Following the recent release of both its climate change policy and exposure draft legislation to implement its proposed Carbon Pricing Mechanism, the Federal Government has introduced its clean energy legislation package into the House of Representatives. Most commentators believe that the Carbon Pricing Mechanism will come into effect in July 2012 as planned.
The Electricity Supply Act provides for GGAS to be terminated once a national or multi-jurisdictional scheme commences. There was some speculation as to whether GGAS would continue until 1 July 2015 at which point the fixed carbon price under the Carbon Pricing Mechanism will transition to an emissions trading scheme (with the price of carbon to be largely determined by the market). However, we believe that it is likely that GGAS will be terminated in July 2012.
Next Steps: Abatement Certificate Providers (ACPs) under GGAS should plan for the termination of the Scheme and keep abreast of the compliance obligations that will be introduced in this regard. We believe it is likely that ACPs will be required to have their NSW Greenhouse Gas Abatement Certificate (NGAC) activities audited as part of this process (unless provided with an exemption by the Scheme Administrator).
Clear Support: Clear Environment is accredited to conduct GGAS audits and will be active in supporting ACPs finalise their compliance obligations.