The method applies to projects where goods, services and information designed to reduce greenhouse gas emissions from energy consumption are offered to a large number of small energy users.The method is technology and activity neutral, providing flexibility for participants to determine what activities are most appropriate for their project. Activities that could be undertaken to reduce greenhouse gas emissions from energy consumption by small energy users under the method include:
changing behaviour associated with energy use by, for example, changing space heating and cooling settings or limiting shower length to reduce hot water usageupgrading equipment that uses energy such as lighting, water heating, space heating and cooling, as well as appliances and whitegoods, andchanging building elements that influence energy use, including changes to the building shell such as windows and insulation.
Projects could involve facilitating changes of this kind directly, for example by installing new equipment, or indirectly, by providing information to small energy users on the benefits of energy-saving activities. For example, an eligible project using this method could involve an energy retailer sending advice on how to reduce energy consumption to a group of its customers.Participants who could use this method include energy retailers, energy distribution networks, aggregators with access to metering or billing data, or a combination of these. The method is well suited to activities where energy savings are small on a site-by-site basis, as these savings are aggregated over a large number of sites in the treatment group. The method also allows emissions reductions from multiple populations to be aggregated within a single project.
1.1.1 Commercial buildings
The commercial buildings method allows for projects that reduce emissions associated with the consumption of electricity or fossil fuels at a commercial building.
The method applies to activities to improve the energy performance of at least one star in the NABERS energy rating for each building, in one or more existing commercial buildings that have, or are eligible to have, National Australian Built Environment Rating System (NABERS) energy ratings.
The method does not specify the particular activities that must be undertaken, but requires that the activities fall under the following broad categories:
modifying, installing, removing or replacing:energy-consuming equipmentequipment that generates electricity for consumption at the buildinga building component or other equipmentchanging how energy-consuming equipment is controlled or operatedchanging the energy sources used by energy-consuming equipment, andpromoting behaviours by occupants of the building that reduce energy consumption by energy-consuming equipment at the building.Method
126.96.36.199 Commercial & public lighting
The commercial and public lighting method credits emissions reductions from projects that improve the energy performance of lighting systems in commercial and industrial buildings, as well as public areas, such as pedestrian, street and traffic lighting. By improving existing lighting systems less electricity is consumed and emissions associated with the generation of electricity are reduced.
The commercial and public lighting method supports a broad range of activities which may modify, replace or supplement a lighting system for the purpose of decreasing electricity usage of that system as a whole.
The method requires that the activities fall under the following broad categories:
modifying or replacing illumination equipment (such as lamps and ballasts)installing lighting control systems (such as motion sensors, sensor lights, and programmable and manual dimmers), which affect the way lighting systems consume electricity, and installing equipment that generates electricity for direct use by the lighting systems (such as integrated photovoltaic luminaire units).
The industrial electricity and fuel efficiency method sets out the detailed rules for implementing and monitoring offsets projects that reduce emissions of greenhouse gases associated with the consumption of electricity and/or fossil fuels in the industrial sector. It provides a high-level, activity-neutral framework where participants calculate abatement from industrial energy (i.e. electricity and fuel) efficiency activities. This approach provides flexibility for participants to determine what activities are most appropriate for each site.
Projects established under this method may include replacement or modification of boilers or heating, ventilation and air conditioning (HVAC) systems, improving control systems and processes, waste heat capture and re-use, improving the efficiency of crushing or grinding equipment on mining sites, replacing low efficiency motors, fans and pumps with high efficiency versions, installing variable speed drives (VSDs), improving compressed air processes, and fuel switching.
Participants who may use the method include owners or operators of (large-scale) energy intensive equipment. Well-designed projects undertaken under the method could potentially lower energy costs and improve productivity, while lowering emissions.
This method includes two sub-methods which provide options for calculating the emissions abated by an implementation. Sub-method 1 calculates the total amount of abatement over a reporting period by comparing modelled baseline emissions levels with project emissions calculated from measurements of fuel and/or electricity. Sub-method 2 calculates the total amount of abatement delivered by comparing project emissions from an operating emissions model to baseline emissions from a baseline emissions model.
