Carbon Farming Initiative workshop: from Plan to Practice slides - - PDF document

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Carbon Farming Initiative workshop: from Plan to Practice slides - - PDF document

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Carbon Farming Initiative workshop: from Plan to Practice slides Landfill capture and combustion of methane 2013 These slides are also available in PDF format on the Clean Energy Regulator website 1 . 1

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Carbon Farming Initiative workshop: from Plan to Practice – slides

Landfill – capture and combustion of methane 2013

These slides are also available in PDF format on the Clean Energy Regulator website1.

1 http://www.cleanenergyregulator.gov.au/Carbon-Farming-Initiative/Reports-and-

publications/Pages/default.aspx

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Welcome

  • Introductions
  • Housekeeping

Workshop purpose

  • Support your participation
  • Help you to understand what's involved

Introduction

Purpose:

  • Understand Clean Energy Regulator’s role
  • Understand key concepts behind the Carbon Farming Initiative’s design

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. Other government organisations Three government organisations have a role in the Carbon Farming Initiative:

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Department of Agriculture, Fisheries and Forestry Provides information and support for landholders and funds research Department of Industry Development of policy, legislation and methodologies Clean Energy Regulator Assessment of projects, education, issue of Australian carbon credit units Video: how the Carbon Farming Initiative works View the video, how the Carbon Farming Initiative works2, on YouTube. 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 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 (CO2-e).

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

2 http://www.youtube.com/watch?v=uBj7xc3ZKWg

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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. 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 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 Why participate? Direct financial benefits, through selling ACCUs on the carbon market. Other benefits:

  • Reduce or offset liability under the carbon pricing mechanism
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  • Generate base load electricity and create renewable energy

certificates

  • Watch example project video – no longer available

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 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.

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

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

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Question and answer panel

  • Introduction to Carbon Farming Initiative and Clean Energy Regulator
  • What does a project look like?
  • Measure and calculate abatement
  • Audit

Administration: working with the Clean Energy Regulator

Purpose:

  • Understand three key administrative steps involved with Carbon Farming Initiative

projects Three important parts to your administration

  • 1. Recognised Offsets Entity
  • 2. Eligible Offsets Project
  • 3. Certificate of Entitlement

Download application forms from the Clean Energy Regulator website. There are no application fees. 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
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Tip: call us before you submit your application to make sure it’s all in order: (02) 6159 3434 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.

Eligible Offsets Project: 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.

Eligible Offsets Projects: Q12 Project description

  • Confirm regulatory baseline in project description.
  • Show calculations using CFI Landfill Methane Regulatory Baseline Calculator3.
  • Confirm % of abatement required by law and show regulatory additionality.

Eligible Offsets Projects: Q22 Regulatory approvals

  • Appropriate to your situation
  • State, local government
  • Any exemptions?

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.

3 use of this calculator is not a mandatory requirement

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  • Good record keeping is essential to your report and audit.

Summary: three important parts to your administration

  • 1. Recognised Offsets Entity
  • 2. Eligible Offsets Project
  • 3. Certificate of Entitlement

Carbon Markets and feasibility

Purpose:

  • Understand the basics of ACCU markets to enable you to ask questions of your

advisors

  • Provide you with tips to consider when undertaking your feasibility

Types of markets

  • ACCUs are personal property and can be traded.
  • Two key markets:

» Domestic compliance market » Voluntary market Characteristic Kyoto ACCUs Kyoto project Non-Kyoto (eligible) Kyoto Project Non-Kyoto (voluntary) Non-Kyoto project Can be surrendered under the carbon pricing mechanism Yes Yes No Able to be sold on the voluntary market Yes Yes Yes Able to be converted or exchanged for international emissions units Yes No No

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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 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) 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?
  • 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
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  • Cash flow
  • Scenario analysis
  • 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)

Case Study: Lived experience of the Carbon Farming Initiative

Purpose: understand what’s involved from the perspective of a scheme participant Presenter: Nicole Webb, Veolia Environmental Services (Australia Pty Ltd) Turning waste into a resource Carbon Farming Initiative Veolia Environmental Services Carbon Farming Initiative (“CFI”)

