displaces over a set time period. Renewable Energy Target (RET) renewable energy target (LRET) Generation Certificates (LGCs) LGCs are created based on the amount of eligible renewable electricity produced by a power generator. They can be sold or traded to the voluntary market, for example GreenPower, or to Renewable Energy Target liable entities to assist them in meeting their obligations. Behind-the-meter energy usage originating from large-scale onsite systems that have been issued LGCs can be treated as energy only if the equivalent amount of LGCs are voluntarily retired by the responsible entity (or energy user). Behind-the-meter energy usage that is not matched by an equivalent amount of voluntarily retired LGCs must be accounted for in the same way as energy, and offset accordingly. LGCs do not have to be retired for energy generated by the system that is exported into the grid, as the exported energy is not being accounted as zero- emissions energy as part of the responsible entity's carbon account. Renewable Energy Target GreenPower GreenPower is a voluntary program that enables electricity providers to purchase renewable energy on behalf of households or businesses using the same mechanism of voluntary LGC retirement, as described above. The purchase of GreenPower is considered to be equivalent to the direct use of renewable energy. GreenPower uses the same mechanism of voluntary retirement of LGCs described above.
The Emission Reduction Fund (ERF) Australian Carbon Credit Units (ACCUs) The ERF is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. Participants can earn ACCUs for emissions reductions. The can be sold to the Commonwealth under a carbon abatement contract with the Clean Energy Regulator, or they can be sold on the voluntary market and are eligible as offset units under the National Carbon Offset Standard. Responsible entities generating ACCUs from emissions reduction projects occurring within their boundary can claim the reduction as part of their carbon account only if the ACCUs from the projects are voluntarily retired. If the ACCUs are not retired, responsible entities are required to account for their emissions without the reductions associated with the projects (i.e. as though the projects had never occurred). State-based energy efficiency schemes, including the Victorian Energy Efficiency Target (VEET), the New South Wales Energy Savings Scheme (ESS) and the South Australian Retailer Energy Efficiency Scheme. Energy Efficiency Certificates These energy savings schemes reduce electricity consumption by creating financial incentives for organisations to invest in energy savings projects. Energy savings are achieved by installing, improving or replacing energy savings equipment. This generates tradable white certificates. Responsible entities are not required to account for state-based energy efficiency schemes. Emissions reductions resulting from activities supported by these schemes can be counted towards the carbon account regardless of whether any associated certificates have been created, sold or transferred to any other party. Worked examples Note that the following notations and assumptions have been used in the examples presented below: 1. BTMuse = Behind the electricity consumed 2. Grid factor (scope 2) - simplified to 1t CO2-e/MWh
ACCUs 50 ACCUs Total emissions 100 t CO2-e Note The corresponding amount of emissions represented by the sold must be added back to the carbon account. Recommended practices and tools Additional guidance for preparing a carbon account Requirements for preparing a carbon account against any category of the National Carbon Offset Standard are detailed in Section 2.3. Additional guidance below relates to Step 4 (Collect data) and Step 5 (Calculate the carbon account) in Section 2.3. 3.1.1. Data collection In most cases, primary data should be collected for all relevant processes included within the defined emissions boundary. Section 2.3.4 provides a detailed description of the requirements for collecting data relevant to identified emissions sources. Steps to preparing a carbon account: Step 1: Establish the emissions boundary Step 2: Identify greenhouse gas emissions sources within the boundary Step 3: Set a base year Step 4: Collect data on identified emissions sources Step 5: Calculate the carbon account Examples of primary data include: Scope 1 emissions: direct emissions data determined through direct monitoring, stoichiometry, mass balance or similar methods, or modelled emissions data based on purchased quantities (invoices) of commercial fuels such as natural gas, diesel, unleaded petrol and LPG. Scope 2 emissions: metered electricity or steam consumption, or data based on purchased quantities (invoices). 3 emissions: invoiced contractor fuel use, employee air travel reports, invoices for the purchase of paper. Data collection can be one of the most resource intensive steps in the development of the carbon account. In addition, the robustness of the data collection process can have a significant impact on the overall carbon account quality. Knowledge of the responsible entity's data management systems and discussion with appropriate internal data custodians are important to ensure efficient and successful data collection. The responsible entity should consider what methodologies and emission factors are available, and choose the type of data based on the expected accuracy of the results and the ease of calculation. Consideration should be given to whether the data would need to be converted, and if so, how many times this would need to be done, as this would likely decrease the accuracy of the carbon account.