AST Clean Emissions Intensity Material

On Oct. 12, AST Clean released material re safeguard mechanism.

  • AST Clean released the Safeguard mechanism emissions-intensity determination application guideline (v1.0) to assist responsible emitters apply for emissions-intensity determination (EID); Safeguard mechanism emissions-intensity audit report template.
  • It also guided re EID eligibility, deadlines; provided production variable review update.
  • Follows AST DCCEEW Jul. 2023 issued proposal re safeguard mechanism, #179812.
  • Document dated Oct. 12, 2023, received from AST Clean Oct. 20, summarized Oct. 24.
  • Context
  • AST Clean reminded that reformed safeguard mechanism commenced on Jul. 1, 2023.
  • It applies to safeguard facilities reporting for financial years (FY) on/after Jul. 1, 2023.
  • Under the reforms, existing facilities may apply for an EID; EIDsset facility-specific emissions-intensity (FSEI) for production variables at existing facility; financial years from 2023-24 to 2029-30 will use these FSEI values for annual baseline emissions.
  • Overview of Guideline and Template
  • Guideline above provides guidance regarding the preparation of an EID application.
  • Said responsible emitters can apply using the EID application form in Online Services.
  • In addition, AST Clean said EID application must come with independent audit report.
  • Template (v1.0) sets out how AST Clean expects an assurance engagement report to be structured for an audit of an application for an EID under the safeguard mechanism.
  • Further Detail re Guideline
  • The guideline was developed to assist responsible emitters to apply for an EID under the National greenhouse and energy reporting (safeguard mechanism) rule 2015.
  • Said this guidance must be read in conjunction with other prescribed legislation.
  • Guideline covers overview of 2023 safeguard mechanism reforms; application requirements; detailed application requirements; other matters including processing, decision-making and publication; as well as variations, remaking or replacing EIDs.
  • Further Detail re Template
  • It is not mandatory to follow this template, but it is recommended; in addition, it is the responsibility of auditors to ensure their audit reports meet legislative requirements.
  • Where text is included in brackets i.e. [audited body], information must be provided in line with suggested text; states some parts of templates are conditional on whether application for EID includes certain information - these parts are marked in brackets.
  • The auditor will need to ensure that the audit report includes all specified information.
  • Audit must be conducted per prescribed requirements for assurance engagements.
  • In addition, the template coversheet requires auditors to disclose both audit as well as non-audit fees, along with the hours that were spent on the audit by the audit team.
  • Eligibility and Deadlines
  • AST Clean set out various details re eligibility and deadlines; i.e. to be eligible for an EID, a facility must have had commercial production in any FY from 2017-18 to 2022-23; for an EID for FY2023-24, the responsible emitter must apply by Apr. 30, 2024.
  • For EIDs commencing in a future FY, responsible emitter must apply by Oct. 31 after end of that FY i.e. Oct. 31, 2025 for a determination commencing from FY2024-25.
  • Production Variable Review
  • AST DCCEEW completed a review of production variables; this was to ensure a comprehensive set of production variables for the reformed safeguard mechanism.
  • Following amendments to the rule on Sep. 29, 2023, an EID application can use the prescribed production variables; a further production variable review set for late 2023.
  • AST Clean said this includes certain production variables from schedule 1 of the rule.
  • Will update the EID form once new/revised production variables are published in rule.
  • Effectiveness
  • For an EID for FY2023-24, the responsible emitter must apply by Apr. 30, 2024.

Regulators AST Clean; AST DCCEEW
Entity Types Auditor; Corp
Reference Gd, PR 10/12/2023; Info 9/1/2023; ESG; Citation: National greenhouse and energy reporting (safeguard mechanism) rule 2015;
Functions Compliance; Environment; Financial; Legal; Reporting; Treasury
Countries Australia
Products Commodities; Corporate
Regions AP
Rule Type Final
Rule Date 10/12/2023
Effective Date 4/30/2024
Rule Id 188740
Linked to Rule :179812
Reg. Last Update 10/12/2023
Report Section International

Last substantive update on 10/24/2023