Published: Submissions to economic modelling consultation paper and NGER survey

Today, the Climate Change Authority published public submissions made in response to the consultation paper: Economic modelling of Australia’s potential emissions reduction pathways(Opens in a new tab/window) and the National Greenhouse and Energy Reporting (NGER) Survey(Opens in a new tab/window).

The authority received submissions in response to its modelling consultation paper from 22 organisations and individuals across Australia, 19 of which agreed to publication.

The NGER scheme survey attracted 69 responses from a range of organisations and individuals, 21 of which agreed to publication.

The authority analysed all input received through these consultation activities. Analysis of responses to the NGER scheme survey contributed to the development of the authority’s 2023 NGER Act Review.

The authority will continue to take account of stakeholder feedback in formulating the authority’s approach to modelling. The feedback received through this process will inform the authority’s advice on sectoral pathways to net zero and Australia’s 2035 emissions reduction targets.

The authority thanks everyone who provided input. These contributions improve the quality of the authority’s analysis and provide evidence to help inform the authority’s recommendations.

Submissions can be viewed and downloaded below:

To receive updates about the Climate Change Authority's work, upcoming consultation opportunities and climate change news, you can subscribe here(Opens in a new tab/window)

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2023 Reviews of Climate Schemes

2023 Reviews of Climate Schemes

Climate change schemes need to evolve to remain fit-for-purpose in a rapidly changing emissions and abatement landscape. The Climate Change Authority has recommended changes to improve the operation and transparency of key schemes for measuring and reporting greenhouse gas emissions and crediting emissions reductions.

In its latest reviews, the authority says the targeted changes are required to ensure the National Greenhouse and Energy Reporting (NGER) Act 2007 and the Carbon Credits (Carbon Farming Initiative) Act 2011, including the Australian Carbon Credit Unit (ACCU) Scheme, remain fit-for-purpose as Australia aims to meet its 2030 and 2050 emissions reduction targets.  

The NGER Scheme, which is used to measure and report greenhouse gas emissions and energy production and use, continues to be integral to meeting Australia’s international energy and emissions reporting obligations, tracking progress on emissions reductions and informing climate change policy development. However, the authority has found there is demand for more detailed emissions and energy data, the potential to improve the accuracy of some emissions estimates and the opportunity to broaden the coverage of the scheme.

The ACCU Scheme credits projects that avoid the release of emissions or remove and sequester carbon from the atmosphere. While ambitious and urgent cuts to emissions are the priority, the Scheme can help smooth and accelerate the transition to net zero emissions.

To ensure that the ACCU Scheme continues to credit real and additional abatement, the authority recommends abatement calculation methods be reviewed and updated to keep pace with developments in science, technology, government policies and markets.

It is the first time the authority’s reviews of the ACCU and NGER schemes have coincided. They form a timely prelude to the authority’s forthcoming advice to government on sectoral pathways to net zero emissions and Australia’s 2035 emissions reduction targets, due for completion in 2024.

Media release     

2023 NGER Review

2023 ACCU Scheme Review     

 

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Authority publishes its advice for the government's second Annual Climate Change Statement

The Climate Change Authority has published the advice and 42 recommendations it provided to the Minister for Climate Change and Energy on 27 October. The authority’s advice is a key input to the government’s Annual Climate Change Statement and is required under the Climate Change Act 2022. 

The authority’s second Annual Progress Report finds the Australian Government is pursuing a broad and deep climate change policy agenda, but this has yet to translate into the emissions reductions needed. Australia’s greenhouse gas emissions were 467 million tonnes in the year ending June 2023, an increase of four million tonnes. To achieve a 43% reduction in emissions by 2030 compared with 2005 levels, and net zero emissions by 2050, Australia will need to decarbonise at an average annual rate of 17 million tonnes. 

The authority’s 42 recommendations focus on decarbonising each sector of the economy and supporting Australia becoming a prosperous, resilient, net zero economy. Many recommendations call on the Australian government and states and territories to work more cooperatively to achieve policy objectives to meet the legislated 2030 target. While governments hold the policy levers to guide businesses and individuals to choices that support Australia’s climate change goals, the necessary changes go beyond the reach of any government acting alone.

Successful policy implementation will be crucial for achieving Australia’s emissions reduction targets.

The authority’s Media Release can be found here: [PDF] [WORD]

The Annual Progress Report 2023 can be found here.

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Submissions to the authority’s Issues Paper: Setting, tracking and achieving Australia’s emissions reduction target published.

The Climate Change Authority has today published all public submissions made to our May 2023 Issues Paper: Setting, tracking and achieving Australia’s emissions reduction targets.  (Opens in a new tab/window)

The authority received submissions from 323 organisations and individuals across Australia, 272 of which agreed to the authority publishing their submission online.

The authority has analysed the submissions and will continue to take account of contents in formulating advice to government, including the 2023 Annual Progress Report, the Australian Carbon Credit Units (ACCU) Scheme review, the National Greenhouse and Energy Reporting (NGER) Act review, advice on sectoral pathways to net zero and Australia’s 2035 targets.  To receive information about further consultation opportunities, sign up here(Opens in a new tab/window).

