Greenhouse Gas Pilot

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Greenhouse Gas Pilot

• Debrief of Outcomes
• August/ September 2006

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Outline

• Background
• CoAG decision
• Pilot Outcomes
• Your Say
• Questions

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What is the Greenhouse Pilot?

• Aim Examine GHG reporting disclosure by
  industry with a critical focus on the issues
  associated with using NPI
• Led by Victoria, in conjunction with all States
  and Territories, comprises 2 work streams
• Strategic Issues Stream (policy issues)
• Practical Implementation Stream
• (data collection presentation)

• Draft position paper
• Consultation
• Final position paper

• 25 companies, 70 sites across Aust
• Data available at EPA website
• Report on 2004/05 data collection soon on EPA
  website

www.epa.vic.gov.au/air/greenhouse_pilot/default.as
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The NPI NEPM Variation

• At its meeting in July 2005, EPHC agreed to
  initiate the NPI NEPM variation process
• A draft NEPM and Impact Statement has been
  prepared
• Major issues under consideration are
• Greenhouse gases
• Transfers of waste
• Review of substances and thresholds
• Other changes include name change (National
  Emissions Inventory) and removal of Aquaculture
  exclusion
• GHG issue has been informed by Victorias
  Greenhouse Pilot

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Background other processes

• Joint EPHC/MCE groups (PWG/TWG) tasked with
  investigating
• Streamlining reporting burden (of various
  programs) through a common web reporting point
  (TWG)
• Options for a national mandatory reporting
  requirement (PWG)
• NEPC foreshadowed NPIs potential role in above
  by agreeing to initiate NEPM Variation mid-2005

6
COAG Decision 14 July 2006

• Jurisdictions have been directed to pursue
  national purpose-built legislation for emissions
  and energy reporting and report back to COAG by
  December 2006
• As a result all EPHC work on GHG has been halted,
  pending the above
• Should national purpose-built legislation not be
  agreed at December COAG the NPI becomes a valid
  fallback position
• CoAGs communiqué at
• www.coag.gov.au (p.9)

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COAG Decision 14 July 2006

• Climate Change
• In relation to energy and greenhouse gas
  emissions reporting, COAG agreed that a single
  streamlined system that imposes the least cost
  and red tape burden is the preferable course of
  action. To this end
• COAG agreed that Senior Officials report back to
  COAG in December 2006 with a proposal for
  streamlining emissions and energy reporting in
  line with the above objectives. The report
  should be based on the preparation of national
  purpose-built legislation to provide for
  cost-effective mandatory reporting and disclosure
  at the company level at the earliest practicable
  date. The report will also need to include
  advice on timing, thresholds and governance
  arrangements
• COAG also agreed that the National Pollutant
  Inventory (NPI) would not be used as a vehicle
  for reporting greenhouse gas emissions and that
  no further work be undertaken by the Environment
  Protection and Heritage Council on incorporating
  greenhouse gas emission reporting in the NPI
  pending finalisation of the above report and

• COAG further agreed that every effort should be
  made to reach agreement on a national
  purpose-built legislation by December 2006.
  States and Territories reserved the right to use
  the NPI if the Commonwealth, States and
  Territories failed to reach agreement on national
  purpose-built legislation at COAGs next meeting.

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Pilot Outcomes

• Final Position Paper
• Issues investigation
• Analysis of costs and benefits of proposal
• The Pilot (NEPM) Proposal
• Report Findings from data collection and
  disclosure

www.epa.vic.gov.au/air/greenhouse_pilot/default.as
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What would an NPI NEI with GHG look like?
The Pilot (NEPM) Proposal

• Disclosed alongside other emissions?

• NO !

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What would an NPI NEI with GHG look like?

• Displayed as a local emission?

• NO !

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What would an NPI NEI with GHG look like?

• Report greenhouse gas emissions to Greenhouse
  Challenge and NPI separately?

• NO !

12
What would an NPI NEI with GHG look like?

• Mandatory reporting of GHG emissions and energy
  data
• Thresholds applied at a company level of 25,000
  tonnes of greenhouse gas in CO2-e pa, or
  production/consumption of 100 terajoules of
  energy annually new threshold Category 4
• Data reported to Government at the facility
  level and public disclosure at the company level
• GHG emissions from off-site transport
  attributable to a company is reported
• Diffuse (aggregated) emission estimates included
  as is currently the case

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What would be reported?

• Direct emissions of 6 Kyoto gases CO2, CH4, N2O,
  HFCs, PFCs, SF6
• Indirect emissions (CO2e indirect) from
  electricity use on site
• Electricity use in TJ or MWh, type and quantity
  of fuel (not public)
• Emission reduction activities (tonnes CO2-e
  abated and actions implemented) (voluntary)
• Industry comment (voluntary)
• All at facility level
• Head office type facility for purposes of
  reporting emissions such as company-wide fleet
  emissions or aggregating a number
• of small sites

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How would this data be displayed?
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How will reporting occur?

• Streamlining of emissions information is
  important
• Best case single reporting system for all
  emissions collection programs (GHG, NPI
  combustion gases and other NPI emissions)
• Next best single reporting system for GHG
  reporting?

• Next best flexible reporting for GHG, enabling
  reporter choice between reporting via AGOs
  OSCAR or NPI, depending on their reporting
  demographic

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Flexible Reporting System
DEH disclosure website
Data subset for NPI to DEH (once approved by
jurisdiction)
Jurisdictional NPI team via (NRT)
OSCAR If NPI (GHG) then set facility level
reporting
Data assessment in OSCAR
GHG Y/N?
10
90

• GCP Reporter current NPI Reporter

Current NPI Reporter only
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Impacts of a Varied NEPM

• Industry Summary of costs and benefits

25kt threshold 2.5M elec. bill
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Impacts of a Varied NEPM

• Government Summary of costs and benefits

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Impacts of a Varied NEPM

• Community Summary of costs and benefits

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Strength of proposal

• Low costs (existing frameworks, minimal
  additional effort for reporters to report GHG)
• Short implementation timeframes
• Consistency with current program
• Pre-existence of confidentiality safeguards
• International PRTR precedents
• Opportunity to be flexibly implemented without
  impeding streamlining work of TWG
• Modification of existing program - least red tape

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Pilot Findings policy stream

• The NPI is a suitable mechanism for reporting
  and disclosure of greenhouse gas emissions in
  Australia. With existing frameworks in place this
  can be done relatively quickly and at low cost to
  government and business. There are clear
  international precedents with NPI-equivalent
  programs throughout the UK and Europe currently
  including greenhouse gases.

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Pilot Findings practical stream

• 25 companies, 70 sites successfully provided data
  for 2004/05
• Proposed implementation model, in particular its
  flexible approach, was supported. This support
  ranged from strong to cautious, to near
  ambivalence.
• Very low effort to report to pilot (average 3
  hours per site)
• No reports from the Pilot companies themselves,
  or from EPA Victorias experience, of negative
  consequences of disclosing this data.

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How to have your say

• Submissions on all aspects of draft NEPM
  variation impact statement welcome
• Details about making a submission on EPHC website
  (www.ephc.gov.au)
• Written submissions should be sent to
• Ms Monina Gilbey
• Project Officer
• NEPC Service Corporation
• Level 5, 81 Flinders Street
• Adelaide SA 5000
• Email  mgilbey_at_ephc.gov.au
• Or, to EPA Victoria Greenhouse Pilot team
• Pilot_at_epa.vic.gov.au

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Questions
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