Greenhouse News

The Federal Government has released updated draft regulations for the Carbon Pollution Reduction Scheme (CPRS).

The updated regulations include the second group of activities to be eligible for assistance under the emissions intensive, trade exposed (EITE) assistance program.  The updated draft EITE regulations include the following new activities that have been assessed as eligible for EITE assistance: aluminium smelting, alumina refining, cartonboard manufacturing, dry pulp manufacturing, high purity ethanol production, integrated lead and zinc production, magnesia production, packaging and industrial paper manufacturing, tissue paper manufacturing and printing and writing paper manufacturing.

The three key changes that have been made in the revised draft regulations are: the inclusion of a universal ‘true-up’ mechanism to more closely align permit allocations with production levels in each year; amendments to provisions relating to large electricity user certificates; and the inclusion of a provision to ensure that permits are not provided in excess of an entity’s direct and indirect emissions costs under the CPRS.

The draft regulations and commentary as well as the accompanying explanatory paper are available on the Department of Climate Change website at www.climatechange.gov.au

The Government has also today released draft regulations to deliver partial exemptions from Renewable Energy Target (RET) liability to all activities that would qualify for the EITE assistance under the CPRS.   The draft Renewable Energy Target (RET) regulations reflect the Government’s policy to provide assistance to eligible EITE activities for the additional cost impacts of the expansion of the RET.   The approach to determining partial exemptions under the RET is consistent with that applying under CPRS EITE assistance program where practicable, using information provided through that program’s reporting processes.

The draft regulations and accompanying commentary, along with details of the consultation process, are also available on the Department of Climate Change website at www.climatechange.gov.au

The Government is seeking feedback from stakeholders on the draft CPRS and RET regulations by Monday 11 January 2010.

Victorian councils, businesses, schools and service groups can apply for what the State Government describes as “substantial grants” for projects designed to help reduce greenhouse gas emissions.

Grants of up to $50,000 will be available under a $23 million Climate Communities Program which will fund projects of various sizes with two rounds of grants each year.

The projects will need to meet one or more of the key objectives:
- community abatement: involving reductions to greenhouse gas in addition to the CPRS cap;
- community resilience: programs that are implemented within the CPRS cap; and
- community innovation: programs that involve trialling new ideas for sustainable living in the energy, waste and transport sectors, and promoting their adoption in other communities.

The first round of applications will be opened in 2010 – further information will be available from Sustainability Victoria and grants will be supplied through the agency’s Sustainability Fund.

Victoria’s Premier, John Brumby, says much of the debate on action against climate change centres on the negative impact humans have had on climate. Mr Brumby says, however, his government wants to shift the focus onto the positive impact humans can have on climate.

The role of fossil fuels in a lower-carbon energy mix will be consolidated by a technology based partnership across the Asia Pacific, according to Federal Resources and Energy Minister, Martin Ferguson.

Mr Ferguson says the challenge of energy security means global demand for gas and coal will continue to rise and there is an urgent need to find the right technology to reduce the CO2 emissions generated.

The minister has told a joint conference of the Australia-Taiwan Business Council and the Republic of China-Australia Business Council that energy security in a carbon constrained global economy is the defining issue of the day.

He says Australia is working with its partners in the region to bring about a “broad suite of viable energy technologies” including carbon capture and storage technology on an industrial scale.

Mr Ferguson says even with the growth of renewable energy, fossils fuels will continue to play an important role in Australia’s energy security and economic prosperity. He says that is why the Federal Government’s $2 billion Carbon Capture and Storage Flagships program is so vital.

The Victorian Government has committed $2 million to the second stage of a carbon storage project in the Otway Basin. The funding is in addition to the $4 million provided for the first stage of the initiative.

During the first stage of the CO2 Cooperative Research Centre project, more than 60,000 tonnes of carbon dioxide was safely injected and stored in a depleted gas field two kilometres underground.

The behaviour of the CO2 continues to be monitored and State Energy and Resources Minister, Peter Batchelor, says the project is delivering world-class information.

Mr Batchelor says the initial success of the project has prompted plans for the expansion, which involves the injection of CO2 into saline geological formations via a second well.

The saline formations are considered among the most technically promising locations for CO2 storage, with the potential to store hundreds of years worth of emissions.

Mr Batchelor says the second stage of the Otway project has the potential to make a significant contribution to the development of CCS technologies that can be deployed globally on a commercial scale.