Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
AUSTRALIAN NATIONAL REGISTRY OF EMISSIONS UNITS BILL 2011
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Climate Change and Energy Efficiency,
the Hon Greg Combet AM MP)
Table of contents
Glossary .................................................................................................. 1
General outline and financial impact ....................................................... 3
Chapter 1 Australian National Registry of Emissions Units ........... 5
Chapter 2 International units ....................................................... 11
Chapter 3 Publication of information ........................................... 25
Chapter 4 Review of decisions .................................................... 27
Chapter 5 Compliance and enforcement ..................................... 29
Chapter 6 Miscellaneous ............................................................. 39
Index ..................................................................................................... 43
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
Administrator The Carbon Credits Administrator
ACCU Australian carbon credit unit
CDM Clean Development Mechanism
CFI Carbon Farming Initiative
Consequential amendments Carbon Credits (Consequential Amendments)
bill Bill 2011
JI Joint Implementation
ITL International Transaction Log
Main bill Carbon Credits (Carbon Farming Initiative)
Bill 2011
NGER Act National Greenhouse and Energy Reporting
Act 2007
Registry bill Australian National Registry of Emissions
Units Bill 2011
The Registry The Australian National Registry of
Emissions Units
1
General outline and financial impact
Rationale for the Australian National Registry of Emissions
Units
The Australian National Registry of Emissions Units (the Registry) is an
electronic system which is used to ensure accurate accounting of the
issuance, holding, transfer, acquisition, cancellation, retirement and carry-
over of emissions units under the Kyoto Protocol.
The Registry was established under the Commonwealth's executive power
to meet one of Australia's commitments under the Kyoto Protocol and
does not currently have a legislative basis.
Since the Registry was opened in September 2009, organisations and
individuals have been able to apply to open accounts and participate in the
domestic and international trade of Kyoto units.
The Government intends to modify the Registry so that it can be used to
track the location and ownership of units issued under the Carbon
Farming Initiative (CFI), as well as meet ongoing obligations under the
Kyoto Protocol. The Registry would be maintained by the Administrator
of the CFI.
The main advantages of combining Kyoto Protocol and CFI functions in
one registry are that it will avoid duplication in account opening and
operating procedures, and keep implementation and transaction costs
down. For example, CFI project proponents will be able to receive
Australian carbon credit units, apply to have these exchanged for Kyoto
units (if they are eligible), and transfer the Kyoto units to an offshore
purchaser--through a single registry account, dealing with a single
Administrator.
Date of effect: Sections 3 to 97 will come into effect at the same time as
section 3 of the proposed Carbon Credits (Carbon Farming Initiative) Bill
2011. Sections 1 and 2 and any other sections will come into effect on the
date that the bill receives the Royal Assent.
Proposal announced: The Department of Climate Change and Energy
Efficiency (DCCEE) consulted with stakeholders on options for the CFI
design from October 2010 to early February 2011.
The consultation process involved individual meetings and workshops in
Canberra, Sydney, Adelaide, Melbourne, Perth, Brisbane, Darwin and
some regional centres, as well as a period for formal submissions. Over
350 individuals attended meetings with DCCEE, representing almost 250
organisations.
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Australian National Registry of Emissions Units Bill 2011
A consultation paper on the proposed design of the scheme was released
for public comment on 22 November 2010. The consultation paper
included the proposal to adapt the existing registry to meet the needs of
the CFI.
Approximately 280 submissions were received from a diverse range of
stakeholders, including farmers, regional bodies and scientific
organisations. Stakeholder feedback on registry proposals was broadly
positive.
Financial impact: The total cost of the Carbon Farming Initiative is
capped at $45.6 million over four years, with the following profile: $4.4
million in 2010-11, $16.1 million in 2011-12, $13.1 million in 2012-13
and $11.9 million in 2013-14. This includes $4 million to provide
information about the scheme to land mangers via Landcare.
4
Chapter 1
Australian National Registry of Emissions
Units
Outline of chapter
1.1 This chapter outlines the purposes and functions of the
Australian National Registry of Emissions Units (the Registry), the rules
for opening and closing accounts in the Registry, and the different types
of Registry accounts. The chapter also outlines the circumstances in which
an entry in the Registry may be corrected or rectified and outlines general
rules in relation to the Registry contained in Part 2 of the bill.
Context
1.2 Efficient electronic registries are essential for the
implementation of offsets schemes and the tracking of units which may be
issued to and traded by a range of businesses and individuals.
1.3 Registries have been established for this purpose under the
Kyoto Protocol Clean Development Mechanism, the NSW/ACT
Greenhouse Gas Reduction Scheme, and the offsets module of the CO2
Allowance Tracking System in the Regional Greenhouse Gas Initiative of
the North-East and Mid-Atlantic States of the United States.
1.4 The Greenhouse Friendly initiative did not have an electronic
registry and offset credits were tracked through records that were
maintained manually and abatement providers were required to inform the
administrator whenever they transferred their credits to a third party.
1.5 Australia established the Australian National Registry of
Emissions Units (the Registry) in order to meet international obligations
under the Kyoto Protocol. In December 2008, the Registry was linked to
the international Kyoto registry system, a network including other national
registries and the Clean Development Mechanism registry. Under the
Australian National Registry of Emissions Units Bill 2011, this Registry
will serve as:
· a registry for Australian carbon credit units under the Carbon
Credits (Carbon Farming Initiative) Bill 2011; and
· Australia's national registry for Kyoto units.
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Australian National Registry of Emissions Units Bill 2011
Detailed explanation of new law
Registry
1.1 A simplified outline of the Registry provisions is provided at the
beginning of Part 2 [Part 2, Division 1, clause 8].
1.2 The Registry will have a dual function -- namely, to act as a
registry for Australian carbon credit units and Australia's national registry
for Kyoto units [Part 2, Division 2, clause 9].
1.3 The Registry must be maintained by electronic means by the
Administrator. An electronic registry provides an efficient, reliable and
low-cost method for tracking a large number of units held and traded by a
large number of scheme participants. This requirement is also consistent
with Kyoto rules, which require that a Kyoto Party's national registry be
in the form of a `standardized electronic database which contains, inter
alia, common data elements relevant to the issuance, holding, transfer,
acquisition, cancellation and retirement of Kyoto units' [Part 2, Division 2,
clause 9(2)-(3)].
Registry accounts
1.4 The rules in relation to Registry accounts are contained in
Division 3 of Part 2 of the bill. A person must have a Registry account in
order to hold Australian carbon credit units, Kyoto units, or non-Kyoto
international emission units, as these units only exist within the electronic
registry system.
General rules
1.5 The Administrator will open registry accounts in the name of a
particular person [Part 2, Division 3, clause 10(2)].
1.6 Each Registry account will be identified by a unique number,
known as the `account number' of the Registry account [Part 2, Division 3,
clause 10(4)].
1.7 A person may have more than one Registry account [Part 2,
Division 3, clause 10(5)].
1.8 Entries in registry accounts must be made in accordance with the
main bill (for Australian carbon credit units) [Part 2, Division 4, clause 17(1)]
or this bill (for Kyoto units and non-Kyoto international emissions units)
[Part 2, Division 4, clause 17(2) and (3)].
Opening accounts -- general
1.9 The specific process for opening registry accounts will be
detailed in the regulations. These may make provisions for:
· the form of a request to open an account;
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Chapter 1 - Australian National Registry of Emissions Units
· any information that should accompany this request
including how the information should be verified; and
· any applicable fee; and
· procedures to enable the Administrator to require further
information before proceeding with consideration of the
request.
[Part 2, Division 3, clause 10(6)]
1.10 Regulations for registry accounts may provide for the
Administrator to require a person who requests a new Registry account to
provide further information relating to their application [Part 2, Division 3,
clause 10(6)(f)(i)].
1.11 The regulations may also provide that if the person fails to
provide this information, the Administrator may refuse to consider the
request or take any action to open the account [Part 2, Division 3, clause
10(6)(f)(ii)].
1.12 Safeguards against the unreasonable exercise of the power to
require information are described in Chapter 6 of this explanatory
memorandum.
Closure of accounts -- voluntary closure
1.13 The Administrator must close a person's Registry account [Part
2, Division 3, clause 15] if:
· the person requests the Administrator to close the account;
and
· there are no entries for any Australian carbon credit units,
Kyoto units and non-Kyoto international emissions units in
the account.
1.14 Unilateral closure of accounts by the Administrator in response
to contraventions of Registry requirements is covered in Chapter 5 of this
explanatory memorandum.
Change of a person's name
1.15 If a Registry account holder changes their name, they can apply
in writing to the Administrator to have their name changed in the Registry
[Part 2, Division 5, clause 18].
Opening Commonwealth Registry accounts
1.16 This section outlines Australia's obligations under the Kyoto
rules regarding the opening of Commonwealth Registry accounts. It does
not apply to companies or individuals.
1.17 The Kyoto rules stipulate that each Party's registry must contain
several specific types of accounts to facilitate the tracking of units and
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Australian National Registry of Emissions Units Bill 2011
registry transactions by the international transaction log. The mandatory
account types for each national registry are:
· holding account(s): each registry must contain at least one
account for holding the Party's Kyoto Protocol units. If, like
Australia has, the Party has authorised legal entities to
participate in the Kyoto mechanisms, then the registry must
also contain a separate holding account for each legal entity
· a retirement account into which the Party must transfer units
that it intends to use to meet its Kyoto target
· cancellation accounts: each registry must contain four
distinct types of cancellation accounts:
- a net source cancellation account that is reserved for units
that the Party cancels to account for net emissions for
forestry activities under Articles 3.3 and 3.4 of the Kyoto
Protocol
- a non-compliance cancellation account reserved for
transfer of units when the Compliance Committee
determines that the Party is in non-compliance with its
Article 3.1 commitment under the Kyoto Protocol
- a voluntary cancellation account for voluntary
cancellation of units not required by the Kyoto Protocol
rules
- a mandatory cancellation account for cancellation of
invalid units.
