Australian Regulatory Compliance Review

Energy reporting streamlining

The Minister for Resources, Energy and Tourism, the Hon Martin Ferguson AM MP and the Minister for Climate Change, Senator the Hon Penny Wong have announced a review of the Energy Efficiency Opportunities Regulations 2006 . Proposed amendments aim to better streamline energy use reporting with the Australian Government's new National Greenhouse and Energy Reporting (NGER) System.

Amendments to the EEO Regulations will make it easier for EEO member companies to collect and report one set of energy use data, reducing potential duplication.

Most companies will not be affected by the changes. However, for those companies that may have different sets of energy use under each scheme, the amendments will

• reduce the compliance burden; and
• avoid duplicative reporting requirements

The amendments are intended to commence on 1 July 2008, to coincide with the commencement of the NGER System.

Garnaut Review climate change update

The Garnaut Review's draft report will be released by 30 June 2008,

The interim report, issues papers and background and discussion papers can be found here.

Emissions Trading Scheme Discussion Paper

The Garnaut Climate Change Review has released a discussion paper putting forward for community discussion a set of principles and design features for the delivery of an efficient and effective Emissions Trading Scheme (ETS).

An ETS has two types of design features: those that are essential to the operational efficiency of the scheme, referred to as intrinsic features, (for example the scheme’s coverage, permit allocation rules, compliance rules and governance); and those that are defined outside of the scheme’s operation, but still have considerable influence on the scheme’s economic impact, referred to as extrinsic features (for example, defining the emissions limits and principles for compensation).

Submissions on the discussion paper are open until 18 April 2008.

Greenhouse gas emissions in transport, land-use and buildings

The Garnaut Climate Change Review has released Issues Paper 5 - Transport, planning and the built environment .

Submissions in response to Issues Paper 5 are due by 11 April 2008.

The paper focusses on barriers to the adoption of existing low-emission technologies and practices in transport, land-use and buildings.

Climate change, emissions trading and corporate social responsibility

I recently attended a stimulating panel discussion organised by the Australasian Compliance Institute on issues businesses need to consider in dealing with climate change.

The discussion showed that there is a lot of regulatory activity by different organisations across Australia relating to energy efficiency which is not co-ordinated or well-publicised. COAG is currently reviewing these.

The Government is already considering requiring companies to report on sustainability.

Key regulatory points include understanding the obligation to report emissions (do you know the size of your carbon footprint, do you have to report?) and the risk of committing greenwashing.

Do you have a reporting and risk management structure? If you don't know the size of your carbon footprint, how can you manage it and comply with the new laws?

Are you part of a supply chain that requires emissions control?

Is there an industry standard for your business (such as the finance industry's Equator Principles)?

Emissions Reporting

Do you know the quantity of your business's emissions?

The National Greenhouse and Energy Reporting System will commence on 1 July 2008.

The reporting system is expected to cover up to 900  medium and large companies, of which around 300 will be reporting for the first time.

From 1 July 2008, corporations will be required to register and report if:
− they control facilities that emit 25 kilotonnes or more of greenhouse gas (CO2 equivalent), or produce/consume 100 terajoules or more of energy; or
− their corporate group emits 125 kilotonnes or more greenhouse gas (CO2 equivalent), or produces/consumes 500 terajoules or more of energy.

Reporting on greenhouse gas emissions, reductions, removals and offsets, and energy consumption and production will be mandatory for corporations that exceed thresholds. Companies will need to establish whether they are obliged to report and, in corporate groups, they need to identify who will report. They need to determine what they have to report and fromm where. Submissions on the policy paper closed on 27 February. See the fact sheet (pdf)

Most large users should already be registered under the Energy Efficiency Opportunities Act 2006 .

Are you "greenwashing"?

Greenwashing involves misleading use of environmental claims for your product (some businesses do not have data that supports their "green" claims but claim they are green anyway)  The ACCC is already looking at green marketing and carbon offset claims.

As this year progresses, it is likely that the regulatory effect of climate change will intensify.

Your staff may also have strong views on how you comply.

BONUS LINKS: 

Department of Climate Change

Australian Conservation Foundation

The environmental legal system in Australia

Friends of the Earth: Code Red

Green Building Council of Australia

Emissions projections

The Government has released a report (by sectors) on Australia's progress towards achieving  its targeted reductions in greenhouse gas emissions under the Kyoto Protocol.

