|Date Ended:||31 December 2008|
|Policy Type:||Economic Instruments>Market-based instruments>GHG emissions trading, Regulatory Instruments>Obligation schemes|
|Agency:||New South Wales Government Department of Water and Energy|
|Legal References:||The Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2002|
The New South Wales (NSW) Greenhouse Gas Reduction Scheme (GGAS) establishes annual state-wide greenhouse gas reduction targets. Individual electricity retailers and certain other parties who buy or sell electricity in NSW are required to meet mandatory benchmark targets based on the size of their share of the electricity market. If the benchmark participants fail to meet their benchmarks, a penalty is assigned. To meet these targets participants must undertake emission abatement activities, creating and purchasing Greenhouse Abatement Certificates (representing 1 tonne of CO2 equivalent) which are surrendered to the compliance regulator. Demand-side abatement (DSA) or energy efficiency projects can be undertaken to produce abatement certificates. DSA is a reduction in greenhouse gas emissions resulting from actions taken on the customer side of an electricity meter. Under the GGAS, six types of projects are eligible for DSA accreditation: -Energy efficiency projects that modify existing energy consuming equipment, processes or systems (known as installations), or which modify the usage of those installations; -Energy efficiency projects that replace existing installations, with other (more energy efficient) installations; -Energy efficiency projects that install new installations that consume less electricity than other installations of the same type; -Energy efficiency projects that reduce electricity consumption where there is no negative effect on production or service levels; -Fuel switching projects that substitute one source of energy for another; -On-site electricity generation that replaces supply from the National Electricity Market. DSA projects must be either implemented in NSW after 1 January 2002 or implemented in the Australian Capital Territory (ACT) after 1 January 2004 (with some exceptions). In the first three years of the scheme, DSA certificate creation remained at under 2 million per year, rising to 9 to 10 million per year in 2006 and 2007. To date, the greenhouse gas abatement achieved by energy efficiency within the GGAS is equivalent to approximately 20 million tonnes. As the GGAS will be dissolved in the future Australian Emissions Trading Scheme (Carbon Pollution Reduction Scheme), the NSW government introduced an Energy Savings Scheme in 2009. DSA activities taking place until 31 December 2008 will be able to create Abatement Certificates, after which the activity will create Energy Saving certificates (see separate entry).
|This record is superseded by:||New South Wales Energy Savings Scheme|
Last modified: Thu, 14 Mar 2013 11:49:16 CET