· replacement accounts: each registry must also contain at least
four replacement accounts:
- a temporary certified emission reduction replacement
account to receive units used to replace expired temporary
certified emission reductions
- a long-term certified emission reduction replacement
account to receive units used to replace expired long-term
certified emission reductions
- a long-term certified emission reduction replacement
account to receive units used to account for emissions
where a long-term certified emission reduction has been
subject to a reversal of storage
- a long-term certified emission reduction replacement
account to receive units used to replace long-term
certified emission reductions for which a required
certification report has not been submitted.
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Chapter 1 - Australian National Registry of Emissions Units
1.18 It is anticipated that the regulations will provide for
Commonwealth Registry accounts with designations for each of the
mandatory accounts. In the event that the Kyoto rules require a further
mandatory account at some point in the future it also can be added
through regulations [Part 2, Division 3, clause 12].
1.19 If the regulations provide for it, new Commonwealth registry
accounts can be opened at the direction of the Minister [Part 2, Division 3,
clause 13].
1.20 Kyoto units that have been transferred to a retirement account, a
cancellation account, or a replacement account cannot be transferred
further. For example, a Party would only transfer a Kyoto unit to the
retirement account if it intended to use that unit to meet its Kyoto target. It
would undermine the compliance regime of the Kyoto Protocol if Kyoto
units that had been retired could then be transferred for an additional use.
Similarly, Kyoto units transferred to a cancellation account are for all
intents and purposes cancelled, and therefore cannot be transferred to a
further account. Consistent with this, it is anticipated that the regulations
will provide that Kyoto units in Commonwealth accounts designated as a
retirement account, cancellation account, or replacement account, cannot
be transferred [Part 2, Division 3, clause 14].
Continuation of existing Registry and accounts
1.21 The bill provides for a smooth transition of the Registry from a
non-legislative to legislative basis, with minimal disruption to existing
account holders.
1.22 The Registry established under the Commonwealth's executive
power before the commencement of the legislation will continue in
existence after commencement of the legislation [Part 2, Division 2, clause 9].
1.23 Registry accounts that exist immediately before commencement
of the bill will be preserved following commencement. A person's
Registry account and the units contained in it will be recognised under the
bill when it commences. (See Item 19, Part 2, Schedule 1 of the
Consequential Amendments bill.)
Correction of Registry
Clerical errors / obvious defects
1.24 The Administrator may alter an entry in the Registry for the
purposes of correcting a clerical error or obvious defect [Part 2, Division 6,
clause 19(1)(a)]. Examples of clerical errors or obvious defects include a
typographical error or an entry which is clearly incorrect prima facie. The
purpose of the provision is to allow the Administrator to make a
correction of an uncontroversial nature.
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Australian National Registry of Emissions Units Bill 2011
1.25 Correction of unauthorised entries in the Registry is covered by
the Chapter 5 of this explanatory memorandum.
Kyoto units and non-Kyoto international emissions units
1.26 The Administrator may also make such alterations to the
Registry as the Administrator considers appropriate for the purposes of
ensuring that the relevant provisions of the Kyoto rules or the relevant
provisions of an international agreement, to the extent that the agreement
relates to a non-Kyoto international emissions unit, are complied with [Part
2, Division 6, clauses 20 and 21].
1.27 The Administrator may make the alterations as a result of a
request by a person to alter the Registry, or on the Administrator's own
initiative [Part 2, Division 6, clause 20(2)], [Part 2, Division 6, clause 21(2)].
1.28 Where the Administrator alters the Registry under these
provisions, the Administrator must publish a notice on the Administrator's
website setting out the details of the alteration [Part 2, Division 6, clause 20(3)],
[Part 2, Division 6, clause 21(3)].
Operation of the registry
1.29 Many actions in relation to the Registry, such as the transfer of
units may be done through electronic means only. An electronic notice
transmitted to the Administrator is defined in the bill [Part 1, clause 5].
Regulations may prescribe requirements in relation to the security and
authenticity of notices transmitted to the Administrator, including
identification checking processes and encryption of those processes [Part 1,
clause 5(2)]. This is to give the Administrator the power to determine the
level of encryption and identification checking required for different
actions in order to maintain the integrity of the Registry.
1.30 If an electronic notice is transmitted to the Administrator it is
taken to have been transmitted on the day on which the electronic
communication is sent [Part 1, clause 5(5)]. For example, an email sent to the
Administrator at 6:45 pm on Friday that waits on the server (not
downloaded) until Monday morning will be taken as received at 6:45 pm
on Friday. This will provide certainty for the sender.
Application and transitional provisions
1.31 Transitional provisions relating to Commonwealth registry
accounts are included in Part 2 of Schedule 1 of the consequential
amendments bill.
10
Chapter 2
International units
Outline of chapter
2.1 This chapter outlines procedures and requirements relating to
Kyoto units and non-Kyoto international units in the Registry.
Context
2.2 The Australian Government currently authorises legal entities to
transfer and acquire Kyoto units using the existing Australian National
Registry of Emissions Units. This enables businesses and individuals to
participate in trading of Kyoto Protocol units. In March 2011, over
40 accounts had been opened.
2.3 Internationally recognised emissions units can be used to link
carbon offsets and carbon trading schemes by providing a common
`currency' of exchange. For example, project proponents under the CFI
will be able to exchange certain Australian carbon credit units for Kyoto
units (assigned amount units and removal units) held in the Australian
Government's Registry account, and these in turn may be sold to
purchasers in overseas carbon markets where there is demand for these
units.
2.4 Provision for non-Kyoto international emissions units under the
bill will make it possible to recognise units of another country or region,
or units that may be established under an international agreement other
than the Kyoto Protocol. This would provide additional opportunities for
linking the CFI with other schemes.
Detailed explanation of new law
Kyoto units
2.5 The bill provides for the recognition in Australian legislation of
the emissions units created under the Kyoto Protocol, and sets out how
these units can be issued and transferred [Part 3]. The provisions relating to
Kyoto units have been drafted to ensure the Australian legislation is
consistent with the Kyoto Protocol rules.
The Kyoto rules
2.6 The bill defines the Kyoto rules, in summary, to mean:
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Australian National Registry of Emissions Units Bill 2011
· the Kyoto Protocol;
· a decision of the Meeting of the Kyoto Parties;
· a standard or other instrument adopted by the Meeting of the
Kyoto Parties for a purpose relating to:
- the Kyoto Protocol; or
- a decision of the Meeting of the Kyoto Parties; or
· a prescribed instrument that relates to:
- the Kyoto Protocol; or
- a decision of the Meeting of the Kyoto Parties [Part 1,
clause 4, definitions of `Kyoto rules', `Kyoto Protocol' and `decision
of the Meeting of the Kyoto Parties']
2.7 Defining the Kyoto rules in this way allows for all the relevant
elements of the Kyoto Protocol framework to be adopted for various
purposes in the bill. As the Kyoto Protocol itself only provides for the
overarching framework with relevant decisions made by the Meeting of
the Kyoto Parties providing the detail, the definition of Kyoto rules also
encompasses those decisions. For some purposes the Meeting of the
Kyoto Parties has adopted a standard or other instrument which governs
the implementation of the Kyoto Protocol. For example, the data exchange
standards contain the technical specifications for the operation of the
international transaction log and Kyoto registries. Therefore, the definition
of Kyoto rules also includes any such standards or instruments. The
definition also allows for regulations to identify any other instruments that
relate to the Kyoto Protocol or a decision of the Meeting of the Kyoto
Parties to be considered part of the Kyoto rules.
2.8 The various elements of the definition of Kyoto rules are also
intended to accommodate new and amended decisions, standards and
instruments, as well as amendments to the Kyoto Protocol as in force for
Australia. This is intended to allow the flexibility for the legislative
framework to accommodate new changes to the Kyoto rules without
necessarily requiring an amendment to the Act.
Kyoto units in the Australian Registry
2.9 All Kyoto units are able to be held and transferred in the
Australian Registry.
2.10 A Kyoto unit is defined for the purposes of the bill to mean an
assigned amount unit, a certified emission reduction, an emission
reduction unit, a removal unit or a prescribed unit issued in accordance
with the Kyoto rules [Part 1, clause 4, definition of `Kyoto unit']. The term
`certified emissions reduction' includes temporary certified emissions
reduction and long-term certified emissions reduction units, which are
issued for forestry projects carried out in developing countries.
12
Chapter 2 - International units
Prescribing units in regulations allows for the recognition of a new type of
Kyoto unit that could be adopted in the future without an amendment to
the Act.
2.11 Each type of Kyoto unit is also defined in clause 4 (Definitions).
2.12 Assigned amount units are issued by an Annex I Party (a
developed country with a target) to the Kyoto Protocol on the basis of its
assigned amount pursuant to Articles 3.7 and 3.8 of the Kyoto Protocol.
Australia has issued 2,957,579,143 assigned amount units, equivalent to
its target of 108 per cent of 1990 emissions over the five year period, 2008
2012.
2.13 Certified emission reductions are generated from Clean
Development Mechanism (CDM) projects under Article 12 of the Kyoto
Protocol. The CDM allows Annex I Parties such as Australia to
implement emission reduction projects in developing countries to receive
certified emission reductions and use these towards meeting their Kyoto
target.
2.14 Unlike emission reductions from other types of clean
development mechanism projects, those arising from afforestation or
reforestation activities receive either temporary certified emission
reductions or long-term certified emission reductions. These units have a
limited life: fewer than two commitment periods for temporary certified
emission reductions and between 20 and 60 years for long-term certified
emission reductions.
2.15 Removal units are issued by an Annex I Party on the basis of
land use, land-use change and forestry activities under Articles 3.3 and 3.4
of the Kyoto Protocol.
2.16 Emission reduction units are generated by Joint Implementation
projects under Article 6 of the Kyoto Protocol, where an Annex I Party
like Australia implements a project in the territory of another Annex I
Party and counts the resulting emission reduction units towards meeting
its own Kyoto target. Emission reduction units can be generated either in
another Annex I Party or in Australia.
