April 2014: The Climate Change Authority has released a paper investigating the experiences of Australian and international baseline and credit schemes, and highlighting key lessons for the development of the government’s Emissions Reduction Fund.
This paper specifically looks at how other schemes have approached three central design features – what sectors or activities are covered; how to ensure emissions reductions are genuinely ‘additional’; and how baselines are set. Key lessons include:
- With an objective of achieving least cost emissions reductions across the economy, most emissions reductions from the Emissions Reduction Fund are likely to arise from a subset of covered sectors, particularly the energy and industrial sectors.
- Ensuring only genuine and additional emissions reductions are purchased can be resource-intensive and administratively time-consuming.
- Clear rules on setting baselines can ensure consistent treatment of similar projects, reduce uncertainty for project developers and allow for scheme administrators to more easily approve projects.
- Baseline and credit mechanisms do not suit all abatement opportunities. The Emissions Reduction Fund is likely to be most effective as part of a broader suite of policy measures.
The paper does not make recommendations to government.
The research paper is available here: (PDF 7.02MB)
- Key lessons – (PDF 43KB) | (DOCX 16KB)
- Chapter 1 – Introduction (PDF 219KB) | (DOCX 167KB)
- Chapter 2 – Key characteristics of baseline and credit schemes (PDF 84KB) | (DOCX 38KB)
- Chapter 3 – Coverage and uptake (PDF 240KB) | (DOCX 151KB)
- Chapter 4 – Additionvality (PDF 77KB) | (DOCX 27KB)
- Chapter 5 – Baseline setting (PDF 115KB) | (DOCX 44KB)
- Chapter 6 – Conclusion (PDF 20KB) | (DOCX 13KB)
- List of boxes, figures and tables – (PDF 32KB) | (DOCX 13KB)
- Glossary – (PDF 38KB) | (DOCX 16KB)
- Abbreviations and acronyms – (PDF 30KB) | (DOCX 13KB)
- References – (PDF 72KB) | (DOCX 19KB)
- Research reports