Annual report 2008-09

Letter of transmittal

Section 1: Secretary's review

Section 2: Overview

Section 3: Report on performance

• Output 1.2
• Output 1.3

Section 4: Management and accountability

Section 5: Financial statements

Section 6: Other statutory reporting

Section 7: References

Section 3: Report on performance

Output 1.1

Reducing Australia's greenhouse gas emissions

The Emissions Trading Division, the Strategies and Coordination Division, the Greenhouse and Energy Reporting Office, the Adaptation and Land Management Division and the Australian Climate Change Regulatory Authority Group contribute to Output 1.1: Reducing Australia’s greenhouse gas emissions, by:

• providing advice on the design of the Carbon Pollution Reduction Scheme (CPRS) and preparing supporting legislation
• coordinating a comprehensive policy framework across government to reduce Australia’s greenhouse gas emissions through renewable energy and energy efficiency measures, the CPRS and programs to support voluntary action
• developing and implementing measures to complement the CPRS and assist in the transition to a low-carbon economy, through cross-portfolio and state and territory engagement—measures include the expanded national Renewable Energy Target and programs to drive voluntary action and investment in energy efficiency
• measuring, analysing and reporting Australia’s carbon pollution to underpin ongoing policy and program development and implementation
• administering the mandatory national greenhouse and energy reporting framework established by the National Greenhouse and Energy Reporting Act 2007
• providing analysis and advice on the economic impacts of policy options for reducing emissions, including the CPRS, and projecting national and domestic emissions.

Analysis of performance

The Australian Government has put in place a comprehensive framework to reduce Australia’s greenhouse gas emissions with ambitious medium-term and longer term targets. This includes an integrated suite of market-based solutions and comprehensive measures to drive transformational change of the economy and set Australia’s emissions on a permanent downwards trajectory.

Building a comprehensive framework to reduce carbon pollution and adapt to its impact

In 2008–09, the department built the foundations for a sustainable response to climate change that will protect Australia’s people and natural environment, support a strong low-carbon economy and contribute to a global response. To support this work, the department analysed existing and proposed policy responses to climate change commissioned by the government in 2007 and completed in the latter half of 2008. The independent Garnaut Climate Change Review (a joint initiative of the Australian Government and state and territory governments) and modelling by the Department of the Treasury (Treasury) together constituted a thorough analysis of the economic impacts of climate change and the costs of a response. The Garnaut Climate Change Review confirmed the need for a broad-based emissions trading scheme as a central policy to drive carbon pollution reduction.

The government commissioned the Strategic Review of Australian Government Climate Change Programs (the Wilkins Review) to ensure that its climate change programs would be appropriate once a price was placed on carbon pollution. The Wilkins Review matched work being undertaken through the Council of Australian Governments (COAG) to ensure that climate change programs across all jurisdictions complement the CPRS.

The government released its response to the Wilkins Review, coordinated by the department across portfolios, on 12 May 2009. Through the review, the government refocused climate change programs to ensure that existing and planned measures will be appropriate once the government implements a carbon price signal. The government’s response also ensures that climate change programs provide a comprehensive package to meet the government’s environmental objectives and to help transition Australia to a low-carbon economy.

Together, these reviews evaluated evidence from all facets of science, the economy and society, and enabled an integrated policy response to climate change.

Working towards nationally consistent climate change measures

In 2008–09, the department provided secretariat and policy support for the Working Group on Climate Change and Water, which was established by COAG in 2007 to ensure an effective national response to climate change. This forum is chaired by the Minister for Climate Change and Water and includes high-level officials drawn from agencies of the Australian Government and state and territory governments. The department also supported sub-groups to address renewable energy and complementary measures. Other sub-groups of the working group considered water, adaptation and energy efficiency.

Through its support to this working group in 2008–09, the department advanced:

• the design of the expanded national Renewable Energy Target (RET) scheme
• consultation with the states and territories on the CPRS
• the principles for jurisdictions to review existing climate change measures to form a nationally consistent set complementing the CPRS (the principles were endorsed by COAG in November 2008)
• energy efficiency policies
• a cooperative approach to climate change adaptation
• streamlining of greenhouse and energy reporting.