2.17 Definitions of the various Kyoto units that may be issued in
developed countries (assigned amount units, removal units and emission
reduction units) indicate that it is immaterial whether the unit was issued
in or outside of Australia [Part 1, clause 4, definition of `assigned amount unit']
Part 1, clause 4, definition of `removal unit'] [Part 1, clause 4, definition of `emission
reduction unit']. This is included in the definition to clarify that the general
rule in section 21(1)(b) of the Acts Interpretation Act 1901 does not apply.
That rule is that `references to localities jurisdictions and other matters
and things shall be construed as references to such localities jurisdictions
and other matters and things in and of the Commonwealth...'
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Australian National Registry of Emissions Units Bill 2011
2.18 Kyoto units only exist within the international electronic registry
system established by the Kyoto rules. Each Kyoto unit has a unique serial
number within that electronic registry system that provides the relevant
detail of the unit (such as its type, commitment period, country of origin
and its sequence number) and allows for the unit to be tracked throughout
the registry system. Consistent with the Kyoto rules, the entry for a Kyoto
unit in a Registry account consists of its serial number [Part 3, clause 30].
Issue of units
Issue of Australia's assigned amount units
2.19 Under the Kyoto rules, Australia must issue a quantity of
assigned amount units equivalent to its initial assigned amount in its
national registry, before any transaction takes place for the relevant
commitment period.
2.20 The bill provides for the issue of Australia's assigned amount
units for a commitment period. Under this provision, the Minister may
direct the Administrator to issue to the Commonwealth, in accordance
with the Kyoto rules, a specified number of assigned amount units for a
specified commitment period. The Administrator must comply where such
a direction is given and will issue an assigned amount unit by making an
entry for the unit in the Commonwealth holding account for the relevant
commitment period in the Registry [Part 3, clause 31].
2.21 Australia's assigned amount units for the first commitment
period have been issued under the Commonwealth's executive power
before the passing of the legislation. The bill states explicitly that it does
not affect the validity of the issue of any such units [Part 3, clause 31(5)].
Issue of Australia's removal units
2.22 Under the Kyoto rules, removal units are issued in relation to net
removals of greenhouse gases by afforestation, reforestation and
deforestation activities. Australia has elected to report and publish annual
estimates of emissions and removals from activities identified under
Article 3.3. This decision is fixed for the first commitment period and
means that Australia must issue or cancel units (as appropriate) for the
relevant activities on an annual basis. If net removals do occur, it is
expected that Australia will issue a quantity of removal units in its
national registry equivalent to those removals.
2.23 The bill provides for the issue of Australia's removal units in the
Registry [Part 3, clause 32]. Under this provision, the Minister may direct the
Administrator to issue to the Commonwealth, in accordance with the
Kyoto rules, a specified number of removal units. The Administrator must
comply with any such direction. The Administrator will issue a removal
unit by making an entry for the unit in the Commonwealth holding
account for the relevant commitment period in the Registry.
14
Chapter 2 - International units
Issue of Australia's emission reduction units
2.24 Joint Implementation allows Annex I Parties under the Kyoto
Protocol to implement greenhouse gas reduction or removal projects in
other Annex I Parties in order to generate emission reduction units.
Emission reduction units are issued by converting specified assigned
amount units or removal units into emission reduction units within the
national registry of the host Party.
2.25 Through their National Authorities, Annex I Parties may
approve private entities' participation in Joint Implementation projects.
Rules for the approval of Joint Implementation projects will be the
responsibility of Australia's National Authority for the CDM and Joint
Implementation. The National Authority for the CDM and Joint
Implementation is already in existence, although its role is currently
limited to the approval of Australian entities' participation in CDM and
Joint Implementation projects abroad.
2.26 With the implementation of the scheme under the main bill, the
National Authority for the CDM and Joint Implementation will also
consider scheme projects for approval under the `Track 1' Joint
Implementation procedure. If a Carbon Farming Initiative project has
received approval as a Joint Implementation project from Australia's
National Authority for the CDM and Joint Implementation, it will be
eligible to generate and receive emission reduction units.
2.27 The intention is that scheme projects will be eligible for
determination as a Track 1 Joint Implementation project, subject to any
requirements imposed by the Kyoto rules. For example, proponents would
need to provide documentary evidence of approval of the project from
another Annex I Party before emission reduction units could be created.
2.28 Once a project has been approved as a Track 1 project, a
proponent could request conversion of either Kyoto ACCUs, assigned
amount units or removal units for emission reduction units [Part 3, clause 38]
(see also Part 11, Division 2, clause 157(1)(b)(iii) of the main bill). The
specific process for converting Kyoto ACCUs, assigned amount units or
removal units will be detailed in the regulations and will give effect to any
applicable Kyoto rules. This will include technical specifications to ensure
that conversions of Kyoto units that occur within the Australian registry
comply with the data exchange standards required by the international
transaction log.
Transfers of units
Transfers of Kyoto units
2.29 The Kyoto rules allow for Kyoto units to be transferred within
the international electronic registry system. The electronic registry system
comprises: the various national registries of Kyoto Parties; the CDM
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Australian National Registry of Emissions Units Bill 2011
registry in which certified emission reductions are issued; and the
international transaction log that allows for inter-country transfers of
units. Within each of the national registries, Kyoto units can also be
transferred between different accounts.
2.30 The bill defines the meaning of `transfer' in relation to different
types of transfers of Kyoto units [Part 3, clause 33]. The different types of
transfers are described below. In each case a `transfer' of a Kyoto unit will
consist of the removal of the entry of the unit from the initial account and
an entry for the unit in the receiving account.
2.31 The bill provides for four different types of transfers between
any of the account types in the national Registry (Chapter 1of this
explanatory memorandum discusses the different types of Registry
accounts). For example, a transfer can be: between holding accounts,
including a Commonwealth holding account; between a holding account
and a Commonwealth cancellation account; and between a
Commonwealth holding account and a Commonwealth retirement
account.
2.32 The Commonwealth will need to transfer Kyoto units between
the Commonwealth accounts and the same transfer arrangements will
apply. In this case the bill provides for the Minister to give a transfer
instruction to the Administrator [Part 3, clauses 34(5) and 35(7)].
2.33 Regulations can be made for, or in relation to, giving effect to
the Kyoto rules so far as the Kyoto rules relate to the issue of Kyoto units
or the transfer of a Kyoto unit: from a Registry account to a foreign
account; from a foreign account to a Registry account; or from a Registry
account to a Commonwealth Registry account [Part 3, clause 39(1)]. This is
intended to give full effect to the relevant Kyoto rules (as they exist from
time to time), with regulations providing the detail for the administration
of the Registry as it relates to Kyoto units. The regulations may prevent,
restrict or limit:
· the transfer of Kyoto units from a Registry account to a
foreign or voluntary cancellation account; or
· the transfer of Kyoto units from a foreign account to a
Registry account [Part 3, clause 39(2)].
Domestic transfers of Kyoto units
2.34 A holder of a Kyoto unit may instruct the Administrator to
transfer the unit within the Australian Registry: this is considered a
domestic transfer. The instruction to transfer will be by electronic notice
and will set out the account number of the account where the Kyoto unit is
held, the account number of the Registry account to which the unit is
being transferred, and other information as specified in regulations. The
regulations may specify additional information consistent with the
administrative requirements of the Registry [Part 3, clause 34].
16
Chapter 2 - International units
2.35 The Administrator must give effect to the transfer instruction
unless doing so would breach any regulations made to give effect to the
Kyoto rules or the management of the commitment period reserve or
regulations restricting transfers to Commonwealth Registry accounts [Part
3, clause 34(3)], [Part 3, clause 39], [Part 3, clause 41], [Part 3, clause 44].
2.36 Unlike Australian carbon credit units, the bill does not generally
confer the status of `personal property' on Kyoto units. Nonetheless,
Kyoto units held in the Australian Registry are to be treated as personal
property for the limited purposes of Bankruptcy Act 1966, Chapter 5 of
the Corporations Act 2001 (which deals with external administration), the
law relating to wills, intestacy and deceased estates and any other
prescribed purpose. This is in order to facilitate the transmission (or
disposition) of Kyoto units by operation of law in situations of
bankruptcy, external administration and death. In these situations the
transmission procedures are the same as for Australian carbon credit units
[Part 3, clause 45], [Part 3, clause 46], [Part 3, clause 47].
International transfers of Kyoto units
2.37 Under the Kyoto rules, Australia must satisfy a set of eligibility
requirements in order to participate in international emissions trading. If
Australia does not satisfy the set of eligibility requirements, no transfers
of Kyoto units will be allowed between the Australian Registry and a
foreign registry, and the international transaction log will block any such
transfers. Therefore, the ability to transfer Kyoto units from a foreign
registry to an account within the Australian Registry and the ability to
transfer Kyoto units from the Australian Registry to a foreign registry are
dependent on Australia satisfying the eligibility requirements.
2.38 Under the bill, if satisfied that Australia is in compliance with
those eligibility requirements, the Minister must make a written
declaration to that effect [Part 3, clause 37(1)]. The Minister must, in writing,
revoke such declaration if the Minister is no longer satisfied that Australia
is in compliance with the requirements [Part 3, clause 37(2)]. Neither the
instrument of declaration nor revocation is a legislative instrument [Part 3,
clause 37(3)]. The policy reason for this is that the Minister does not have
discretion as to whether Australia is eligible or not, so the declaration
should not be subject to potential disallowance. The enforcement branch
of the Compliance Committee under the Kyoto Protocol framework is
responsible for determining whether an Annex I Party is not in
compliance with the eligibility requirements. In practice, the UN Climate
Change Convention secretariat maintains a list of Parties that meet the
eligibility requirements and of those Parties that have been suspended on
its website.
2.39 Kyoto units can be transferred from an account in the Australian
Registry to a foreign registry, referred to as an outgoing international
transfer [Part 3, clause 35]. A transfer is only possible where there is a
17
Australian National Registry of Emissions Units Bill 2011
declaration in force that Australia has met the emissions trading eligibility
requirements discussed above [Part 3, clause 35(1)], [Part 3, clause 37].
