First Australian carbon units issued

The Clean Energy Regulator issued carbon units for the first time under the carbon pricing mechanism on 27 September 2012, signalling the commencement of the Australian carbon market. Three applicants received free carbon units under the Jobs and Competitiveness Program which were issued via the Australian National Registry of Emissions Units (ANREU).

Chloe Munro, Chair and Chief Executive Officer, said: “Issuing units for the first time is a very significant moment in the establishment of the carbon pricing mechanism.

“Industry assistance is a core component of the Clean Energy Future package administered by the Clean Energy Regulator.

“The issuance of the units signals the start of a carbon market in Australia,” she said.

The Jobs and Competitiveness Program provides ongoing assistance to companies that produce significant carbon emissions but are constrained in their capacity to pass through costs in global markets.

The first three applicants to have their applications approved were:

• Alcoa of Australia Limited for alumina refining
• Queensland Nitrates Pty Ltd for production of ammonia
• Queensland Nitrates Pty Ltd for production of ammonium nitrate

“These applicants have received around 6.37 million free carbon units which companies can now sell back to the government, transfer or use to acquit their future liability under the carbon pricing mechanism.”

Applications for the Jobs and Competitiveness Program for 2012-13 will close on 31 October 2012. Applicants can apply to the Clean Energy Regulator before 31 October 2012 to seek an extension to 31 December 2012.

Over the coming weeks, the Clean Energy Regulator will continue to process applications and issue further units under this program to more eligible applicants. The details of successful Jobs and Competitiveness Program applicants is available on the Clean Energy Regulator website.