First Australian carbon units issued
The Australian Government’s Clean Energy Regulator has issued carbon units for the first time, signalling the commencement of the Australian carbon market.
Free carbon units under the Jobs and Competitiveness Program were issued via the Australian National Registry of Emissions Units (ANREU). It is a secure electronic system designed to accurately track the location and ownership of emission units.
The Clean Energy Regulator is required to publish the details of successful applicants issued free carbon units under the Jobs and Competitiveness Program.
Chloe Munro, Chair and Chief Executive Officer said:
“First three applicants have received around 6.37 million free carbon units which companies can now sell back to the government, transfer, or use to acquit their future liability under the carbon pricing mechanism.”
The Jobs and Competitiveness Program provides ongoing assistance to companies that produce significant carbon emissions, but are constrained in their capacity to pass through costs in global markets.
Assistance will be provided to around 50 of these ‘emissions-intensive trade-exposed’ industrial activities, such as steel, aluminium, cement and zinc manufacturing.
Businesses producing over 80 per cent of the manufacturing sector’s emissions are expected to be eligible for assistance under this program.
The most emissions-intensive trade-exposed activities will receive assistance to cover 94.5 per cent of industry average carbon costs in the first year of the carbon price. Less emissions-intensive trade-exposed activities will receive assistance to cover 66 per cent of industry average carbon costs. Assistance will be reduced by 1.3 per cent each year to encourage industry to cut emissions.
Over the coming weeks, the Clean Energy Regulator will continue to process applications and issue further units under this Program to more eligible applicants.