2.40 A holder of a Kyoto unit can initiate an outgoing international
transfer by instructing the Administrator by electronic notification to
transfer the Kyoto unit from the holder's Registry account to either a
foreign account kept by another person or a foreign account kept by the
holder [Part 3, clause 35(1)]. Similar to domestic transfers, the notification
will need to specify the account number from which the units are to be
transferred and any other information as specified in regulations.
2.41 The specific process for administering outgoing international
transfers will be detailed in the regulations made to give effect to the
Kyoto rules. For example, the regulations may require the Administrator
to remove the entry for the unit from the relevant Registry account [Part 3,
clause 35(4)]. This would be consistent with the normal process of the
international registry system which is designed to ensure that units can be
appropriately transferred and tracked between different accounts and
national registries.
2.42 As noted above, the Administrator will not give effect to an
outgoing international transfer if the transfer would breach regulations
made for the purposes of the Kyoto rules [Part 3, clause 39], [Part 3, clause
35(3)(a)(i)].
2.43 Similarly, the Administrator will not give effect to an outgoing
international transfer if the transfer would breach regulations made to
manage the commitment period reserve [Part 3, clause 41], [Part 3, clause
35(3)(a)(ii)]. In order to address concerns that Annex I Parties could oversell
units and subsequently be unable to meet their own Kyoto target, each
Kyoto Party is required to hold a minimum level of Kyoto units in its
national registry. This minimum level is called the `commitment period
reserve'. If the transfer of a Kyoto unit from the Registry would result in
an infringement of the commitment period reserve, the international
transaction log will reject the entire transfer and direct the Administrator
to terminate the transfer. It is intended that regulations will outline the
procedures and measures to manage Australia's commitment period
reserve.
2.44 Kyoto units can be transferred from a foreign registry to an
account in the Australian Registry, referred to as an incoming
international transfer [Part 3, clause 36]. A transfer is only possible where
there is a declaration in force that Australia has met the emissions trading
eligibility requirements [Part 3, clause 36(1)], [Part 3, clause 37].
2.45 In practice, an incoming international transfer will be initiated
by a foreign registry. The foreign registry will notify the international
transaction log, which will verify the transaction. The international
transaction log will then notify the Administrator of the proposed
incoming transfer [Part 3, clause 36(1)(b)]. This process is described in the
18
Chapter 2 - International units
bill as happening according to Kyoto rules to enable flexibility should the
mechanism change in the future due to changes in the Kyoto rules.
2.46 An incoming international transfer will only be allowed where
the Kyoto unit is not specified in the regulations as a unit that cannot be
transferred to a Registry account [Part 3, clause 36(1)(c)]. In accordance with
section 13(3) of the Legislative Instruments Act 2003, the ability to
`specify' a Kyoto unit allows regulations to be made which identify a
class or classes of Kyoto units. This means that regulations can exclude
certain types of Kyoto units from being transferred into the Registry.
These regulations will not affect units already in the Registry.
2.47 This gives effect to the Government's policy position that it
would retain the right to exclude any type of Kyoto unit from being
transferred into the Registry. Currently there is no specific class of Kyoto
unit that has been identified for exclusion by regulation. The regulation-
making power provides flexibility to respond to future circumstances
without the need for an amendment.
2.48 An incoming international transfer will also only be allowed
where the transfer would not breach regulations made to give effect to the
Kyoto rules (discussed above) or regulations restricting transfers to
Commonwealth Registry accounts [Part 3, clause 36(1)], [Part 3, clause 39], [Part
3, clause 44].
2.49 Provided these requirements are met, the Administrator must
make an entry for the Kyoto unit being transferred in the receiving
Registry account. However, the Administrator may refuse to make an
entry if it has reasonable grounds to suspect that the instruction forwarded
from the international transaction log is fraudulent [Part 3, clause 36(2)].
Carry-over restrictions
2.50 Under the Kyoto Protocol, an Annex I Party may carry over to a
subsequent commitment period (that is, it may bank) certain Kyoto units
that have not been retired for that commitment period (used for
compliance with a Kyoto target), cancelled or transferred to a
Commonwealth replacement account. Under the current Kyoto rules, the
extent to which a Party can carry over units differs depending on the kind
of units involved:
· Emission reduction units (not converted from removal units)
can be carried over up to a maximum of 2.5 per cent of the
Party's initial assigned amount
· Certified emission reductions can be carried over up to a
maximum of 2.5 per cent of the Party's initial assigned
amount
· Assigned amount units can be carried over without restriction
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Australian National Registry of Emissions Units Bill 2011
· Removal units, emission reduction units converted from
removal units, temporary certified emission reductions and
long-term certified emission reductions cannot be carried
over.
2.51 Any Kyoto units that are not carried over must be transferred to
the mandatory cancellation account. This is a strict requirement of the
Kyoto rules and cannot be disregarded by Australia. All Kyoto Parties and
holders of Kyoto units are subject to the same carry-over restrictions.
2.52 The bill provides for regulations to be made detailing
arrangements for the carry-over of Kyoto units [Part 3, clause 40]. It is
intended that the regulations will:
· identify the units that can be carried over and any limits or
restrictions that are specified;
· identify the Kyoto units that cannot be carried over; and
· set out the procedures for the carry-over.
2.53 The regulations will also provide for the Administrator to
transfer to the mandatory cancellation account those Kyoto units that are
not carried over.
Temporary certified emission reductions and long-term certified
emission reductions
2.54 As discussed above, temporary certified emission reductions and
long-term emission reductions generated from forestry-based CDM
projects have a limited life after which they expire. Hence these units are
non-permanent.
2.55 Temporary certified emission reductions expire at the end of the
commitment period after the one in which they were issued, while long-
term certified emission reductions expire at the end of the crediting period
of the project. Account holders may transfer and hold these units within
the Australian Registry.
2.56 Where either a temporary certified emission reduction or a long-
term certified emission reduction is in a person's Registry account when it
expires, the Administrator must, in accordance with the regulations,
transfer the temporary or long-term certified emission reduction to a
mandatory cancellation account. This is required under the Kyoto rules.
The mechanical procedures for such cancellation will be contained in
regulations [Part 3, clause 42].
2.57 The Kyoto rules require replacement of long-term certified
emission reductions in certain circumstances. In brief, because long-term
certified emission reductions are valid for long periods, the projects that
generate them must be re-certified by an independent auditor every
5 years to demonstrate that the emission removals have occurred. When a
20
Chapter 2 - International units
certification report indicates that the greenhouse gas removals achieved by
a project have been reversed since the last certification (for example
where the trees are cut down), the Kyoto rules require replacement of the
affected long-term certified emission reductions. Replacement is also
required if the CDM Executive Board determines that the required
certification report has not been submitted.
2.58 The bill provides for the making of regulations to specify the
requirements for a person to replace long-term certified emission
reductions in their Registry account. The Administrator will be required to
transfer long-term certified emission reductions to a mandatory
cancellation account in the event that long-term certified emission
reductions are not replaced in accordance with the regulations. The
meaning of 'replacement' of a long-term certified emission reduction is set
out in the bill [Part 3, clause 43].
Transfers to Commonwealth Registry accounts
2.59 Regulations made pursuant to the bill may prevent, restrict or
limit the transfer of Kyoto units to a Commonwealth Registry account
from either an Australian Registry account or a foreign account [Part 3,
clause 44].
2.60 Commonwealth Registry accounts established under the
Regulations may include:
· a retirement account for each commitment period into which
Australia will transfer Kyoto units to comply with its
emission reduction target;
· voluntary and mandatory cancellation accounts for Kyoto
units;
· replacement accounts for replacing temporary and long term
certified emission reduction; and
· a relinquished unit account [Part 2,Division 3, clause 12].
2.61 There is no need for account holders other than the
Commonwealth to transfer Kyoto units to certain Commonwealth
accounts. Accordingly, the regulations will prevent account holders (for
example, accidentally) transferring to the wrong account and being unable
to recover their units. For example, Kyoto units may not be transferred to
the Commonwealth relinquished units account, as this is only for certain
relinquished Australian emissions units. Kyoto units also may not be
transferred to certain cancellation accounts and replacement accounts.
Non-Kyoto international emissions units
2.62 As discussed above, a non-Kyoto international emissions unit is
defined to mean: a prescribed unit issued in accordance with an
international agreement (other than the Kyoto Protocol); or a prescribed
21
Australian National Registry of Emissions Units Bill 2011
unit issued outside Australia under a law of a foreign country [Part 1, clause
4, definition of `non-Kyoto international emissions unit']. A unit would only be
prescribed as a non-Kyoto international emissions unit where the intention
is to add to the types of international units that can held in the Australian
Registry. That is, all non-Kyoto international emissions units will also
come within the definition of `eligible international emissions units' [Part
1, clause 4, definition of `eligible international emissions units'].
2.63 Like Australian emissions units and Kyoto units, an entry for a
non-Kyoto international emissions unit on the Registry will consist of the
serial number of the unit [Part 4, clause 49].
2.64 The bill provides a framework with the detailed arrangements
for transfers of non-Kyoto international emissions units to be specified in
regulations [Part 4, clause 57]. This allows the transfer arrangements of such
units to be in accordance with, for example, any associated treaty or
agreement.
Transfers of non-Kyoto international emissions units
2.65 The bill provides for the meaning of `transfer' in relation to
different types of transfers of non-Kyoto international emissions units in
the Registry [Part 4, clause 50]. As with other emissions units, a transfer will
involve the removal of the entry of the unit from the registry account of
the person initiating the transfer and the making of an entry for the unit in
the receiving registry account. Several different types of transfer have
been identified. The unit can be transferred from: a registry account to a
registry account of another person; a registry account to another registry
account owned by the same person; a registry account to an account in a
foreign registry owned by the same person; or an account in a foreign
registry to an account in the Australian registry.
2.66 It is possible that the Commonwealth may wish to transfer non-
Kyoto international emissions units. If so, the Minister has the power to
instruct the Administrator to undertake the transfer [Part 4, clause 51(5)], [Part
4, clause 52(7)]. Otherwise the general provisions for transfers would apply.
