Presentation about buy-back and transfer of units (PPTx 515 kB)

Industry Briefing
Buy-Back and Transfer of Units
Clean Energy Regulator
August 2012
Focus of today’s briefing
• An overview of the Carbon Pricing Mechanism
• JCP and ANREU applications
• A practical demonstration of:
• Buy-back transaction
• Transfer transaction
• This presentation will not address:
• Specific eligibility criteria for JCP applications
• Discussion regarding specific circumstances (Commercial in
Background – Carbon Pricing Mechanism
• The Clean Energy Regulator was established on
2 April 2012
• Carbon pricing mechanism commenced 1 July 2012
• Stage 1 Fixed price period
• From now to 30 June 2015
• Fixed price for each tonne of covered emissions
• Stage 2 Flexible price period
• Commencing 1 July 2015 to 30 June 2018
• Transition to a market based emissions trading
• ‘Flexible’ price will be set by the market
Carbon pricing mechanism: coverage
• commenced 1 July 2012
• covers around 300 largest emitters
• covers 60% of emissions
• covered - stationary energy, non-legacy waste, industrial
processes, fugitive emissions
• not covered - agriculture, transport, landfill legacy, closed landfill,
decommissioned mines, synthetic gases, biomass, biofuel and
Carbon pricing mechanism: liable entities
Liability restricted to those entities with:
• operational control of facility
• emissions threshold of 25,000 tCO2-e
• or supply natural gas
• or use natural gas
• Scope 1 emissions
Purpose behind the JCP
To provide ongoing assistance to companies that produce a
lot of carbon emissions, but are constrained in their capacity
to pass through costs in global markets.
Liable entities
The carbon pricing
mechanism applies to
Australia’s largest emitters
Incur direct or
indirect costs
Form of JCP assistance
Free carbon units are issued to eligible applicants through
Carbon units have some general features:
• Vintage year of unit means a particular financial year.
• They are personal property and legally owned by the
registered holder.
• Transferable between ANREU accounts.
• Defined as a financial product.
• Have cancellation or relinquishment requirements under
the Act.
Definition of EITE activities
• The definition of eligible EITE activities and a full list of EITE
activities can be found in Part 3 of Schedule 1 of the Regulations.
• There are currently over 40 eligible EITE activities in the
Part 3 of Schedule 1 of Regulations contains:
Definition of activity.
Classification of activity (highly/moderately emissions intensive).
Baselines for activity.
For activities not currently included
Contact the Department of Climate Change and Energy
Efficiency (DCCEE) website at
See the “Jobs and Competitiveness Program” section under
“A-Z of Government Initiatives”.
Only DCCEE can initiate a preliminary assessment of
T: 1800 018 831
E: [email protected]
How to apply for free carbon units under JCP
1. Ensure eligibility.
2. Use the prescribed form for the application.
3. Ensure the application is correct and complete.
4. Submit application by 31 October of the relevant financial
Please see video-on-demand for further information:
Eligibility to apply for free carbon units
Part 5 of Schedule 1 of the Regulations details the eligibility
An eligible person may be:
• the legal person who had operational control of the facility; or
• a legal person who was a participant in a joint venture that operated
the facility; or
• the holder of a liability transfer certificate in relation to the facility.
Shared eligibility – more than one eligible person
• Must lodge combined application
Assessment of application by the Clean Energy
Timeframe for processing by Clean Energy Regulator:
Completed applications – within 60 days of receipt
The Clean Energy Regulator may seek further information to
support your application
Pre-requisites must be completed:
Audit report
Statutory declaration
ANREU account
Calculating the number of free carbon units
Calculation formula:
Refer to Part 9 of Schedule 1 of Regulations.
In general, the calculation of assistance involves an allocation
for direct emissions, electricity use and natural gas
Adjustments for previous year’s allocation and special
arrangements may apply.
Industry roles & responsibilities
• Apply (separately) for:
• ANREU Account
• JCP and other types of free carbon units
• Manage Accounts (Authorised Account Representative)
• Buy-back and transfer units
ANREU account creation
To create an ANREU account
• visit the Clean Energy Regulator website for the form
• Separate forms depending on your situation
• A further form is available for bank account details
Account creation – key points
• Identity documentation must be certified by an authorised person
• Applications will not be processed until all relevant certified identity
documentation has been supplied and verified
• Only nominated Authorised Representatives are issued a USERID and
password to logon to system
Buy-back of free carbon units
• Holders of free carbon units can sell them to the Clean
Energy Regulator
• Alternatively you may wish to transfer these units to
another ANREU account or use them to meet your end of
year liability
• Applies to units issued under JCP
• Applies to Coal-fired Generators Package (commencing
in 2013)
Buy-back of free carbon units
• Buy-back price is discounted based on:
• RBA triple B corporate bond rate, and
• the number of days before 15 June
• Daily buy-back price of a carbon unit to be published on
the Clean Energy Regulator website
• Bank details must be provided to process payment
Buy-back of free carbon units - cont
• A buy-back must be completed by an Authorised Account
Representative; Initiator and Approver
• Free carbon units are cancelled if not surrendered or
bought-back by 1 February following the vintage year
• Payments are processed by the Clean Energy Regulator
within five business days
Transfer of units
• Units must be available for transfer from the source
• For transfer to occur, a receiving account must be
• A Transfer must be completed by an Authorised Account
Representative; Initiator and Approver
Future Capability
Similar processes will be followed for future transactions
• Purchase of carbon units
• Surrender of carbon units
• Shortfall management
More information
T: 1300 553 542
E: [email protected]
ANREU Shaun Calvert 02 6159 3398
E: [email protected]
Jobs and Competitiveness Program Kim Collins 02 6159 3942
E: [email protected]

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