I am pleased to present the Clean Energy Regulator's (CER) Corporate Plan 2024-28 as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This plan outlines how we are advancing our purpose and objectives, engaging with stakeholders, further developing staff capability and a pro-integrity culture to deliver the Australian Government's priorities.
Our purpose, to accelerate carbon abatement for Australia, remains our key driver as we work to contribute to Australia's 2030 and 2050 emissions targets.
The government has announced several new emissions reduction initiatives since our last Corporate Plan. The CER will support some of these over the coming years by expanding its carbon market, registry and data services to schemes run by other government departments, such as the New Vehicle Efficiency Standard (NVES). We are also working with the Department of Climate Change, Energy, the Environment and Water to establish a nature repair market in Australia, following the passage of the Nature Repair Act 2023 into law.
A key priority over the course of this Corporate Plan is successful administration of the reformed Safeguard Mechanism. Safeguard reforms are intended to reduce emissions at Australia's largest industrial facilities to deliver a proportional share of Australia's 2030 climate target. We are investing in stakeholder outreach, new data and reporting systems and procuring a modern register to host a new type of carbon unit - Safeguard Mechanism Credits. Our plan details that we expect 100% compliance from facilities covered by the Safeguard Mechanism.
For carbon markets to work effectively, credits must have integrity and key data should be publicly available. We are investing in independent audits and additional geospatial tools to enhance the Australian Carbon Credit Units (ACCU) Scheme assurance and are continuing to implement the recommended requirements resulting from the Independent Review of ACCUs. Increasingly we are sharing and publishing more scheme data and information to inform policy, help others understand progress in reducing emissions and evidence environmental claims. Our experience in developing a standard reporting format for private organisations to detail their emissions reduction outcomes has contributed to the design of the new mandatory climate-related disclosure scheme for large companies. We continue to support industries through the planned launch and progressive population of our data services website, which will make it easier to find, access and understand our data.
The announced introduction of a Guarantee of Origin Scheme will see the agency leverage its capabilities, systems, processes and data to track and verify emissions associated with the production of hydrogen, renewable electricity, some metals and fuels made in Australia over the period to 2030. This will help decarbonise the Australian economy by encouraging sellers to reduce carbon intensity and linking the Guarantee of Origin to some government incentive programs. Increasing transparency for consumers will give sellers a comparative advantage in the Australian and international markets.
Our new unit register will host ACCUs, Guarantee of Origin Certificates, Safeguard Mechanism Credits, Biodiversity Certificates and provide registry support functions for the NVES, allowing the government to use this critical carbon market infrastructure beyond the schemes we administer. Work to establish the Australian Carbon Exchange is ongoing with industry consultations planned to inform the final detail of the exchange model and required approvals. ACCUs will be the first units to be listed on the exchange, making it simpler and cheaper for businesses to discover prices and participate in Australia's carbon market.
Australia continues to deploy renewables at a rapid pace. The number of households preparing to electrify and taking control of their energy costs is accelerating while a substantial change in the policy landscape to support deployment of large-scale renewables was announced in 2023. By progressively implementing legislative reforms in the small-scale renewable supply chain and increasing the use of risk-based decision making, we are strengthening integrity in the scheme.
We expect demand for large-scale generation certificates will accelerate and our systems and processes will also need to adapt.
As participation in our schemes and interest in carbon related markets grows, we have adopted a whole-of-system perspective that allows us to be responsive to government policies and stakeholder needs. Our internal Change Program is transforming our online services to deliver a coherent user experience that is easier and faster for those that do business with us while supporting participants to be compliant. Higher levels of transparency on the status of applications help keep us accountable while the data and system improvements allow us to better manage risks and be more efficient.
We will continue to work closely with participants across all of our schemes to ensure they are clear on our expectations and have the right information to support compliance, transparency and integrity of the schemes we administer. We will continue our important consultation efforts with communities, experts, industry, First Nations people and governments. Maintaining a strong two-way flow of information and an appetite for continuous improvement is vital to our work. Our new website provides a modern interface for the agency that makes it easier to find information on our schemes and for participants to understand their obligations.
Due to our broader range of responsibilities, there has been rapid growth at the CER. The support of a strong team of committed professionals is essential in ensuring the CER can fulfil the vital tasks the government has asked of us.
Our people remain our greatest asset and I will continue to put the highest priority on supporting our team to adapt to changes in our operating environment and providing a strong inclusive culture which celebrates our achievements.
The next four years will be an important period for the CER as Australia strives towards achieving the 2030 target of a 43% reduction in emissions from our 2005 level. I believe the CER is ready for the challenge and I look forward to these key years ahead.
Mr David Parker AM
Chair, Clean Energy Regulator
21 August 2024