2.67 A person who holds a non-Kyoto international emissions unit
can instruct the Administrator to transfer the unit to an account kept by
another person or to another account kept by the same person within the
Registry [Part 4, clause 51]. The instruction will be via electronic
notification and will include the account number of the originating
account and the account number of the receiving account and any other
information that is specified in regulations governing the administration of
the registry.
2.68 The bill allows for conditions relating to domestic transfer of
non-Kyoto units to be provided for in regulations. If the Administrator
receives an instruction and any such conditions are satisfied then the
Administrator must give effect to the transfer [Part 4, clause 51].
22
Chapter 2 - International units
2.69 The bill makes provision for non-Kyoto international emissions
units to be personal property for limited purposes to facilitate their
transmission in situations of bankruptcy, external administration and death
[Part 4, clause 54], [Part 4, clause 56]. The bill does not affect the creation or
enforcement of, or any dealings with (including transfers of), equitable
interests in non-Kyoto international emissions units [Part 4, clause 55].
2.70 Non-Kyoto international emissions units can be transferred from
an account in the Australian registry to an account in a foreign registry,
referred to as an outgoing international transfer of non-Kyoto international
emissions units [Part 4, clause 52]. Again the transfer could be to an account
kept by another person or kept by the same person, with the instruction via
electronic notification and containing the relevant account details and
other information.
2.71 Regulations may make further provisions in relation to non-
Kyoto international emissions units. For example, they might detail any
conditions that may apply to outgoing international transfers of non-Kyoto
international emissions units. The administrative arrangements for giving
effect to the transfer could also be specified in regulations [Part 4, clause 57].
2.72 Non-Kyoto international emissions units can be transferred from
a foreign account to an account in the Registry, referred to as an incoming
international transfer of non-Kyoto international emissions unit [Part 4,
clause 53]. In this case the Administrator would receive an instruction from
a foreign account and, where the conditions as specified in the regulations
are met, the Administrator would make an entry for the non-Kyoto
international emissions unit in the nominated account in the Australian
registry.
2.73 The Administrator may refuse to affect the transfer if the
Administrator has reasonable grounds to suspect that the instruction is
fraudulent [Part 4, clause 53(2)].
Voluntary cancellation of units
2.74 Kyoto units and non-Kyoto international emissions units may be
voluntarily cancelled under Part 6 of the bill. This implements the
Government's policy that voluntary cancellation allows individuals and
organisations to contribute to stronger national climate change mitigation
by reducing the supply of eligible emissions units.
2.75 The process for applying to cancel Kyoto units and non-Kyoto
international emission units under the Registry bill is identical to the
process for applying to cancel Australian carbon credits under Part 14 of
the main bill. For units that may be subject to voluntary cancellation, the
registered holder of the emissions units transmits an electronic notice to
the Administrator requesting the Administrator to cancel the units [Part 6,
clause 65(1) and (2)], [Part 6, clause 66(1) and (2)]. The notice must specify the
units to be cancelled and the person's relevant Registry account(s).
23
Australian National Registry of Emissions Units Bill 2011
2.76 The action to be taken by the Authority varies depending on the
type of unit.
2.77 If the request relates to a Kyoto unit then, if the Administrator is
satisfied it would be in accordance with the Kyoto rules, the Administrator
must transfer the Kyoto unit to a voluntary cancellation account before the
end of the `true-up period' for the relevant Kyoto commitment period [Part
6, clause 65(3)]. The `true-up period' is the period following each Kyoto
commitment period during which Kyoto units from the relevant
commitment period can be transferred and acquired for the purposes of
meeting Annex 1 countries' emissions reduction targets.
2.78 The Administrator must publish information about the number
of voluntarily cancelled Kyoto units on its website, including the name of
the person who held the units and the total number of Kyoto units that
have been cancelled [Part 6, clause 65(4)].
2.79 The voluntary cancellation provisions allow private entities to
cancel Kyoto units, which means they cannot be used by Australia or
another Kyoto Party for the purposes of meeting their emission reduction
targets and therefore leads to additional global abatement.
2.80 If the request relates to a non-Kyoto international emissions unit,
further action by the Authority is dependent on the regulations [Part 6,
clause 66(3)]. The bill provides for the voluntary cancellation of non-Kyoto
units but the detailed arrangements will be specified in regulations which
would not be made until an international unit has actually been prescribed
as a non-Kyoto international emissions unit.
2.81 The Administrator must publish information about the number
of voluntarily cancelled non-Kyoto international emissions units on its
website, including the name of the person who held the units and the total
number of non-Kyoto international emissions units that have been
cancelled [Part 6, clause 66(4)].
24
Chapter 3
Publication of information
Outline of chapter
3.1 The chapter relates to the various requirements in the bill for
information to be made public. It focuses on Part 5 of the bill.
Context
3.2 A range of information relating to the Registry will be published
to ensure a high level of transparency in the operation of the CFI, to
provide information relevant to carbon market participants, and to meet
specific international obligations applying to registry functions under the
Kyoto Protocol.
3.3 Further requirements for publication of information and secrecy
are contained in Parts 12 and 27 of the main bill.
3.4 Part 5 of the bill includes a simplified outline [Part 5, clause 58].
Detailed explanation of new law
Information about holders of Registry accounts
3.5 Information will be made publicly available regarding holders of
Registry accounts and regarding Kyoto units and non-Kyoto international
emissions units. Publication of information relating to Australian carbon
credit units is addressed in the main bill.
3.6 The Administrator must publish on its website and keep up-to-
date the name of each person with a Registry account and the person's
address last known to the Administrator [Part 5, clause 59].
3.7 The regulations may also require the Administrator to publish:
· information required to be published under the Kyoto rules
[Part 5, clause 60(1)];
· the total number of specified Kyoto units in Registry
accounts [Part 5, clause 60(2)]; and
· when Kyoto units and non-Kyoto international emissions
units are voluntarily cancelled, the name of the person and
the total number of units cancelled [Part 5, clauses 62 and 63].
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Australian National Registry of Emissions Units Bill 2011
3.8 The Administrator will be required to publish statements setting
out concise descriptions of the characteristics of prescribed eligible
international emissions units and prescribed non-Kyoto international
emissions units within specified time limits [Part 5, clause 61].
3.9 These statements will assist in providing information to retail
investors about emissions units. No product disclosure statement or
prospectus would be issued by the Commonwealth under the relevant
provisions of the Corporations Act 2001 in relation to emissions units.
This will therefore reduce the compliance burden under the Scheme.
26
Chapter 4
Review of decisions
Outline of chapter
4.1 This chapter addresses provisions in Part 8 of the bill, which
provide for merits review of decisions.
Context
4.2 The Government has committed to sound appeals processes for
decisions under the CFI, including judicial review pursuant to the
Administrative Decisions (Judicial Review) Act 1977 and merits review.
4.3 The objective of the review provisions in the bill is to ensure
that decisions are correct and preferable according to the facts on which a
decision was based, that all persons affected by a decision are treated
fairly, and to encourage quality, consistency, openness and accountability
in decisions made by the Administrator.
Detailed explanation of new law
Decisions which are subject to merits review
4.4 Certain decisions of the Administrator are subject to merits
review [Part 8, clause 82].
4.5 The list does not include those decisions where the
Administrator has no discretion, including for example a decision to
transfer temporary certified emission reductions or long-term certified
emission reductions to a mandatory cancellation account in accordance
with the regulations [Part 3, clause 42(2)].
4.6 The list also does not include a declaration by the Minister that
Australia is in compliance with eligibility requirements in order to
participate in international emissions trading or the revocation of such a
declaration [Part 3, clause 37(1)] and [Part 3, clause 37(2)]. Neither the
instrument of declaration nor revocation is a legislative instrument [Part 3,
clause 37(3)]. The reason for this is that the Minister does not have
discretion as to whether Australia is eligible or not, so the declaration
should not be subject to potential disallowance. The enforcement branch
of the Compliance Committee under the Kyoto Protocol framework is
responsible for determining whether an Annex I Party is not in
27
Australian National Registry of Emissions Units Bill 2011
compliance with the eligibility requirements. In practice, the UN Climate
Change Convention secretariat maintains a list of Parties that meet the
eligibility requirements and of those Parties that have been suspended on
its website.
4.7 These exceptions to merits review are consistent with
Government policy on administrative review and the Commonwealth
Administrative Review Council's publication What Decisions should be
Subject to Merit Review?
4.8 The bill provides for two avenues of merit review: internal
reconsideration by the Administrator and external review by the
Administrative Appeals Tribunal.
Internal reconsideration
4.9 Where the decision is made by a delegate of the Administrator,
the person affected by the decision must first apply for internal
reconsideration by the Administrator [Part 8, clause 83]. This arrangement
provides an opportunity for the affected person to put their case directly to
the Administrator, through a process that will generally be less costly and
time consuming than external review.
4.10 An application for internal reconsideration must be made within
28 days after being informed of the decision or, if the Administrator
extends the deadline, within the extended deadline [Part 8, clause 83(4)].
4.11 The Administrator must make a decision on the application
within 90 days of receiving it [Part 8, clause 85].
4.12 That decision may be to affirm, vary or revoke the decision and
a written statement of reasons must be provided to the applicant within
28 days after making the reconsidered decision [Part 8, clause 84].
Application to the Administrative Appeals Tribunal
4.13 If the person affected is not satisfied with the outcome of
internal reconsideration of a decision, he or she may apply to the
Administrative Appeals Tribunal to review the decision. If the original
decision was not made by a delegate of the Administrator, and was made
by the Administrator, the person affected may apply directly to the
Tribunal without going through internal reconsideration [Part 8, clause 86].
28
Chapter 5
Compliance and enforcement
Outline of chapter
5.1 The bill contains a number of measures designed to maintain the
integrity of the registry through preventing or rectifying non-compliance
with registry requirements, including:
· identity checks before a registry account can be opened [Part
2, Division 3, clause 11];
· criminal penalties for fraudulent or dishonest conduct [Part 2,
Division 7, clause 23], [Part 2, Division 7, clause 24];
· civil penalties for use and disclosure of information obtained
from the registry [Part 2, Division 7, clause 26] and [Part 7] and
failing to comply with prescribed requirements in relation to
the registry or requirements to notify [Part 2, Division 7, clause
27] and [Part 7];
· Powers to suspend registry operations temporarily, to address
threats to the system [Part 2, Division 7, clause 28];
· Powers to close the accounts of any persons who breach their
registry obligations [Part 2, Division 3, clause 16];
· Powers for the Administrator [Part 2, Division 6, clause 19] or a
court [Division 6, clause 22(3)] to rectify the registry; and
· Discretion not to transfer units where the Administrator has
reasonable grounds to suspect that the transaction is
fraudulent [Part 3, clause 36(2)], [Part 4, clause 53(2)].
