action is required; and
      • Identify personnel responsible for and with authority to investigate correction action, and for taking action to return the project to planned operating conditions.

      Note that the DCC must be notified of any situation that is likely to result in material changes to abatement forecast.

    5. Monitoring equipment (as applicable)

      • Set out how equipment used for emissions monitoring will be calibrated and maintained in accordance with the equipment manufacturer's instructions and how all relevant records will be maintained; and
      • Provide evidence that equipment will not be expected to monitor data at a higher accuracy than that for which it is designed.

    6. Data

      • Describe the methods and procedures in place for measuring and monitoring data (either by using national, international or other scientifically valid test methods);
      • Identify any accredited laboratories to be used;
      • Identify intended sampling practices;
      • Identify methodologies for estimating and controlling uncertainty and statistical error; and
      • Identify the quality control practices that will be put in place to ensure data is valid and accurate.

    7. Records

      • Identify the records required to monitor the achieved abatement, and the processes in place to establish and maintain these;
      • Create a clear and transparent audit trail of documents, data and records that support any calculations, assumptions or decisions reached in relation to the abatement project. This will allow verifiers to ascertain how and why decisions have been reached and to verify the accuracy of calculations made;
      • Specify how suitable records will be maintained to demonstrate that the monitoring data is valid and accurate; and
      • Specify how records related to the abatement project will be made available to verifiers as required.

    8. Independent verification of the Eligibility Statement, Emission / Abatement Study and Project Monitoring Plan

      Independent verification is a critical part of the approval process.

      Independent verification validates the eligibility of the project and the amount of abatement the project is forecast to achieve, and helps ensure the adequacy of the Project Monitoring Plan.

      Verification must be undertaken by a suitably qualified independent entity and in accordance with Section 5.4.

    9. Submission of an application to the DCC

      The application must comprise;

      1. the Eligibility Statement
      2. the Emission / Abatement Study
      3. the Project Monitoring Plan; and
      4. the independent verification report for the Eligibility Statement, Emission / Abatement Study and Project Monitoring Plan.

    Following submission of an application, the DCC will appoint an appropriate third party with suitable expertise to independently assess the validity of the application, and make a recommendation to the DCC regarding approval. The DCC may approve or reject the independent assessor's recommendation, and reserves the right to approve, reject, request further information, or defer an application for abatement project approval at the DCC's absolute discretion.

    If approval is granted, an applicant will be required to sign a Deed of Approval with the DCC. This Deed will set out the ongoing obligations as a provider of domestic abatement credits. Once a Deed of Approval is signed, the applicant will be able to enter into direct arrangements with organisations seeking to purchase approved domestic abatement.

    In order to maintain an approved domestic abatement project, the following must be undertaken.

    1. Ongoing emissions monitoring

      Monitor the emissions associated with the approved project according to the Project Monitoring Plan. Update the Emission / Abatement Study to account for any relevant changes and notify the DCC of any situation that is likely to result in the project not continuing to meet the abatement forecast in the Emissions / Abatement Study.

    2. Independent verification of the abatement project

      Once the project is approved and generating abatement, the abatement must be independently verified at least once every 12 months. If it is considered that the abatement generated is not suitable for the purposes of verification (ie. the verification costs cannot be justified against the abatement claim), a case must be presented to the DCC outlining reasons for this.

      Abatement providers are responsible for having an abatement claim verified as well as bearing the cost of the verification. It is best practice to maintain all appropriate records to allow abatement from the project to be verified.

    3. Register carbon offsets

      All domestic carbon offsets generated are required to be formally registered on an independent registry. Once purchased, these offsets must be retired or surrendered within the appropriate time frame (see Section 6.3 below).

    4. Annual reporting

      For all domestic abatement generated report to the Department of Climate Change on:

      1. the date and quantity of abatement;

      2. the quantity of abatement sold, the name of the purchasers, the date of sale; and

      3. the year in which the sold abatement was generated

    6.3 Retirement

    Organisations should voluntarily surrender and retire the equivalent number of eligible units to offset the total emissions associated with any product or service, or organisation within 3 months following the annual reporting period.

