The Minister for Industry, Energy and Emissions Reduction has revoked the commercial and public lighting method under the Emissions Reduction Fund (ERF) following a review by the Emissions Reduction Assurance Committee (ERAC).
The commercial and public lighting method allowed proponents to generate Australian carbon credits units (ACCUs) by upgrading, modifying, replacing, or supplementing a lighting system in a commercial area, road, or public space to increase energy efficiency, reducing emissions through reduced electricity use.
Following a crediting period extension (CPE) review, the ERAC advised the method may no longer comply with the offsets integrity standard of additionality given the falling cost of more efficient lighting systems has increasingly made such upgrades a business as usual occurrence.
ERAC Chair David Byers said ERAC’s recommendation represented an example of the robust integrity arrangements underpinning the ERF Scheme.
“ERF methods are subject to legislated and rigorous scrutiny so that the public and industry can have full confidence in their effectiveness.
“Overseen by the ERAC, all methods undergo regular and comprehensive reviews to ensure they remain fit for purpose and complying with our high standards of integrity, including our strict additionality requirement.
“As is standard practice for the ERAC, this decision follows a period of evaluation including public consultation, and a review of the best possible available data and information.
Mr Byers said that the change reflected ERAC’s analysis of substantial changes in the lighting sector.
“Since the method was first announced, ERAC have identified a number of regulatory, technological and market variations impacting the sector that have informed this recommendation.
“This decision comes into effect from today (7 April 2022) and means that no new projects are able to register under this method.
For more information see commercial and public lighting on the Department of Industry, Science, Energy and Resources’ Consultation Hub.
Background
- In June 2015, ERAC found that the Carbon Credits (Commercial and Public Lighting) Methodology Determination 2015 (the Lighting method) met the offsets integrity standards and was suitable to be made, with the Minister accepting the recommendation.
- As mandated by legislation, ERAC undertakes crediting period extension (CPE) reviews of methods prior to when the first project registered under the method starts the last 12 months of its crediting period.
- ERAC commenced its CPE review into the lighting method in July 2021. Through a consideration of data and third-party submissions, the ERAC found there have been technological, regulatory and market changes.
- These changes mean that it is increasingly likely that Lighting method activities will occur in the ordinary course of events.
- Based on the review findings, the ERAC recommended the crediting period for the Lighting method not be extended.
- A final recommendation to this effect was made to the Minister. In addition, ERAC worked with CER and the Department to advise the Minister that the method should be revoked.
- As provided by the Act, the eight currently registered projects will continue for the remainder of their 7-year crediting period. New projects cannot be registered under the method.