5.2 These complement measures in the Carbon Credits (Carbon
Farming Initiative Bill) 2011 and Carbon Credits (Consequential
Amendments) Bill 2011, which provide additional legislative safeguards
against fraudulent activities.
Context
5.3 Effective security and anti-fraud measures are required to
safeguard the integrity of the Registry. Misuse of the Registry could
undermine public and stakeholder confidence and could result in financial
losses to businesses that rely on a secure system to meet legislative and
contractual obligations.
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Australian National Registry of Emissions Units Bill 2011
5.4 The Carbon Credits (Carbon Farming Initiative) Bill 2011
contains a number of measures designed to prevent fraudulent activities,
including:
· a rigorous `fit and proper' person test before project
proponents are eligible to put forward offsets projects in
Part 4;
· relinquishment requirements to claw back falsely obtained
Australian carbon credit units in Division 2 of Part 7, and
Part 13;
· criminal penalties for engaging in avoidance schemes in
Part 22.
5.5 In addition, the Carbon Credits (Consequential Amendments)
Bill 2011 contains amendments to other Commonwealth legislation to
provide safeguards against fraud and other criminal activities, including:
· brokers will be required to report suspicious transactions
involving ACCUs and Kyoto units as part of the Anti-Money
Laundering and Counter-Terrorism Financing Act 2006;
· ACCUs and international emissions units will be treated as
financial products under the Corporations Act 2001 and the
Australian Securities and Investments Commission Act 2001
which will enable investigation and prosecution of
manipulation in the carbon market.
5.6 The current registry has rigorous technical architecture in line
with Defence Signals Directorate IT security requirements and United
Nations Framework Convention on Climate Change standards. Hosting
arrangements, system password and logon procedures also accord with the
Australian Government Protective Security Manual. A proof of identity
regime, consistent with the Anti-Money Laundering and Counter-
Terrorism Financing guidelines, must be passed before users obtain
system access credentials.
Detailed explanation of new law
Identity checks
5.7 Applicants who wish to open an account in the Registry will be
required to undergo identification procedures to be prescribed in
regulations [Part 2, Division 3, clause 11]. This requirement, along with other
measures such as early detection of suspicious transactions, can be
effective in mitigating the risk of fraud and other criminal activities.
5.8 The bill allows for the regulations to provide for transaction
limits to be placed on registry accounts, depending on the stringency of
30
Chapter 5 - Compliance and enforcement
the procedure used to verify the identity of the applicant. This is a
streamlining feature of the CFI, which is intended to reduce account costs
and administrative hurdles for low transaction (and low risk) account
holders, while enabling stringent proof of identify to be applied to other
account holders [Part 2, Division 3, clause 11].
Criminal offences for improper use of the Registry
5.9 A person commits an offence if the person makes, causes or
concurs in the making of an entry in the Registry which the person knows
is false [Part 2, Division 7, clause 23]. It is also an offence to tender in
evidence a document which falsely purports to be a copy or extract from
an entry in the Registry or of an instrument given to the Administrator
under Part 2 [Part 2, Division 7, clause 24].
5.10 The purpose of these offences is to maintain the integrity of the
Registry and to ensure that it accurately reflects unit holdings and actions
such as transfers.
Nature of the offences
5.11 Making a false entry in the Registry [Part 2, Division 7, clause 23]
includes hacking into the registry and moving Australian carbon credit
units from account to account, or making entries for non-existent units. It
could involve the creation of counterfeit Australian carbon credit units
(which could be sold to innocent purchasers) or to the stealing of units
from one account and placing them in another. It could have a significant
impact on specific account holders and on the functional integrity and
reputation of the CFI. For these reasons, the maximum penalty is 7 years
or 2,000 penalty units, or both. The phrase `penalty unit' is defined in
clause 4 by reference to its meaning in section 4AA of the Crimes Act
1914 [Part 1, clause 4, definition of `penalty unit'].
5.12 An offender may make a substantial profit out of undertaking
this conduct and the penalty therefore needs to take this into account.
5.13 Section 4B of the Crimes Act 1914 provides that the standard
penalty/imprisonment ratio is 5 penalty units to 1 month imprisonment.
For example, 60 penalty units would equate to 12 months imprisonment.
This ratio should be followed unless there are cogent reasons to depart
from it, for example, in the case of corporate crimes a departure may be
warranted to counter potential financial gains from the commission of an
offence.
5.14 Penalties proposed in clause 23 of the bill depart from this ratio
as 7 years imprisonment would normally equate to 420 penalty units. The
reason for this departure is that the financial gain which could be made
from tampering with the Registry would amount to several lifetimes'
worth of imprisonment on the standard ratio. The level of financial
31
Australian National Registry of Emissions Units Bill 2011
penalty that would discourage an individual from making a false entry
needs to be set with reference to the potential gains from that conduct.
5.15 Tendering a document as evidence which falsely purports to be a
copy or extract from an entry in the Registry or of an instrument given to
the Administrator under Part 2 is also a criminal offence. Conduct of this
type impacts upon the integrity of the registry and the reliance third
parties may place upon it [Part 2, Division 7, clause 24]. It could involve the
creation of a document which purports to show that the perpetrator has a
substantial holding of Australian carbon credit units. This could then be
used for other misleading behaviour, for example through obtaining bank
loans on the basis of the purported unit holdings.
5.16 The standing of the registry as an accurate source of information
about unit holdings and transfers and the like is recognised elsewhere in
the bill. For example, the Administrator may supply a copy of or extract
from the Registry or any instrument lodged with the Administrator under
Part 2, certified by an official of the Administrator, which will be
admissible in all courts and proceedings without further proof of the
original. This facilitates proceedings by avoiding the need to produce an
original [Part 2, Division 7, clause 25].
5.17 A criminal offence for tendering a false document as evidence of
an entry from the Registry could therefore have a significant impact on the
functional integrity and reputation of the CFI.
Civil penalties
Which provisions are civil penalty provisions?
5.18 The bill contains civil penalty provisions including ancillary
contraventions, such as aiding a contravention.
List of civil penalty provisions:
26 Use and disclosure of information obtained from the
Registry
27 Regulations about the Registry
5.19 A person must not use or disclose information obtained from the
Registry about another person to contact or send material to them, unless
the information is relevant to the holding, or rights associated with the
holding of, Australian carbon credit units, Kyoto units or non-Kyoto
international emissions units recorded in the Registry. This is a civil
penalty provision and is analogous to the limitation on the use of share
registry data and is included to prevent the use of Registry data for
purposes such as advertising (spam) [Part 2, Division 7, clause 26] and [Part 7].
5.20 Additional provisions in relation to the Registry may be made in
the regulations [Part 2, Division 7, clause 27]. For example, it is expected that
regulations will be required to set out detailed rules for the use of accounts
32
Chapter 5 - Compliance and enforcement
and the registry. Failure to comply with the regulations may lead to the
imposition of a civil penalty [Part 2, Division 7, clause 27(6)] and [Part 7].
5.21 The reason for choosing to make these civil penalty provisions is
that contravention of these provisions does not involve conduct of such
serious moral culpability that criminal prosecution is warranted.
5.22 Part 7 of the bill provides for the pecuniary penalties that are
payable for contraventions of civil penalty provisions.
Civil penalty orders -- jurisdiction and amount
5.23 Both the Federal Court and competent State and Territory courts
can make civil penalty orders [Part 7, clause 68].
5.24 It is for the Court to determine whether a person has contravened
a civil penalty provision and to order the person to pay a penalty [Part 7,
clause 69].
5.25 The maximum amount of the pecuniary penalty is specified, as
are the matters which the court may have regard to in determining the
amount of the penalty [Part 7, clauses 69(3), (4) and (5)].
5.26 The maximum amount of the penalty depends on the person
committing the offence and the nature of the offence. A natural person
who illegally uses of discloses information obtained from the Registry
(i.e. `spam' offences) [Part 2, Division 7, clause 26(1), (2) or (5)] may be subject
to a maximum penalty of 100 penalty units [Part 7, clause 70(5)(a)]. The
maximum penalty for a corporation for the same offences is 500 penalty
units [Part 7, clause 70(4)(a)].
5.27 For all other offences, the maximum penalty for a natural person
is 2,000 penalty units [Part 7, clause 70(5)(b)]. For a corporation, all other
offences carry a maximum penalty of 10,000 penalty units [Part 7, clause
70(4)(b)].
5.28 Matters which the court may have regard to in determining the
amount of the penalty include the nature and extent of the contravention,
previous contraventions, and, in the case of a body corporate, whether it
has exercised due diligence to avoid the contravention [Part 7, clause 69(3)].
These factors reflect the approach indicated in A Guide to Framing
Commonwealth Offences, Civil Penalties and Enforcement Powers. They
follow the Australian Law Reform Commission Report 95: Principled
Regulation: Federal Civil and Administrative Penalties in Australia.
Evidential burden
5.29 There are two civil penalty provisions which are framed in such
a way as to alter the usual evidential burden.
5.30 The first is clause 26 which addresses misuse of information
obtained from the Registry. It is framed as a broad prohibition with
33
Australian National Registry of Emissions Units Bill 2011
exceptions to restrict the uses to which this information can be put [Part 2,
Division 7, clause 26].
5.31 The second is clause 78 which relates to a mistake of fact and, in
general terms, provides that a person is not liable to have a civil penalty
order made against him for a contravention if the person considered
whether or not facts existed and was under a mistaken but reasonable
belief about those facts and had those facts existed, the conduct would not
have constituted a contravention of the civil penalty provision. A person
who wishes to rely on the relevant subsections bears an evidential burden
in relation to that matter [Part 7, clause 78].
