The Federal Department of Industry, Sciences, Energy and Resources has announced changes to legislation for carbon credits to give projects, and those who manage them, more flexibility. The legislation, Carbon Credits (Carbon Farming Initiative) Amendment (Variation of Project Proponents) Rule 2020 commenced on 3 June 2020.
The Amendments enable transition of Emissions Reduction Fund (ERF) projects to new project proponents, when the original proponent is unwilling or unable to continue with the project. Previously, an ERF project could fail if the registered proponent abandoned or voluntarily revoked the project.
The Rule change means that a person who is responsible for the project, and has the legal right to carry it out, can apply to be listed as the proponent in certain circumstances. They can do this without needing the original proponent’s agreement. This will allow projects to continue, and gives landowners or others the opportunity to take on this role.
The amendments considered feedback received through consultation in early 2020.
