Perth-based carbon sequestration company CO2 Group Ltd has secured its first carbon credits from the New South Wales Greenhouse Gas Abatement Scheme, the final step in the company's commercialisation.
Perth-based carbon sequestration company CO2 Group Ltd has secured its first carbon credits from the New South Wales Greenhouse Gas Abatement Scheme, the final step in the company's commercialisation.
The full text of a company announcement is pasted below
CO2 Group Limited (and its related entities) is pleased to announce that the first carbon abatement certificates (carbon credits) from its CO2 AUSTRALIA™ Carbon Sequestration Program have been created and secured on the NSW Greenhouse Gas Abatement Scheme's (NSW Scheme) registry. This represents an important final milestone in the commercial development of the Company's CO2 AUSTRALIA™ Carbon Sequestration Program (Program).
This is the first time in Australia that a dedicated permanent mallee environmental planting has produced carbon abatement certificates (carbon credits) registered on a carbon trading scheme.
In November 2004, CO2 Australia Limited (CO2 Australia), a 100% owned subsidiary of CO2 Group was the first company to gain accreditation to create carbon credits from forests under any mandatory carbon trading scheme in the world, with its accreditation as an Abatement Certificate Provider under the NSW Scheme (Carbon Sequestration Rule Number 5).
Under the NSW Scheme an independent review of the Company's compliance with the Sequestration Rule, carbon accounting, measurement methodologies, monitoring, risk management and carbon sequestration forecasting is required to be undertaken prior to
accreditation.
Upon accreditation under the NSW Scheme, strict controls are implemented to ensure that:
- Only accredited and audited net annual increases in carbon stocks arising from specific forests can be used to create carbon abatement certificates commonly referred to as NGACs (carbon credits);
- NGACs can only be created that correspond to the minimum carbon stocks than can be maintained for 100 years;
- NGACs cannot be generated from sequestration that is used to offset emissions under any other Scheme;
- All NGACs are registered;
- Ownership of NGACs is traced via a Registry at all times;
- Provider of NGACs must remain in compliance with the Scheme at all times.
This important final milestone in the commercialisation of our Program involved the successful audit by an independent auditor appointed by the NSW Scheme administrator, the Independent Pricing and Regulatory Tribunal of the carbon accounting, monitoring, carbon measurement and mallee carbon sequestration modelling programs, specifically developed by CO2 Group (and its related entities) for our Program.
The NGAC's created will be used to meet a contractual carbon supply agreement with Origin Energy, a leading Australian energy company. This also represents an Australian first, as a carbon supply agreement was negotiated and secured first and then a dedicated mallee environmental planting was designed and established to meet carbon obligations under the contract.
The Managing Director of CO2 Australia, Mr Andrew Grant said "that this final milestone in the commercial development of our Program will provide both governments and corporate Australia further confidence in the ability of CO2 Australia to offer a low cost carbon abatement solution in an Australian environment that is rapidly moving towards a low carbon economy. Interest in our
Program has dramatically escalated with a number of new proposals being sought by corporate Australia and offshore entities".
Further, Mr Grant said "all those interested in our Program are attracted to its integrity and accountability - elements which are important when considering undertaking a significant carbon offset investment, particularly in the rapidly developing global carbon economy. The unique features of mallee eucalypts such as the ability to regrow after fire, withstand drought and overall hardiness ensure their long term survival."
"The high standards achieved, dedicated approach and accountability by those interested in our Program is why our Company secured accreditation under the NSW Scheme, became a Member of the Chicago Climate Exchange and are in the final stages of accreditation under the Federal Government's Greenhouse Friendly Program. The Company has also initiated the investigation of
other international accreditations which may be available for our Program".
Mr Grant also highlighted that "carbon sinks play a valuable role in addressing the climate change challenge in that they are the only abatement option that removes CO2 from the atmosphere and therefore represent an important component of climate policy".