Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Hansard source

I present a supplementary memorandum to the bill and—by leave—I move government amendments (1) to (6) as circulated together:

(1) Clause 2, page 2 (table), omit the table, substitute:

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Schedule 4, page 49 (after line 1), after the heading, insert:

Part 1 — Amendments commencing day after Royal Assent

(3) Schedule 4, page 49 (after line 3), before item 1, insert:

1A Section 5

Insert:

carbon estimation area, in relation to an area-based offsets project, has the meaning given by the applicable methodology determination for the project.

(4) Schedule 4, page 49 (after line 27), at the end of the Schedule, add:

6 After subsection 106(4)

Insert:

(4AA) The Minister must not make a methodology determination unless the Minister is satisfied that the determination complies with the offsets integrity standards.

7 After subsection 114(2)

Insert:

(2AA) The Minister must not vary a methodology determination unless the Minister is satisfied that the varied determination complies with the offsets integrity standards.

(5) Schedule 4, page 49, at the end of the Schedule (after proposed item 7), add:

8 After Divis ion 4 of Part 12

Insert:

Division 4A — Information about Australia's international obligations

166A Information about Australia's international obligations

(1) The Regulator must publish on the Regulator's website any information that is:

(a) held by the Regulator; and

(b) specified in the legislative rules for the purposes of subsection (2).

(2) The legislative rules may specify information that is relevant to Australia meeting its obligations under any or all of the following:

(a) the Climate Change Convention;

(b) the Kyoto Protocol;

(c) the Paris Agreement;

(d) any other international agreement.

9 Paragraph 168(1)(b)

Omit "the project area or project areas; and", substitute:

the following:

(i) the project area or project areas;

(ii) the carbon estimation area, or carbon estimation areas, for the project; and

10 Subsection 168(2)

Repeal the subsection.

11 Subsection 168(2A)

Omit "of this section".

12 Section 169

Repeal the section.

13 Section 240 (table item 21)

Repeal the item.

14 Application and transitional provisions

Definitions

(1) In this item:

Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.

commencement means the commencement of this item.

existing project means an area-based offsets project that, at commencement, is an eligible offsets project because of a declaration made before commencement.

grace period means the 30-day period beginning at commencement.

grace period request, in relation to a carbon estimation area, means a request made within the grace period in relation to the carbon estimation area under subsection 169(1) of the Act as continued in force and modified by subitem (6) of this item.

Register not to set out certain project areas

(2) Despite the repeal of section 169 of the Act made by this Schedule, the Emissions Reduction Fund Register must not set out the project area or project areas for an area-based offsets project if:

(a) immediately before commencement, the Emissions Reduction Fund Register did not set out the project area or project areas because the Regulator had granted a request under that section in relation to the project area or project areas; or

(b) the Regulator grants a request of a kind referred to in subitem (3) or (4) of this item in relation to the project area or project areas.

Pending requests relating to project areas

(3) Despite the repeal of section 169 of the Act made by this Schedule, that section (as in force immediately before commencement) continues to apply, after commencement, in relation to a request under that section that has not been finally determined at commencement.

Requests relating to project areas made within grace period

(4) Despite the repeal of section 169 of the Act made by this Schedule, the project proponent for an existing project may, within the grace period, make a request under subsection 169(1) (as in force immediately before commencement) in relation to the project area or project areas for the project.

Register not to set out certain carbon estimation areas

(5) Despite the amendment of section 168 of the Act made by this Schedule, the Emissions Reduction Fund Register must not set out the carbon estimation area or carbon estimation areas for an existing project if:

(a) the grace period has not ended; or

(b) the project proponent for the project makes a grace period request in relation to the carbon estimation area or carbon estimation areas and the request has not been finally determined; or

(c) the project proponent for the project makes a grace period request in relation to the carbon estimation area or carbon estimation areas and the Regulator grants the request.

Grace period requests in relation to carbon estimation areas

(6) Despite the repeal of section 169 of the Act made by this Schedule, that section (as in force immediately before commencement) continues to apply, during the grace period, in relation to an existing project as if a reference in that section to the project area or project areas for the project were also a reference to the carbon estimation area or carbon estimation areas for the project.

(7) A decision of the Regulator to refuse a grace period request in relation to the carbon estimation area or carbon estimation areas for a project is taken to be a reviewable decision for the purposes of the Act.

Extension of time f or considering requests made within grace period

(8) If the project proponent for an existing project makes a request that is:

(a) a request of a kind referred to in subitem (4) in relation to the project area or project areas for the project; or

(b) a grace period request in relation the carbon estimation area or carbon estimation areas for the project;

subsection 169(3) of the Act (as continued in force by subitems (4) and (6) of this item) has effect, in relation to the request, as if the reference in that subsection to 30 days were instead a reference to 60 days.