Garnaut Climate Change Review Interim Report

An Interim Report has been released to provide an overview of the early directions and findings of the Garnaut Climate Change Review, as a basis for community discussion.

The report says that Australia must now put in place effective policies to achieve major reductions in emissions. The emissions trading scheme (ETS) is the centre-piece of a domestic mitigation strategy. To achieve effective mitigation at the lowest possible cost, the ETS will need to be supported by measures to correct market failures or weaknesses related to innovation, research and development, to information, and to network infrastructure.

A Draft Report will be released by 30 June 2008 and a Final Report by 30 September 2008.

Green marketing and the Trade Practices Act

The Australian Competition and Consumer Commission has issued Green marketing and the Trade Practices Act to provide updated guidance for businesses and industry on the use of environmental claims in marketing. 

The publication aims to educate businesses about their obligations under the Trade Practices Act 1974 and to assist manufacturers, suppliers, advertisers and others to assess the strength of any green claims they make.

Misleading advertising: carbon offset claims

Following its action against Saab Australia and previous warnings about green claims, the ACCC has released an Issues Paper relating to determining how carbon offset claims by businesses can comply with the Trade Practices Act.

The Paper looks at examples of claims of carbon-neutrality and claims of 'low carbon' and discusses what businesses need to do to substantiate those claims.

Submissions can be made orally or in writing by February 15,2008.

Greenhouse gas emissions and energy reporting policy paper

The Australian Government has released the Greenhouse and Energy Reporting System, Regulations Policy Paper on mandatory corporate reporting of energy and greenhouse gas emissions data.

The policy paper outlines proposed approaches to detailed reporting requirements for a national framework for corporations to report greenhouse gas emissions and actions to reduce emissions, including the scope of data subject to mandatory reporting, detailed definitions of terms such as facilities and emissions, registration and deregistration information, as well as reporting requirements for greenhouse gas offsets, and actions to reduce or remove emissions.

Eligible Australian corporations will be required to report on their emissions and energy for the 2008-09 financial year, with the first reports submitted by 31 October 2009.

Interested individuals and organisations are asked to submit their views on the proposals presented in the policy paper by 27 February 2008.

Garnaut Climate Change Review

Although the new government has ratified the Kyoto Protocol, it had deferred any commitment on specific short-term climate change targets until receipt of the draft Garnaut report.

The Garnaut Climate Change Review will examine the impacts of climate change on the Australian economy, and recommend medium to long-term policies and policy frameworks to improve the prospects for sustainable prosperity.

The Review's final report is due on 30 September 2008, with a draft by 30 June 2008.

Prime Minister's speech on climate change

Kevin Rudd's speech at the High Level Segment of the 13th Conference of the Parties of the United nations Framework Convention on Climate Change Bali, Indonesia emphasised Australia's historical role in the United Nations and the need for a shared global emissions goal.

"We expect all developed countries to embrace a further set of binding emissions targets – and we need this meeting at Bali to map out the process and timeline in which this will happen.

And we need developing countries to play their part – with specific commitments to action.

And we need all developed nations, all developed nations – those within the framework of the Kyoto Protocol, and those outside the framework – to embrace comparable efforts in order to bring about the global outcomes the people of the world now expect of us.

The approach we take must be comprehensive and must incorporate critical challenges, including deforestation."

Australia's Climate Change Speech to the Finance Ministers' meeting in Bali

Australia's Treasurer Wayne Swan has given a speech at the Finance Ministers meeting at the United Nations Climate Change Conference in Bali .

He outlined Australia's commitments including:

• reduce Australian emissions by 60 per cent by 2050.

• the introduction of a broad-based emissions trading system by 2010.

• introduce a 20 per cent Renewable Energy Target for Australia to reach by 2020.

• encourage the research and development of new clean energy technologies, through a number of important domestic initiatives including:

• A $500 million Renewable Energy Fund — to further develop, commercialise and deploy renewable energy in Australia; and
• A $500 million Clean Coal Fund to fund the deployment of clean coal technologies.

• establish a Clean Business Fund to assist Australian firms in improving the energy efficiency of their operations and to promote the development of technologies that will save energy and water.

The goal of the conference is to agree on a roadmap for a future international agreement on enhanced global action to fight climate change in the period after 2012, the year the first commitment period of the Kyoto Protocol expires.