We welcome the opportunity to respond to the Department’s discussion paper on the treatment of voluntary renewable energy purchases under NGERS.
ATA supports the view that the current accounting arrangements with respect to GreenPower and voluntarily purchased renewable energy are flawed, and provide a disincentive to individual organisations reporting under NGERS.
In response to the Department’s discussion paper, ATA supports Option 3 – ‘Adjustment to the state-based emissions factor ‘netting out’ voluntary purchases of renewable energy sources’. ATA supports Option 3 as it:
– rewards NGERS reporters for voluntarily purchasing a zero-emissions electricity product;
– eliminates free-riders by removing GreenPower from the calculations that lead to state-based emission factors;
– reduces the ability of State Governments to benefit from voluntary purchases by NGERS organisations.
ATA believe that the more pressing issue for the longer term success of Australia’s voluntary carbon market, particularly from the consumer perspective, remains the manner in which these voluntary renewable energy purchases are dealt with at the national level – both under Australia’s Kyoto commitments and under any likely future emissions trading scheme.