    6.4 Management Plan

    Organisations that calculate their emissions footprint and purchase offsets to balance their emissions should develop a management plan to demonstrate that appropriate systems are in place to monitor reduce greenhouse gas emissions associated with the relevant product, service or organisation, and to purchase and retire the equivalent carbon offsets.

    A management plan must identify:

    1. the greenhouse gas emissions attributable to an organisation's activities, product or service within each reporting year;

    2. the equivalent quantity of carbon offsets required to offset the emissions attributed to the product, service or organisation for each reporting year;

    3. records required, and the process for establishing and maintaining those records, to ensure that the greenhouse gas emissions attributable to the product, service or organisation, and any changes in these, are recorded in a timely manner; and

    4. quality control practices in place to ensure data quality is maintained.

    7 Public disclosure

    7.1 Reporting

    An annual report should be made publicly available to communicate progress on carbon offsetting activities.

    The annual report should be made against a Management Plan and should include the following:

    1. the total amount of greenhouse gas emissions generated from the product sold, service provided, or the organisation's activities in the reporting year, including any actions taken to reduce it;

    2. records to prove that the acquired approved abatement is sufficient to offset the proportion of the total greenhouse emissions associated with the organisation's activities, products or service committed to be offset;

    3. details of the quantity and type of credits purchased, and appropriate register into which they have been retired, or cancelled.

    7.2 Public statements

    Organisations that take voluntary action to calculate their carbon footprint, and offset emissions in accordance with this Standard are entitled to make appropriate public statements.

    Examples of acceptable claims include:

    "The greenhouse gas emissions generated from this product have been calculated and offset in accordance with the National Carbon Offset Standard";

    "We are committed to offsetting our carbon footprint consistent with the National Carbon Offset Standard"; and

    "This offset meets the National Carbon Offset Standard".

    The Australian Competition and Consumer Commission (ACCC) will assess compliance with the Standard. Incorrect claims risk contravening the Trade Practices Act 1974.

    1 UNFCCC - http://cdm.unfccc.int/methodologies/PAmethodologies/Additionali tyTools/Additionality_tool.pdf

    2 Greenhouse Friendly - http://www.climatechange.gov.au/greenhousefriendly/publications/pubs/additionality -guidance.pdf

From the book: Green Technology Strategies

This book is about how to reduce carbon emissions and achieve other environmental benefits by using computers and telecommunications technology. It is designed to be used within an online course for professionals, using mentored and collaborative learning techniques.

Title: Green Technology Strategies: Using computers and telecommunications to reduce carbon emissions

Copyright © , 2009

Publisher: Tomw Communications, PO Box 13, Belconnen ACT 2617, Australia. Website: http://www.tomw.net.au/green

New edition available: ICT Sustainability: Assessment and Strategies for a Low Carbon Future, September 2011.

These notes are used for the courses:

  1. Green ICT Strategies (ACS25): offered in the Postgraduate Program of Open Universities Australia and available from 2010 to students of Curtin University, Griffith University, Macquarie University, Monash University, RMIT University, Swinburne University and the University of South Australia,

  2. Green Technology Strategies: offered in the Computer Professional Education Program, Australian Computer Society (first run as "Green ICT Strategies" in February 2009), and

  3. Green Information Technology Strategies (COMP7310), in the Graduate Studies Select program, Australian National University (first run July 2009).

The notes were first published as an electronic and paperback book in 2009 (Green ICT, Tom Worthington, Tomw Communications, 2009). Students can download or print their own copy of the e-book from the course learning management system, which is likely to be more up to date.

Green Technology Strategies: Using computers and telecommunications to reduce carbon emissions by Tom Worthington is licensed under a Creative Commons Attribution-Share Alike 2.5 Australia License, except for institutions covered by a Copyright Agency Ltd Statutory Licence.