5.32 This approach is justified where a matter is peculiarly within the
defendant's knowledge and not available to the prosecution. This is
particularly the case in mistake of fact and misuse of information from the
Registry.
Continuing contraventions
5.33 A person may contravene the civil penalty provision for failure
to comply with the requirements of the regulations relating to the Registry
[Part 2, Division 7, clause 27(4)]. Where that contravention relates to a
requirement for the holder of a Registry account to notify a matter to the
Administrator [Part 2, Division 7, clause 27(2)], the holder of that account
commits a separate contravention on each of the days on which it fails to
comply [Part 7, clause 80(2)].
5.34 The penalty is limited to 5 per cent (per day) of the penalty for
the initial contravention.
Other provisions about civil penalties
5.35 While the Crown in each of its capacities is bound by the Act,
the Crown is not liable to a pecuniary penalty. This protection does not
apply to authorities of the Crown or to administrative penalties or late
payment penalties [Part 1, clause 6].
5.36 Other aspects of the civil penalty regime are also addressed in
Part 7. Of particular significance are:
· Only the Administrator may apply for a civil penalty order
[Part 7, clause 70]
· A requirement that the rules of evidence and procedure for
civil matters be applied when hearing proceedings for a civil
penalty order [Part 7, clause 73].
5.37 Other provisions address the grouping of proceedings [Part 7,
clause 71], a six-year time limit on initiating civil penalty proceedings [Part
7, clause 72] and the relationship between civil and criminal proceedings
initiated with respect to the conduct which is substantially the same [Part 7,
clauses 74 to 77].
34
Chapter 5 - Compliance and enforcement
5.38 Special provision is made for the state of mind of a person who
does not comply with a requirement of the Administrator under clause 79,
for example, to give the Administrator particular information [Part 7, clause
79]. In proceedings for a civil penalty order against a person, it will not be
necessary to prove that person's state of mind, i.e. the person's intention,
knowledge, recklessness, negligence, or any other state of mind. The
reason for this provision is that it is reasonable to expect those subject to
the provision will take steps to guard against any inadvertent
contravention.
Suspension of operation of the registry
5.39 There may be times when the Administrator will need to
temporarily suspend the operation of the Registry to ensure its integrity.
The Authority may also need to suspend the operation of the Registry to
prevent, mitigate or minimise the effect of abuse or criminal activity
relating to the Registry [Part 2, Division 7, clause 28(1)(b)]. For example, the
Administrator may need to suspend the operation of the Registry if the
Administrator believes that a person has hacked into the registry and is in
the process of transferring units from another person's account into their
own. If this happens, the Administrator will need to be able to stop any
subsequent transactions (for example, transferring units to an overseas
account) until such time as the criminal activity has ceased. The bill also
provides that the Administrator may defer taking action until the
suspension ends [Part 2, Division 7, clause 28(3)].
5.40 Suspension of the operation of the Registry may also be
necessary to allow the Administrator to carry out maintenance [Part 2,
Division 7, clause 28(1)(a)].
5.41 Notice of the suspension must be published on the
Administrator's website [Part 2, Division 7, clause 28(3)]. This will help to
Registry account holders to make arrangements to minimise disruption or
inconvenience during suspension of the Registry.
Closure of accounts
5.42 To allow the Administrator to respond to security breaches in
the Registry, the regulations may give the Administrator the power to
close an account without the account holder's consent [Part 2, Division 3,
clause 16].
5.43 The Administrator may only close an account if the account
holder has contravened or is contravening Part 2 of the bill or the
Regulations [Part 2, Division 3, clause 16(2)(a)]. The Administrator must also
give the account holder 30 days notice prior to closing the account [Part 2,
Division 3, clause 16(2)(b)].
5.44 If the Administrator closes an account holder's account for this
reason, then the regulations may provide that all the units in the account
35
Australian National Registry of Emissions Units Bill 2011
are cancelled or transferred to cancellation accounts, depending on the
nature of the unit [Part 2, Division 3, clause 16(3), (4) and (5)].
5.45 If the Administrator has closed a person's account for these
reasons, the Administrator must also refuse to open another registry
account for that person [Part 2, Division 3, clause 16(6)].
5.46 This allows the Administrator to take action to stop account
holders who have breached registry requirements from operating registry
accounts.
5.47 To ensure that the Administrator is accountable for these
actions, closures of accounts and cancellations of units must be recorded
in the Registry [Part 2, Division 3, clause 16(7)] and the decision is reviewable
[Part 8, clause 82].
Rectification of the Registry
Unauthorised use
5.48 The Administrator has a power to correct errors in the Registry
resulting from unauthorised actions, for example by a hacker. The
Administrator may alter the Registry to correct entries made without
sufficient cause, wrongly existing, or wrongly removed [Part 2, Division 6,
clause 19(1)(b), (c) and (d)].
5.49 Surveillance of the Registry by the Administrator should alert
the Administrator immediately to any unauthorised entries to the Registry.
These provisions will allow the Administrator to immediately respond to,
and correct, entries made by persons who have hacked into the Registry to
change their own, or other, accounts for their own benefit. As the power to
maintain the Registry inherently involves correction of errors to ensure
that the Registry properly records the interests of account holders, this is
an exercise of an administrative power conferred on the Administrator.
5.50 A decision of the Administrator to correct an entry in the
Registry, or to refuse to do so, is a reviewable decision [Part 8, clause 82].
Rectification by the court
5.51 The courts historically have had a role in making decisions in
relation to the content of registers that record title to property.
5.52 A person aggrieved by one of the following matters may make
an application for rectification of the Registry to the Federal Court in
respect of:
· the omission of an entry
· an entry made without sufficient cause
· an entry wrongly existing
· an error or defect in an entry
36
Chapter 5 - Compliance and enforcement
· an entry wrongly removed [Part 2, Division 6, clause 22(1)].
5.53 The Administrator may also apply to the Federal Court for a
rectification order if the Administrator is concerned about any of those
matters [Part 2, Division 6, clause 22(2)].
5.54 There may be some circumstances where errors appear in the
registry but the cause is not clear-cut and the Administrator would prefer
the court to decide (for example, where there is a potential error in the
registry but there are ongoing disputes between the beneficiaries of the
estate of the account holder).
5.55 The Administrator must comply with an order of the court
directing rectification of the Registry [Part 2, Division 6, clause 22(8)].
Discretion not to transfer units
5.56 The Administrator also has the discretion not to transfer units
where the Administrator has reasonable grounds to suspect that the
transaction is fraudulent [Part 3, clause 36(2)] [Part 4, clause 53(2)].
Example 1.1 Fraudulent transfer of non-Kyoto international
emissions units
The Administrator receives an application to transfer non-Kyoto
international units from a foreign account to an account held by a
person under the Registry. However, standard procedures undertaken
by the Authority, including checking the transaction with the relevant
foreign registry, indicate that the transfer may be fraudulent. Although
the Administrator is normally required to act on an application for an
incoming transfer of units where it meets legislated criteria, the
Administrator exercises his or her discretion not to transfer the units
while further investigations are undertaken.
37
Chapter 6
Miscellaneous
Outline of chapter
6.1 This chapter addresses the miscellaneous provisions (other than
transitional provisions) in Parts 1 (Preliminary) and (Miscellaneous) of the
bill, which are not addressed in other chapters of this explanatory
memorandum. These provisions include functions of the Administrator,
concurrent operation of State and Territory law, delegation by the
Minister, and commencement.
Context
6.2 The bill includes a simplified outline of the Act [Part 1, clause 3].
Parts 1 to 8 also have their own simplified outline
Detailed explanation of new law
Commencement
6.3 The substantive provisions of the Registry bill (sections 3 to 97)
will commence at the same time as section 3 of the Carbon Credits
(Carbon Farming Initiative) Act 2011, which will be on a day fixed by
Proclamation [Part 1, clause 2]. As the Registry is crucial for
implementation of the CFI, the main bill cannot commence before the
Registry bill receives the Royal Assent.
Computerised decision-making
6.4 The Administrator will have the capacity to make use of
computer programs for the purposes of decision making [Part 9, clause 87].
This provision will enable the Administrator to automate decision making
where the criteria for decisions are precisely defined, for example in
giving effect to instructions in electronic notices from Registry account
holders to transfer units from one account to another.
Administrator's power to require further information
6.5 Where the regulations allow the Administrator to request further
information following the receipt of an application, such as an application
to open a Registry account, the Administrator may only request
information that is relevant to the person's request and must exercise the
39
Australian Registry of Emissions Units Bill 2011
power to request further information in a reasonable way [Part 9, clause 88].
This provision will provides confidence to applicants that their
applications will be processed by the Administrator exercising his or her
powers within reasonable limits.
Delegation by the Minister
6.6 The Minister will be able to delegate any or all of his or her
functions or powers under the Act or regulations to the Secretary or a
senior executive service (SES), or acting SES, employee in the
Department. This power does not extend to making, varying or revoking
legislative instruments. The delegate must comply with any direction
given by the Minister [Part 9, clause 89].
Delegation by the Secretary
6.7 The Secretary will also be able to delegate any or all of his or
her functions or power under the Act to a SES or acting SES employee in
the Department, for example the power to direct the Administrator to issue
a specified number of removal units to the Commonwealth under
clause 32(2) of the bill. The delegate must comply with any direction
given by the Secretary [Part 9, clause 90].
Liability for damages
6.8 Certain specified persons are not liable to an action for damages
in relation to acts done in good faith (or omissions) in the performance of
their functions or powers under the Act or the associated provisions. (The
provision includes where such acts or omissions are done in the purported
performance of functions or powers.) The persons include persons with
functions or powers under the bill, including the Minister, the Minister's
delegates, the Secretary, the Secretary's delegates, the Administrator and
delegates of the Administrator [Part 9, clause 91]. This type of provision is
common in Commonwealth legislation and enables persons with statutory
functions to perform their functions without fear of legal action being
taken against them, as long as they act in good faith.
Executive power
6.9 The Act does not, by implication, limit the executive power of
the Commonwealth [Part 9, clause 92].