We would like to thank everyone who made a submission. These contributions improve the quality of our analysis and provide evidence to help inform our recommendations.

Submissions can be viewed and downloaded here(Opens in a new tab/window).

You can contact us via consultation@climatechangeauthority.gov.au.

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Technical innovation can lower the costs of carbon sequestration – CSIRO Report

A new CSIRO report provides valuable information on the potential to lower the costs of sequestration technologies, which in turn could lead to greater uptake.

The CSIRO Sequestration Cost Reduction Workshops Report synthesises a series of expert workshops held to test the potential for technical innovation to reduce costs and increase carbon sequestration uptake across various technologies and approaches. 

Growth in carbon sequestration, complementing strong and urgent emissions cuts, is critical to achieving the global goal of net zero emissions by 2050 and net negative emissions in the second half of the century. 

The report is part of a two-year project collaboration between the Climate Change Authority, the CSIRO and the Clean Energy Regulator to understand and unlock Australia’s carbon sequestration potential.

More than 60 experts from industry, academia and government advised on innovation options for carbon sequestration approaches from planted vegetation and savanna fire management to direct air capture of carbon dioxide. 

Some technologies examined are currently in the early stages of development, costly and not widely used; others are widely deployed, but further expansion of their use would help lower technology costs and support national abatement goals. 

Key findings from the workshops include:

  • All the sequestration approaches examined in the workshops have technical innovation options available that can lower costs; with less mature technologies (such as direct air capture, biomass/biochar and mineral carbonation) having greater potential for cost reduction and accelerated uptake.
  • Innovations in blue carbon could reduce costs by around 40% on current costs. 
  • Innovations in planted vegetation sequestration could result in cost reductions of approximately 10 to 30%. 
  • Good opportunities exist to lower the costs of mineral carbonation sequestration, a technology currently in the early stages of development. 

CSIRO’s Sequestration Cost Reduction Workshops Report is available here(Opens in a new tab/window)

Read more about the Authority’s carbon sequestration potential project here.
 

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Open for registration: The CCA’s ACCU scheme review, interactive webinar

The Climate Change Authority invites you to join a webinar 11.30am-1pm (AEDT) on Tuesday 17 October 2023. The webinar is an opportunity to learn about and discuss the authority’s latest thinking in its review of the ACCU Scheme.

In this, our fourth review of the legislation that enables the Australian Carbon Credit Unit (ACCU) scheme, we are focusing on:  

  • Securing integrity – focusing on additionality, permanence and leakage. 
  • Valuing non-carbon outcomes – including First Nations people’s engagement.
  • Managing supply and demand - including land use competition and supporting participation. Intersection with the Safeguard Mechanism is also considered, in relation to demand. 
  • Scaling emissions removals – including how the scheme can support engineered removals. 
  • Alignment with the Paris Agreement – including international trade considerations. 

The authority’s secretariat will outline the approach taken to the review, draft findings, and latest thinking about potential recommendations. You will have the opportunity to ask questions and join the conversation.

Please register to join the webinar here(Opens in a new tab/window).

If you have any questions about the event or the review, please contact us via consultation@climatechangeauthority.gov.au 
 

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Parliament refers sectoral pathways review to the Climate Change Authority

The Australian Parliament has requested that the Climate Change Authority (CCA) review the potential technology transition and emissions pathways that best support Australia’s transition to net zero by 2050 for the following sectors:

  • Electricity and energy
  • Transport
  • Industry and waste
  • Agriculture and land
  • Resources
  • Built environment.

The authority must identify opportunities, technologies, barriers, workforce matters, information gaps, and the role of public and private finance in its review of sectoral pathways.

The review was requested under Section 59 of the Climate Change Authority Act (2011) and will be delivered by 1 August 2024. The terms of reference are set out below.

The authority welcomes the opportunity to consult widely and provide advice to government on decarbonisation pathway. Through examining each sector’s opportunities to achieve emissions reductions and barriers that might stand in the way, the sectoral pathways review will outline how Australia could achieve net zero by 2050, and how far sectors could go by 2035. 

Work is already underway in the authority to develop advice on Australia’s 2035 emissions reduction targets, due to government no earlier than 1 October 2024. 

In the months ahead, the authority will also deliver its advice for the Minister’s annual climate change statement and reviews of the National Greenhouse and Energy Reporting (NGER) scheme and Australian Carbon Credit Unit (ACCU) scheme. 

The sectoral pathways review was requested under Section 59 of the Climate Change Authority Act (2011) and will be delivered by 1 August 2024.

