Carbon Pollution Reduction Scheme (CPRS)

UPDATED 5th May 2009

The Australian Federal Government has announced new measures which alter the draft Carbon Pollution Reduction Scheme (CPRS) legislation released earlier this year.  The legislation will be introduced when parliament resumes.  The measures include:

• Delaying the CPRS start date until June 2011
• A fixed carbon price of $10 per tonne of CO₂ equivalent for the first year
• A Global Recession Buffer for emisions-intensive trade-exposed (EITE) industries
• Funding for energy efficiency measures from July 2009
• A commitment to reduce carbon pollution by up to 25% of 2000 levels by 2020 (up from 15% in the original draft legislation)
• The establishment of the Australian Carbon Trust to assist households to directly reduce emissions

What do these measures mean for industry?

Companies now have more time to investigate, understand and minimise their business risk before CPRS begins.  One way of achieving this is to increase the accuracy of National Greenhouse and Energy Reporting System (NGERS) emissions reporting; another is to begin reducing emissions.  However nothing has changed with regard to immediate NGERS compliance requirements.  Emissions targets set when CPRS begins are expected to be tougher following this recent announcement, so abatement options and planning should be given more consideration sooner rather than later.  The assistance HRL Technology can offer your business is descibed below.

The original CPRS draft legislation

The Australian Federal Government has release an exposure draft of the CPRS bill, which describes its policy position on the proposed Carbon Pollution Reduction Scheme (CPRS).  Together with the White Paper released in December 2008, the exposure draft details the objectives of the scheme, the policy context, the framework of the scheme and the carbon market.  The scheme was scheduled to begin on 1 July 2010.  The documents also detail the proposed assistance for households, for emissions-intensive trade-exposed (EITE) industries and for strongly affected industries (SAI), which
are the coal-fired electricity generators.  Assistance to electricity generators will be via the Electricity Sector Adjustment Scheme (ESAS). 
 

Preparation and ongoing participation in CPRS

HRL Technology can assist with preparation and ongoing participation in the CPRS.  Under the CPRS the reporting of emissions, energy production or energy use will be via the National Greenhouse and Energy Reporting System (NGERS). HRL Technology offers a range of services for greenhouse reporting and greenhouse abatement under NGERS.

• Click here for further details

Potential assistance opportunites under CPRS 

HRL Technology offers a range of services to assist companies to calculate their potential assistance opportunities under the CPRS. 

Emissions-Intensive Trade-Exposed Industries (EITE)

• Preparation of preliminary and formal assessments for EITE eligibility
• Assessment of eligibility for compensation (determination of emissions, and whether thresholds are exceeded)
• Assistance with submission for compensation
• Assistance with the contents of submissions: ensuring accuracy and robustness of data collected and its analysis
• Third-party auditing of government submissions.

Strongly Affected Industries (SAI) (coal-fired electricity generators)

• Review of eligibility
• Assistance with submission, due within 90 days of the “commencement of Scheme legislation”, i.e. when the Act is passed in Parliament
• Calculation of potential assistance: ensuring accuracy and robustness of analysis of data
• Preparation of government submissions: the exposure draft Bill requires applications for assistance to be written by an independent and qualified person.

For both EITE and SAI, values of greenhouse gas emissions previously reported to various schemes (GGAS, Greenhouse Challenge Plus, GES, NGGI, WAGI, etc.) should be thoroughly reviewed, both to ensure accuracy and minimise uncertainty and to ensure that the correct amount of compensation is received. A review should include sources of data, calculation methodology and assumptions used.

Click here for more information on HRL Technology's Abatement Services

HRL Technology’s Credentials

HRL Technology’s main business is the provision of energy and environmental services to a wide range of industries, including power generation, manufacturing and minerals processing sectors.  HRL Technology has 10 years involvement in providing greenhouse services, ranging from assisting in the development of the Generator Efficiency Standards (GES) Program through to extensive experience with compliance under the NSW Greenhouse Gas Reduction Scheme (GGAS).