(6) Schedule 4, page 49, at the end of the Schedule (after proposed item 14), add:

Part 2 — Amendments commencing later

Carbon Credits (Carbon Farming Initiative) Act 2011

15 Section 5

Insert:

paid work means work for financial gain or reward (whether as an employee, a self-employed person or otherwise).

16 Subsections 257(3) and (4)

Repeal the subsections.

17 After subsection 257(6)

Insert:

(6A) The Chair of the Emissions Reduction Assurance Committee holds office on a full-time basis.

18 Subsection 257(7)

After "member", insert "(other than the Chair of the Emissions Reduction Assurance Committee)".

19 Section 263 (after the heading)

Insert:

(1) The Chair of the Emissions Reduction Assurance Committee must not engage in paid work outside the duties of the Chair of the Emissions Reduction Assurance Committee without the Minister's approval.

20 Section 263

Before "An", insert "(2)".

21 Section 263

After "member", insert "(other than the Chair of the Emissions Reduction Assurance Committee)".

22 Subsection 265(1)

Repeal the subsection, substitute:

(1) The Chair of the Emissions Reduction Assurance Committee has the recreation leave entitlements that are determined by the Remuneration Tribunal.

(1A) The Minister may grant the Chair of the Emissions Reduction Assurance Committee leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.

23 Paragraph 267( 2)(c)

Repeal the paragraph.

24 Subsection 267(3)

Repeal the subsection.

25 At the end of section 267

Add:

(5) The Minister may terminate the appointment of the Chair of the Emissions Reduction Assurance Committee if the Chair of the Emissions Reduction Assurance Committee engages, except with the Minister's approval, in paid work outside the duties of the Chair of the Emissions Reduction Assurance Committee's office (see subsection 263(1)).

(6) The Minister may terminate the appointment of an Emissions Reduction Assurance Committee member (other than the Chair of the Emissions Reduction Assurance Committee) if the member engages in paid employment that conflicts or may conflict with the proper performance of the member's duties (see subsection 263(2)).

The ACCU scheme has an important role to play in Australia's pathway to net zero emissions by 2050. It incentivises emissions reductions and sequestration that otherwise wouldn't occur. The government commissioned the independent review of ACCUs to ensure ACCUs are and are seen to be of the highest integrity. The independent panel concluded that ACCU scheme arrangements are sound and that there are appropriate checks and balances at the scheme, method and project level to protect the integrity of the scheme and the credits created under it. The panel recommended some sensible changes to align with evolving best practice and increase public confidence in the scheme, supporting more participation and increased abatement.

Key recommendations include separating the key functions of integrity assurance, regulation and administration; maximising transparency of scheme information to increase trust; fostering innovation in methods and project implementation; and supporting greater participation, including by First Nations communities. The government has accepted in principle all 16 recommendations and is working to implement immediately key recommendations which don't require further consultation with stakeholders. I've already revoked the avoided deforestation method so that no new projects can be registered under that method, implementing recommendation 9 of the review.

Today I'm introducing government amendments to the Safeguard Mechanism (Crediting) Amendment Bill 2022 which will enact some of the recommendations of the ACCU review. These are legislative changes to the Carbon Credits (Carbon Farming Initiative) Act 2011 that will increase transparency and robustness of the scheme while we continue to consult on the implementation of other recommendations. These recommendations will: require publication of carbon estimation area information and other information prescribed by the rules, recommendation 4.1; require the minister to be satisfied that a methodology determination or a varied methodology determination complies with the offsets integrity standards before the minister can make or vary the determination, recommendation 5.22; and change the Emissions Reduction Assurance Committee, ERAC, chair's position from part time to full time, recommendation 2.1—consistent with the recommendations of the review. I will appoint a full-time chair and a First Nations member of ERAC through an open and transparent process. The government will also establish an independent secretariat, reporting directly to the chair once they're appointed.

These amendments will strengthen the integrity of the ACCU scheme, increasing transparency by requiring additional information to be published. It will assure integrity by clarifying my considerations, or those of the minister of the day, when approving methods and it will improve the capacity of the integrity committee to scrutinise methods while we consult on broader changes to the governance arrangements. The government will work with stakeholders on implementation of other recommendations that have implications for a wide range of the scheme, market participants, government agencies and other stakeholders. An implementation plan which sets out the time frames and approach to implementation will soon be released.

This is just the first part of the legislative changes required to implement the ACCU review. We plan to introduce a more substantial package of amendments later in 2023 following consultation with stakeholders, who call for further consultation and opportunities to analyse the key positions and outcomes of the review. I commend the amendments to the House.

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