Referral to the Climate Change Authority from the Australian Parliament (11 September 2023)

That:

  1. the following matter be referred to the Climate Change Authority for review, in accordance with section 59(1)(a)(ii) of the Climate Change Authority Act 2011:
        a. the potential technology transition and emission pathways that best support Australia’s transition to net zero emissions by 2050 for the following sectors:
                    (i) electricity and energy;
                    (ii) transport; 
                    (iii) industry and waste; 

                    (iv) agriculture and land; 
                    (v) resources; and 
                    (vi) built environment.
  2. the review must identify:
        a. existing and prospective opportunities to achieve emissions reductions; 
        b. which technologies may be deployed in each sector to support emissions reductions;
        c. how public and private finance can support and align with these emission pathways;
        d. barriers to implementation, such as short-term or longer-term pressures on cost and supply chains and the pace of technology commercialisation;
        e. workforce matters, including skills and opportunities for women;
        f. any gaps in existing evidence and data; and
        g. any other relevant factors;
  3. the review must take into consideration:
        a. 
    the principles for the Climate Change Authority set out in section 12 of the Climate Change Authority Act 2011 , including the global goals in Article 2 of the Paris Agreement and boosting economic, employment and social benefits; and
        b. the range of emissions reductions achievable through the deployment of available and prospective technologies;
  4. the Climate Change Authority must give the report of the review to the Climate Change Minister, in accordance with section 60(1)(b) of the Climate Change Authority Act 2011, by 1 August 2024 to assist the Government in developing a national net zero by 2050 plan. 
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Climate Change Authority releases its Corporate Plan 2023-24

The authority has today released its 2023-24 Corporate Plan, outlining its activities for the next four years. 

Corporate Plan 2023-24 [PDF] [WORD]. 

In his opening statement, the chair of the authority Mr Grant King noted that the plan reflects a substantially expanded role and work program for the authority, spanning existing and new statutory responsibilities, and backed by a restored capacity to deliver. 

“Domestically, climate concern and ambition need to translate into real traction and momentum by governments, business and communities working together. While responding to these challenges is a collective priority, the burden of change needs to fall fairly. We need to be mindful of vulnerable groups and critically-exposed sectors, and be at our creative best in finding solutions and seizing opportunities to successfully achieve our net zero goals,” Mr King said.

Looking ahead to the next twelve months, the authority will:

  • Provide its second Annual Progress Report on progress towards emissions reduction targets, which will support Minister Bowen’s 2023 Annual Climate Statement to Parliament.
  • Complete and report on statutory reviews of the Carbon Credits (Carbon Farming Initiative) Act 2011, and the National Greenhouse and Energy Reporting Act 2007.
  • Progress advice on sectoral emissions reduction pathways to net zero, expected to be commissioned in late 2023 by a parliamentary referral.
  • Continue working on advice for Australia’s 2035 emissions reduction targets under its next Nationally Determined Contribution to the Paris Agreement, due to be submitted to the government in late 2024.

“In all our work, the authority seeks to embody its values of independence; broad and meaningful outreach and engagement; excellence in research and analysis; transparency; and good governance and accountability,” CEO Brad Archer said.
 

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Timeline extended for the Authority’s survey on the National Greenhouse and Energy Reporting Act

Timeline extended on the survey for the Authority’s review of the National Greenhouse and Energy Reporting Act (NGER Act) 

In response to requests, the Authority has extended the timeline for the survey on key themes in this year’s review of the National Greenhouse and Energy Reporting Act 2007(Opens in a new tab/window) (NGER Act). The survey will now be open until 11:59PM AEST Friday 15 September 2023.  

You can preview the survey questions (via a PDF) and submit your responses on the Authority's consultation hub(Opens in a new tab/window). If you are unable to use the consultation hub, please contact us at consultation@climatechangeauthority.gov.au 

 

Context  

The Authority is currently conducting its second review of the NGER Act, due to be submitted to the Minister for Climate Change and Energy before 31 December 2023.   

The Authority’s review of the NGER Act will focus on the NGER scheme, recognising the Safeguard Mechanism has been through a significant reform process.  

The Authority is an independent statutory authority established under the Climate Change Authority Act 2011(Opens in a new tab/window) to provide expert advice to the Australian Government on climate change policy.

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Consultation open on the Authority’s economic modelling exercise

The Climate Change Authority has begun developing its approach to the 2035 emissions reduction target advice to the Australian Government.

This approach includes an economic modelling exercise that is currently in its preliminary stages. The Authority has released a consultation paper seeking stakeholder feedback on the exercise. 

The Authority proposes that its advice on future emissions targets be based on four pillars: 

  1. international considerations
  2. wellbeing 
  3. sectoral pathways 
  4. economic analysis 

Economic modelling is a key input to the ‘economic analysis’ pillar.

This consultation paper outlines the Authority’s early thinking on a modelling approach, including potential scenarios and assumptions. 

Feedback on this consultation paper will inform the development of the modelling approach and related analysis, and support the Authority’s advice to the Government.

If you are an expert in climate change or economic modelling or have views on how the Authority should approach economic modelling, we want to hear from you.

To make a submission, please review the consultation paper: [PDF] [WORD]

Submissions can be made via our Consultation Hub(Opens in a new tab/window)

Submissions close 15 September 2023.
 

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