  • Industry perspective on implementing the CFI
  • CFI Mindset
  • Determinations
  • Registration
  • Record Keeping Process
  • 1. CFI Mindset

Cost benefit analysis of income against costs

  • New Methodology development
  • Financial type audits
  • Future changes to the site
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Documentation Contributed to by:

  • Project Manager
  • Company Secretary
  • Legal team
  • Site – manager, maintenance, data collection
  • Supplier invoices - procurement team, accountant
  • NGER Reporting

Demand

  • 300 Liable entities, some free credits pre-sold
  • Note: NGER Scope 1 emissions > Covered emissions
  • 2. Determinations
  • 11 approved CFI Methodology Determinations
  • Capture and Combustion of Methane in Landfill Gas from Legacy Waste (“Landfill Det”)
  • Capture and Combustion of Methane in Landfill Gas from Legacy Waste: Upgrade

projects (“Upgrade Det”)

  • Plus others for diverting – NRS composting, SITA Fuel, Coffs Harbour – legacy waste
  • nly
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Eligibility Landfill Determination

  • GF projects
  • GGAS projects
  • Installed landfill gas system after 1 Jul 2010

Upgrade Determination

  • Cities for Climate Protection
  • Installed landfill gas system 1 Jul 2007 - 1 Jul 2010
  • Upgraded after 1 Jul 2010 an existing landfill gas system
  • 3. Registration

Timeline

  • Develop Methodology and Methodology Determination, DOIC meeting schedule, Dept

drafting (approx. 90-365 days)

  • Registration evidence gathering (approx. 30-90 days)
  • Submitted and Awaiting Declaration (approx. 60-100 days)
  • Registered

Registration

  • Recognised Offsets Entity
  • Contactable person (not CEO)
  • Land Title
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Registration

  • Government regulatory approvals
  • Legal Right
  • Start date
  • Project Description

» Prove eligibility » Record keeping plans » Baseline

  • 4. Record Keeping Process

Raw data

  • Internal combustion engine

» kWh generated › ((kWh/ Eff) x 3.6) / 0.0000377 x 6.784 x 0.0001 x 21 = tCO2-e

  • Flare

» Flow » Methane % » Continuous measurement – daily average, monthly record › m3 x 6.784 x 0.0001 x 21 = tCO2-e

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Point of combustion Record keeping

  • Electricity Use

» Consider submeter

  • Fuel Use

» Broader than diesel e.g. natural gas, LPG, petroleum based greases & oils, petrol

  • Logs of operations

» All shut-downs, start-ups, process adjustments Keep Records for 7 years Record keeping process

  • Short-term Action Lists
  • Long-term integrated NGER & Operations & CFI Procedures for:

» Incoming waste » Landfill gas capture » Fuel Use » Electricity Use

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  • Streamlining & Automation: Reduce manual handling of data

Disclaimer

  • Veolia Environmental Services has made every reasonable effort to provide current,

complete and accurate information in this document. However it contains general information only and is not a substitute for obtaining specific advice.

  • The information provided in relation to the carbon pricing mechanism is based on the

best available information at the time of provision. The final information is subject to

  • change. The exact impact will vary depending on a number of factors including the final

legislation and each client’s particular circumstance.

  • Although VES have been very careful as to the source and preparation of the

information, VES disclaims to the extent permitted by law any representations and warranties, express or implied, of any kind in respect of the information; and will not be liable for any loss or damage whatsoever arising out of or in connection with any use of,

  • r reliance on the information.

Question and Answer panel

  • Administration: working with the Clean Energy Regulator
  • Carbon market and project feasibility
  • Case study

Thank you

Evaluation forms More Information

  • Clean Energy Regulator website4
  • Phone: 1300 553 542
  • Email: CFI@cleanenergyregulator.gov.au
  • Watch the webinar5
  • View webinar transcript6

4 www.cleanenergyregulator.gov.au 5 http://www.cleanenergyregulator.gov.au/Carbon-Farming-Initiative/events/Pages/From-Plan-to-Practice-

webinar-Landfill.aspx

6 http://www.cleanenergyregulator.gov.au/Carbon-Farming-Initiative/events/Pages/transcript-landfill-

webinar.aspx