Completed enforceable undertakings for 2017

It is alleged that Australian Carbon Traders made improper amendments to eligible interest holder consent forms submitted to the Regulator in relation to five (5) registered Emission Reduction Fund projects in accordance with section 25 of the Rule. The Regulator alleges these amendments gave the false impression that certain eligible interest holders had provided consent for the full project area, when they had not. As a consequence, not all relevant EIH consents have been obtained.

Climate Friendly’s monitoring, information and record management procedures did not, at the time of submission of the forms by Australian Carbon Traders, identify that forms had been improperly amended.

Climate Friendly hereby undertakes to:

1. Obtain and resubmit to the Regulator, within one month of the date of this undertaking, new correct eligible interest holder consent forms for registered Emission Reduction Fund projects that are identified by the two Parties to this Undertaking as being impacted by the conduct outlined in clause 6;
2. By agreement with project proponents, transition all projects for which ACT and Climate Friendly are currently co-agents to a single agent model, with Climate Friendly acting as that single agent within three months of the date of this Undertaking;
3. Review internal standard operating, information and records management procedures related to emissions reduction fund projects and update these where necessary to ensure compliance with all relevant legislative requirements and the inclusion of additional due diligence measures, including but not limited to increased quality assurance, quality controls and management oversight of information or requests submitted to the Regulator within three months of the date of this Undertaking. The review and any necessary updated procedures will be finalised to the reasonable satisfaction of the Regulator;
4. Commission an independent audit of Climate Friendly's standard operating and records management procedures related to emissions reduction fund projects within six months of the date of this Undertaking. The audit must be undertaken by a Category 2 Registered Greenhouse and Energy Auditor with demonstrated expertise and experience in performance audits of systems and processes holding, as a minimum, ASIC registered company auditor status. Professional membership of the Institute of Internal Auditors (PMIIA) would be an advantage in demonstrating expertise in this area; and
5. Implement a training program within six months to ensure all staff, and where relevant implementing partners, receive training from suitably qualified staff or external consultants on implementation of standard operating, information and records management procedures. This program will be run on an annual basis for all staff, with extra sessions run for new staff.

GBE improperly created, in contravention of section 24 of the REE Act, 14,101 small scale technology certificates (STCs) from installations of solar photovoltaic (PV) panels that were non-compliant.

GBE’s compliance procedures did not identify, at the time of STC creation, that the solar PV panels were non-genuine solar PV panels.

GBE was, however, unaware at the time of STC creation, that the solar PV panels were non-genuine solar PV panels and was not involved in the supply or installation of the Existing Non-Compliant PV Panels.

GBE undertakes to:

1. use best endeavours to obtain, within five months of the date of this Undertaking, the consent of the owners of the Existing Non-Compliant PV Panels and the occupiers of the Sites, to replace the Existing Non-Compliant Panels;
2. replace, in a manner which meets all Regulatory Requirements for solar PV panel replacement of existing systems, and within six months of the date of this Undertaking, those Existing Non-Compliant PV Panels in relation to which the consents specified in subclause 9(a) have been obtained, with New Compliant PV Panels;
3. surrender, within twelve months of the date of this Undertaking, a number of STCs equal to the number of STCs improperly created for those Existing Non-Compliant PV Panels which are not able to be replaced due to the consents specified in subclause 9(a) not being provided;
4. assist the Regulator in communicating with affected owners and occupiers of the Sites;
5. report to the Regulator, in writing:
   1. once per month, against the undertakings in clause 10; and
   2. within three business days of an event occurring which is likely to have an effect on the fulfilling of the Undertaking in subclause 10(b); and
6. continue to implement its Compliance Program for a period of 12 months or until this Undertaking ceases to take effect, whichever comes later.
7. In the event that relevant parts of the GBE business are to be assigned to another entity, and the performance of the undertakings set out in (a) to (f) above are likely to be impacted by that assignment, GBE will inform the Regulator in writing at least 3 business days prior to the assignment occurring.