Projects under the facilities method can earn Australian carbon credit units (ACCUs) by reducing the amount of greenhouse gases released from National Greenhouse and Energy Reporting (NGER) sites. This is done by:
upgrading, modifying or replacing site equipment
changing site practices
installing low emission electricity sources
improving control systems and processes.
When to use this method
The facilities method might be suitable for you if you're planning a project at an NGER facility that:
- reduces greenhouse gas emissions
- wouldn't occur at the facility without this Australian Carbon Credit Unit (ACCU) Scheme method.
Legislation
Before you plan or register your project, make sure you read and understand the legislative requirements and the method.
Eligibility
Facility eligibility
This method is only eligible for facilities that report under the NGER Scheme.
To be eligible for this method, you must:
- identify an NGER facility in the application
- conduct activities at an NGER facility that has:
- reported for at least the last 4 years (the baseline period)
- at least one production variable (for example aluminium or electricity)
- have access to the NGER facility emissions data (this is used to calculate your project's emissions)
- include a statement of activity intent when you register your project.
You must also meet general eligibility requirements for the ACCU Scheme.
Relevant legislation
- Part 3 of the Act
- Part 3 of the method
Exclusions
The following activities and facilities are excluded under this method:
- shopping centres, warehouses or transport facilities
- facilities that:
- have undergone changes during the baseline period (4 years before project starts)
- are part of a facility aggregate during the baseline or crediting period
- use ineligible biomass for energy, or import heating, cooling or off-grid electricity generated by ineligible biomass
- are part of another project registered under the facilities method.
- Activities that change the quantity of a production variable produced or processed by the facility and have a material effect on project abatement
- ineligible abatement activities as defined under section 8 of the method.
- activities that change the quantity of a production variable produced or processed by the facility and have a material effect on project abatement
If you're planning a facilities project at an electricity generator, you should contact us.
Relevant legislation
- Part 3, and Part 1 section 8 of the method
Method requirements
To register your project under this method, you must include a statement of activity intent.
You must provide a statement for each facility included in your project. Each statement must declare that the project activities wouldn't occur without the ACCU project.
You must provide a statement for each facility you have under this method.
Your statement can be signed by the Chief Financial Officer (CFO) or another officer with operational control over your facility.
If your statement’s signed by someone that isn't the CFO, your emissions reductions will be capped at 100,000 tonnes of carbon dioxide equivalent (tCO2-e) for the year.
A statement of activity intent signed by the CFO can be provided after project registration to remove this cap.
Examples of project activities are:
- replacing or modifying boilers
- improving control systems and processes
- capturing and re-using waste heat
- upgrading turbines
- improving the efficiency of crushing or grinding equipment
- replacing low-efficiency motors, fans and pumps with high-efficiency versions
- installing variable speed drives
- improving compressed air processes
- reducing industrial process emissions
- changing behaviours or processes
- installing low emissions-intensity electricity generation equipment such as solar panels
- switching fuel sources.
7 years
Relevant legislation
- Part 5 of the Act
Abatement is calculated by reducing the emissions intensity of one or more of your NGER facility's production variables from its baseline level.
This reduction is multiplied by the facility's total output in the crediting period.
It’s important to note that the method has provisions, which can result in zero abatement for one or several reporting years. These are:
- failure to meet monitoring requirements
- significant expansion or changes to output
- failure to meet the proportion requirements when an input or intermediate product has been chosen as a production variable.
Relevant legislation
- Part 4 Section 81(2), Section 27(4), Section 27(3) of the method
For projects under this scheme, you must monitor:
- greenhouse gas emissions, energy production and energy consumption
- implemented abatement activities
- changes relating to the operation of a facility
- production variables
- exported electricity
- general requirements of the Act.
If you don’t meet your monitoring requirements, it may result in zero abatement for one or more reporting years.
Relevant legislation
- Part 17 of the Act
- Part 5 division 4 and Section 81 of the method
You must record any removal and disposal of equipment or other components.
You must also meet general record-keeping requirements of the Act.
Relevant legislation
- Part 17 of the Act
- Part 17 of the Rule
- Part 5 and division 3 of the method
You must report once every 2 years with:
- new production variables
- biomass used as an energy source and imported electricity, heating or cooling from biomass
- greenhouse gas emissions, energy production and energy consumption
You must also meet general reporting and notification requirements under the Act.
Relevant legislation
- Part 6 of the Act
- Part 6 of the Rule
- Part 5 and division 1 of the method
We provide you with an audit schedule when your project's declared.
You must provide audit reports according to this schedule.
We schedule at least 3 audits and additional audits can be triggered.
For more information on audit requirements, refer to our audit information.
Relevant legislation
- Part 19 of the Act
- Part 6 of the Rule
Documents and resources
- ERF Facilities Method - Statement of Activity Intent
- Facility and project details template
- Facilities method equation tree
Explore all ACCU Scheme guidance using the guidance library.