The Clean Energy Regulator is seeking input into a new corporate emissions reduction transparency (CERT) reporting scheme, being developed to provide greater insight into corporate climate pledges and the progress companies are making to voluntarily cut emissions.
As was first revealed by RenewEconomy in January, the regulator has been developing the new reporting scheme in the hope that it will help improve the accuracy and comparability of corporate emissions pledges.
Currently, large emitters are required to disclose data on their greenhouse gas emissions and energy use under the National Greenhouse and Energy Reporting scheme (NGERs) scheme each year, with this information released publicly, providing insights into which companies are responsible for the bulk of Australia’s national emissions.
The regulator says the new scheme would provide a supplementary reporting scheme that would also allow companies to voluntarily disclose their purchases of carbon offset units, and supplies of renewable energy to provide a bigger picture of a company’s contribution to Australia’s emissions.
The proposed scheme would also allow major emitters to demonstrate their progress towards their own emissions reduction targets.
“Participating companies will use the CERT report to communicate their achievements to consumers, investors, shareholders and government agencies, providing confidence in progress towards their emissions reduction commitments,” Parker said.
The Morrison government imposes virtually no restrictions on corporate emitters, with no form of carbon pricing in place, and policies like the Safeguard Mechanism imposing such weak caps that industrial emitters rarely face any need to offset rising emissions.
However, some companies have made voluntary commitments to reduce their emissions, with many companies committing to net zero targets for 2050, as well as medium-term targets.
Some companies have opted to purchase carbon offsets to help reduce their overall carbon footprint, and the proposed corporate emissions reduction transparency scheme will be designed to support companies demonstrate progress towards these voluntary targets.
“By providing a standardised and simple format for reporting emissions, CERT will make it easy for participating companies to report their net emissions position and their progress towards voluntary commitments,” chair of the Clean Energy Regulator, David Parker, said.
“In designing the CERT report, we have sought to balance providing participating companies with the flexibility to properly tell their emissions reduction story, while also ensuring a degree of consistency and comparability in how the data is presented.”
The regulator has previously indicated that it expects voluntary pledges to cut emissions being made by Australian companies will become the main driver of demand for carbon offsets, including the Australian Carbon Credit Units (ACCUs) issued under the Emissions Reduction Fund.
Currently, the federal government is the largest buyer of ACCU, as part of the Coalition Government’s strategy for reducing Australia’s emissions to meet its Paris Agreement targets – but it appears the Morrison government will be happy to back out of the market and allow private companies to serve as the primary driver of future emissions reductions.
The Clean Energy Regulator is aiming to have a pilot version of the new reporting scheme up and running before the end of the year and will be available to companies that have reporting requirements under the NGERs scheme.
The regulator is seeking feedback from interested parties until 1 November.
“If you have an emissions reduction commitment or an interest in transparent emissions reporting for companies, we are seeking feedback on the practical application of the CERT report guidelines that will be used in the pilot,” Parker said.