2 Facility method
The facilities method provides a high-level, activity-neutral framework to calculate abatement from facilities that report under the National Greenhouse and Energy Reporting (NGER) scheme. This method can only be used by facilities that have submitted NGER reports.
Projects established using the facilities method may include one or more of the following activities:
replacing or modifying boilersimproving control systems and processeswaste heat capture and re-useupgrading turbinesimproving the efficiency of crushing or grinding equipmentreplacing low efficiency motors, fans and pumps with high efficiency versionsinstalling variable speed drivesimproving compressed air processesreducing industrial process emissionsbehavioural changesinstalling low emissions-intensity electricity generation equipment, andfuel switching.
To register a project using the facilities method you must include a statement of activity intent. The statement of activity intent provides information that project abatement activities, identified at the time that the statement is made, would not have been implemented at the facility if it was not being undertaken as an Emissions Reduction Fund project. A statement should be provided for each facility covered by the project.
The statement can be signed by the Chief Financial Officer or another officer of the person who has the operational control over the facility. If the statement is signed by an officer other than the Chief Financial Officer at the time the project application is received, emissions reductions for the facility will be capped at 100,000 tonnes of carbon dioxide equivalent (tCO2-e) for the year.
A statement of activity intent signed by the Chief Financial Officer can also be provided after project registration. This would occur where an officer other than the Chief Financial Officer signed the statement but the facility would like to have the abatement limit of 100,000 tCO2-e removed.
The facilities method has a seven year crediting period.
3 Landfill / waste treatment
3.1 Landfill gas
The landfill gas method provides an incentive to install a new landfill gas collection system, upgrade an existing system or recommence operation of a system at a site where one has existed before but not operated for some time. Credits can be earned for waste accepted at the landfill facility after 30 June 2014.
The method allows for new, recommencing, upgrade and transitioning projects.
New projects are those that install a new landfill gas collection system where there has never been a system located on any part of the landfill previously.Recommencing projects are those that recommence operation of a landfill gas collection system at a site where a system previously operated, providing that both:a landfill gas capture system has not operated at the landfill after 24 April 2014, anda landfill gas capture system has not operated at the landfill for at least three years before an application for the project as an eligible offsets project is made.Upgrade projects are those that upgrade an existing and operating landfill gas collection system to increase the collection efficiency of the system. There are no restrictions on the type of activities that can be undertaken to improve the existing system's collection efficiency. Examples include upgrading the way landfill gas is collected by adding more wells, upgrading the capacity of the combustion devices or installing new software for optimising the operation of the system.
3.1.1 Alternative waste treatment
The alternative waste treatment method provides an incentive to develop new alternative waste treatment (AWT) facilities, or expand existing AWT facilities to increase the capacity of waste that can be processed.
AWT describes a range of activities that process mixed solid waste, waste that would have gone to landfill, into products (such as compost, fuel or biogas) and increase recovery of resources including plastics, glass and metals.
The method allows for new, expansion and existing projects.
New projects involve the construction of a new AWT facility to process eligible waste that would have gone to landfill and uses eligible waste treatment technology.Expansion projects involve increasing the capacity of eligible waste that an existing AWT facility is able to process. To have a project declared eligible you must have 24 months of evidence to determine the historic quantity of eligible waste processed (the baseline).Existing AWT projects can transition to the new method and continue to generate emissions reductions for processing waste that would have gone to landfill.
188.8.131.52 Wastewater treatment method
This method sets out the requirements for implementing and monitoring offsets projects that avoid emissions by capturing and combusting the methane generated by wastewater treatment. This method credits destruction of methane generated from domestic, commercial or industrial wastewater. Industrial wastewater does not include wastewater generated during primary production (for example, piggery or dairy manure), but instead covers wastewater generated during the processing of primary products (for example, processing of pork or milk).
The method provides an incentive for wastewater operators to replace deep open anaerobic lagoons with anaerobic digesters. Projects can earn credits in the form of ACCUs for the combustion of methane generated from treating eligible wastewater in the anaerobic digester.
