Greenhouse Gas Emissions Management

As global greenhouse gas emissions continue to rise, so too does awareness of climate change and the action required to mitigate its effects.

Many Australian companies are now undertaking emissions reduction activities, either on a voluntary basis, or in order to meet the requirements of a mandatory compliance scheme.

One option for managing emissions is to purchase and acquit carbon credits. Carbon credits, which are referred to by a range of different names, are essentially market-based instruments that allow for the trade of greenhouse gas emissions reductions, or allowances. Typically, one carbon credit equates to one tonne of carbon dioxide, or its equivalent.

Where voluntary actions are undertaken, CO2 Australia recommends that only certified carbon credits (emissions reduction units), or projects, are used. For Australian-based projects, the Greenhouse Friendly program offers a robust means of independently verifying and certifying carbon credits and the projects that generate them.

Mandatory compliance mechanisms that are presently operating within Australia include the NSW Greenhouse Gas Reduction Scheme (NSWGGAS) and the National Greenhouse and Energy Reporting scheme (NGERs). Additionally, the Government has announced that compliance obligations relating to the proposed Carbon Pollution Reduction Scheme (CPRS) will come into effect in 2011. Each of these schemes has very specific requirements around the type of carbon credit they will recognise and allow in reducing emissions.

Well designed reforestation projects are eligible to generate carbon credits under both voluntary and mandatory schemes operating within Australia. Many organisations have already invested in reforestation projects in advance of anticipated mandatory obligations, such as the CPRS, as there are a number of benefits to early investment.

Contact CO2 Australia on 03 9928 5111 or via email for a confidential discussion about managing your carbon risk.