6.10 This is to make it clear that the bill does not, for example, limit
the Commonwealth's executive power to take various actions to meet
Australia's obligations under the Kyoto Protocol.
Notional payments by the Commonwealth
6.11 The Crown, in each of its capacities, will be bound by the bill.
While the bill does not make the Crown liable to a pecuniary penalty or to
40
Chapter 6 - Miscellaneous
be prosecuted for an offence, this protection does not apply to an
administrative penalty or late payment penalty under the Act [Part 1, clause
6].
6.12 To accommodate this, by ensuring such amounts are notionally
payable by the Commonwealth, provision is made for the Minister for
Finance to give written directions relating to, among other things, transfer
of amounts within or between accounts operated by the Commonwealth
[Part 9, clause 93].
Compensation for acquisition of property
6.13 If the operation of the Act or regulations would result in an
acquisition of property from a person other than on just terms, the
Commonwealth is liable to pay a reasonable amount of compensation to
the person. Provision is included for the institution of proceedings to
recover such compensation if agreement has not been reached. The terms
`acquisition of property' and `just terms' have the same meaning as in
section 51(xxxi) of the Constitution [Part 9, clause 94].
Regulations
6.14 The bill includes a general regulation-making power [Part 9,
clause 97].
6.15 The regulations may apply, adopt, or incorporate with or without
modification, a matter contained in another instrument as it exists from
time to time, despite subsection 14(2) of the Legislative Instruments Act
2003. The instrument referred to must be published on the Administrator's
website unless this would infringe copyright [Part 9, clause 95]. For
example, regulations could apply parts of a standard published by the
International Organization for Standardisation, as in force from time to
time.
6.16 In addition, the regulations may confer a power to make a
decision of an administrative character on the Administrator [Part 9, clause
96].
41
Index
Part 1: Preliminary
Bill reference Paragraph
number
Part 1, clause 2 6.3
Part 1, clause 3 6.2
Part 1, clause 4, definition of `assigned amount unit' 2.17
Part 1, clause 4, definition of `eligible international emissions units' 2.62
Part 1, clause 4, definition of `emission reduction unit' 2.17
Part 1, clause 4, definition of `Kyoto unit' 2.1
Part 1, clause 4, definition of `non-Kyoto international emissions unit' 2.62
Part 1, clause 4, definition of `penalty unit' 5.11
Part 1, clause 4, definitions of `Kyoto rules', `Kyoto Protocol' and 2.6
`decision of the Meeting of the Kyoto Parties'
Part 1, clause 5 1.29
Part 1, clause 5(2) 1.29
Part 1, clause 5(5) 1.3
Part 1, clause 6 5.35, 6.11
Part 2: Australian National Registry of Emissions Units
Bill reference Paragraph
number
Part 2, Division 1, clause 8 1.1
Part 2, Division 2, clause 9 1.2, 1.22
Part 2, Division 2, clause 9(2)-(3) 1.3
Part 2, Division 3, clause 10(2) 1.5
Part 2, Division 3, clause 10(4) 1.6
Part 2, Division 3, clause 10(5) 1.7
Part 2, Division 3, clause 10(6) 1.9
43
Australian National Registry of Emissions Units Bill 2011
Part 2, Division 3, clause 10(6)(f)(i) 1.1
Part 2, Division 3, clause 10(6)(f)(ii) 1.11
Part 2, Division 3, clause 11 5.1, 5.7, 5.8
Part 2, Division 3, clause 12 1.18, 2.60
Part 2, Division 3, clause 13 1.19
Part 2, Division 3, clause 14 1.2
Part 2, Division 3, clause 15 1.13
Part 2, Division 3, clause 16 5.1, 5.42
Part 2, Division 3, clause 16(2)(a) 5.43
Part 2, Division 3, clause 16(2)(b) 5.43
Part 2, Division 3, clause 16(3), (4) and (5) 5.44
Part 2, Division 3, clause 16(6) 5.45
Part 2, Division 3, clause 16(7) 5.47
Part 2, Division 4, clause 17(1) 1.8
Part 2, Division 4, clause 17(2) and (3) 1.8
Part 2, Division 5, clause 18 1.15
Part 2, Division 6, clause 19 5.1
Part 2, Division 6, clause 19(1)(a) 1.24
Part 2, Division 6, clause 19(1)(b), (c) and (d) 5.48
Part 2, Division 6, clause 20(2) 1.27
Part 2, Division 6, clause 20(3) 1.28
Part 2, Division 6, clause 21(2) 1.27
Part 2, Division 6, clause 21(3) 1.28
Part 2, Division 6, clause 22(1) 5.52
Part 2, Division 6, clause 22(2) 5.53
Part 2, Division 6, clause 22(8) 5.55
Part 2, Division 6, clauses 20 and 21 1.26
Part 2, Division 7, clause 23 5.1, 5.9, 5.11
Part 2, Division 7, clause 24 5.1, 5.9, 5.15
Part 2, Division 7, clause 25 5.16
Part 2, Division 7, clause 26 5.1, 5.19, 5.30
Part 2, Division 7, clause 26(1), (2) or (5) 5.26
Part 2, Division 7, clause 27 5.1, 5.20
Part 2, Division 7, clause 27(2) 5.33
Part 2, Division 7, clause 27(4) 5.33
44
Index
Part 2, Division 7, clause 27(6) 5.2
Part 2, Division 7, clause 28 5.1
Part 2, Division 7, clause 28(1)(a) 5.4
Part 2, Division 7, clause 28(1)(b) 5.39
Part 2, Division 7, clause 28(3) 5.39, 5.41
Part 3: Kyoto units
Bill reference Paragraph
number
Part 3 2.5
Part 3, clause 30 2.18
Part 3, clause 31 2.2
Part 3, clause 31(5) 2.21
Part 3, clause 32 2.23
Part 3, clause 33 2.3
Part 3, clause 34 2.34
Part 3, clause 34(3) 2.35
Part 3, clause 35 2.39
Part 3, clause 35(1) 2.39, 2.40
Part 3, clause 35(3)(a)(i) 2.42
Part 3, clause 35(3)(a)(ii) 2.43
Part 3, clause 35(4) 2.41
Part 3, clause 36 2.44
Part 3, clause 36(1) 2.44, 2.48
Part 3, clause 36(1)(b) 2.45
Part 3, clause 36(1)(c) 2.46
Part 3, clause 36(2) 2.49, 5.1, 5.56
Part 3, clause 37 2.39, 2.44
Part 3, clause 37(1) 2.38, 4.6
Part 3, clause 37(2) 2.38, 4.6
Part 3, clause 37(3) 2.38, 4.6
Part 3, clause 38 2.28
Part 3, clause 39 2.35, 2.42, 2.48
Part 3, clause 39(1) 2.33
45
Australian National Registry of Emissions Units Bill 2011
Part 3, clause 39(2) 2.33
Part 3, clause 40 2.52
Part 3, clause 41 2.35, 2.43
Part 3, clause 42 2.56
Part 3, clause 42(2) 4.5
Part 3, clause 43 2.58
Part 3, clause 44 2.35, 2.48, 2.59
Part 3, clause 45 2.36
Part 3, clause 46 2.36
Part 3, clause 47 2.36
Part 3, clauses 34(5) and 35(7) 2.32
Part 4: Non-Kyoto international emissions units
Bill reference Paragraph
number
Part 4, clause 49 2.63
Part 4, clause 50 2.65
Part 4, clause 51 2.67, 2.68
Part 4, clause 51(5) 2.66
Part 4, clause 52 2.7
Part 4, clause 52(7) 2.66
Part 4, clause 53 2.72
Part 4, clause 53(2) 2.73, 5.1, 5.56
Part 4, clause 54 2.69
Part 4, clause 55 2.69
Part 4, clause 56 2.69
Part 4, clause 57 2.64, 2.71
Part 5: Publication of information
Bill reference Paragraph
number
Part 5, clause 58 3.4
46
Index
Part 5, clause 59 3.6
Part 5, clause 60(1) 3.7
Part 5, clause 60(2) 3.7
Part 5, clause 61 3.8
Part 5, clauses 62 and 63 3.7
Part 6: Voluntary cancellation of emissions units
Bill reference Paragraph
number
Part 6, clause 65(1) and (2) 2.75
Part 6, clause 65(3) 2.77
Part 6, clause 65(4) 2.78
Part 6, clause 66(1) and (2) 2.75
Part 6, clause 66(3) 2.8
Part 6, clause 66(4) 2.81
Part 7: Civil penalty orders
Bill reference Paragraph
number
Part 7 5.1, 5.19, 5.20
Part 7, clause 68 5.23
Part 7, clause 69 5.24
Part 7, clause 69(3) 5.28
Part 7, clause 70 5.36
Part 7, clause 70(4)(a) 5.26
Part 7, clause 70(4)(b) 5.27
Part 7, clause 70(5)(a) 5.26
Part 7, clause 70(5)(b) 5.27
Part 7, clause 71 5.37
Part 7, clause 72 5.37
Part 7, clause 73 5.36
Part 7, clause 78 5.31
Part 7, clause 79 5.38
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Australian National Registry of Emissions Units Bill 2011
Part 7, clause 80(2) 5.33
Part 7, clauses 69(3), (4) and (5) 5.25
Part 7, clauses 74 to 77 5.37
Part 8: Review of decisions
Bill reference Paragraph
number
Part 8, clause 82 4.4, 5.47, 5.50
Part 8, clause 83 4.9
Part 8, clause 83(4) 4.1
Part 8, clause 84 4.12
Part 8, clause 85 4.11
Part 8, clause 86 4.13
Part 9: Miscellaneous
Bill reference Paragraph
number
Part 9, clause 87 6.4
Part 9, clause 88 6.5
Part 9, clause 89 6.6
Part 9, clause 90 6.7
Part 9, clause 91 6.8
Part 9, clause 92 6.9
Part 9, clause 93 6.12
Part 9, clause 94 6.13
Part 9, clause 95 6.15
Part 9, clause 96 6.16
Part 9, clause 97 6.14
48
Index
49