The domestic, commercial and industrial wastewater method was varied in June 2015. The method must be read together with the methodology determination variation, which provides details on the changes.
4 Mining, oil & gas
4.1 Coal mine waste gas
The coal mine waste gas method provides an incentive to implement new methane destruction activities or expand upon existing activities.
The destruction (through combustion or oxidation) of the methane component of coal mine waste gas, which chemically converts most of the methane to carbon dioxide, can achieve substantial emissions reductions. The predominant types of methane capture and destruction technologies deployed in Australia include:
methane capture and destruction devices, which are used to produce electricity, andflaring devices, which incorporate technologies that combust methane for purposes other than producing energy.
During coal mining activities, as coal beds are excavated, trapped coal mine waste gas is released from the coal and surrounding geological strata into the atmosphere.
Coal mine waste gas can be drained from behind the worked coalface through strategic drilling whereby the gas is extracted before the area is mined (commonly known as pre-mine methane drainage), or it may be mixed with air in the mine to lower the concentration of methane released as coal is extracted and then removed from the mine through ventilation (known as ventilation air methane).
4.1.1 Oil & gas fugitives
The oil and gas fugitives method applies to facilities that have fugitive emissions from oil or gas, including coal seam gas extraction facilities, liquid natural gas processing facilities, gas pipelines and oil refineries. The method provides for facilities to reduce their emissions through re-routing fugitive emissions to a flare instead of allowing them to be vented to the atmosphere.
Abatement from a re-route to flare project under this method is credited based on the quantity of emissions reduced from combusting the re-routed gas. This abatement activity caters for both process venting and fugitive leak emission sources.
5 Transport methods
5.1 Aviation transport
The transport – aviation method provides for crediting emissions reductions by comparing the emissions intensity of an aircraft before and after the implementation of an ERF project. Emissions reductions for an aircraft are calculated for each phase on a route of that aircraft and then aggregated.
The method is 'activity neutral' to support a broad range of activities to reduce emissions within aviation, including:
modifying existing aircraftchanging energy sources (that is, fuel switching) or the mix of energy sources for aircraft, orchanging operational practices in relation to aircraft.
To allow for different types of emissions reduction activities to be implemented, the method allows participants to choose different service units to measure the emissions intensity of an aircraft, depending on the phase of an aircraft's operation. For example, when an aircraft is in transit (that is, waiting at the gate) emissions per hour or emissions per route could be used to measure intensity, whereas when the aircraft is in the cruising phase (flying), emissions per passenger hour or tonne hour could be used. Importantly, once chosen, the service units for measuring emissions reductions for an aircraft must be retained throughout the whole project for that aircraft.
Project abatement is the aggregate of emissions reductions from all aircrafts in the project.
5.1.1 Land & sea transport
The land and sea transport method provides for crediting emissions reductions from road, rail and sea transport, and mobile equipment such as mining and agricultural vehicles. It excludes air transport.
The method is 'activity neutral' to support a broad range of activities to reduce emissions intensity within the transport sector, including:
replacing existing vehiclesmodifying existing vehicleschanging energy sources (that is, fuel switching) or the mix of energy sources, orchanging operational practices.
This method includes two general project types to provide flexible options for different transport businesses and participants.
A group of vehicles project credits emissions reductions from a group of vehicles. The group of vehicles can be made up of sub-groups, where each sub-group is made up of all vehicles in a vehicle category within a business unit or transport operation. Emissions reductions are credited against a historically-derived emissions intensity baseline, which for some vehicle categories will decline over time. Emissions reductions from each sub-group are then aggregated. This type of project is likely to be suitable for participants who do not have data disaggregated to the level of individual vehicles such as public or hire fleets and logistics companies.An aggregated individual vehicles project credits emissions intensity reductions achieved by individual vehicles. The baseline emissions intensity is tailored to the vehicle and activity being undertaken and is generally based on historically-derived data. Emissions reductions from multiple individual vehicles are then aggregated. This sub-method is likely to be suitable for participants with disaggregated, vehicle-specific data, such as rail and shipping operations.