On 30 April 2009, COAG reaffirmed its commitment to introduce a comprehensive national strategy for energy efficiency to help households and businesses reduce their energy costs, improve the productivity of our economy and reduce the cost of carbon pollution reductions under the CPRS. The strategy will encompass all areas in the economy where substantial cost-effective energy efficiency opportunities exist—commercial and residential buildings, appliances and equipment, industry and business, government, transport, skills, innovation, advice and education. COAG agreed in principle to develop a range of new measures in these areas.

Expanding Australia’s Renewable Energy Target

In 2008–09, the department worked closely with states and territories through the COAG Working Group on Climate Change and Water to finalise the design of the expanded RET scheme. COAG agreed to the scheme design on 30 April 2009. Legislation to implement the scheme was introduced into parliament in June 2009.

The expanded RET scheme will accelerate deployment of a range of renewable energy technologies—wind, solar, biomass and geothermal power—over the next two decades, while the CPRS will drive renewable energy deployment over the longer term.

The expanded RET scheme will contribute to the government’s commitment to ensure that 20 per cent of Australia’s electricity supply under the RET comes from renewable sources by 2020. The target is more than four times larger than the former target level of 9,500 gigawatt hours. The expanded RET scheme brings federal, state and territory schemes into a single national scheme.

The department consulted extensively with stakeholders on the design of the scheme. An options paper released through the COAG working group in July 2008 attracted submissions from 160 stakeholders. In December 2008, exposure draft legislation to implement the expanded RET scheme was released together with a working group consultation paper on the treatment of emissions-intensive, trade-exposed industries. A further 230 submissions were received and considered in the finalisation of the legislation.

In 2009–10, the department will develop associated regulations to support implementation of the RET once the legislation has been passed. New targets will commence from 1 January 2010. See the feature on the RET at the end of this chapter.

Encouraging voluntary action and investment in energy efficiency

Climate Change Action Fund

To assist businesses and community organisations to make the transition to a low-carbon future, the department coordinated whole-of-government policy development and established frameworks for the $2.75 billion Climate Change Action Fund. The fund will provide targeted assistance to businesses, community sector organisations, workers, regions and communities to smooth the transition to a carbon-constrained economy.

In 2008–09, the department undertook design work on key programs for the fund, to support Australian businesses and community groups to take early action in identifying energy efficiency opportunities and investing in energy improvement before the introduction of the CPRS. The department also began project planning to advise businesses on the operation of the CPRS, and its potential opportunities and impacts.

Voluntary carbon offsets

In December 2008, the department released a draft National Carbon Offset Standard and a discussion paper for public consultation. The standard will help build consumer confidence in the voluntary carbon offset market and the integrity of the carbon offset products. It includes principles and approaches for calculating the carbon footprints of organisations and products.

During 2008–09, the department’s Greenhouse Friendly program accredited two additional products and service providers and 11 new carbon-neutral products. The department approved six new abatement projects and 2.8 million tonnes of emissions abatement.

In June 2009, the department delivered a series of public consultation workshops around Australia. Over 250 people participated in the workshops, which were designed to seek community and business views on how to acknowledge voluntary action on climate change when the government sets future CPRS caps.

On 4 May 2009, the government announced a mechanism to ensure that GreenPower purchases will tighten future CPRS caps and achieve emissions reductions beyond Australia’s national target.

Australian Carbon Trust

Work began to establish the Australian Carbon Trust, announced by the government in May 2009. The government has committed $75.8 million over five years to the trust to support action by households and business on climate change. The trust will disburse the funds through two mechanisms:

• $50 million in seed funding to the Energy Efficiency Trust. This trust will bring together public and private seed funding, business skills and culture, and technical knowledge, to invest in energy efficiency in commercial buildings and other business operations.
• $25.8 million for the Energy Efficiency Savings Pledge Fund. The fund will develop web-based tools so that households can calculate their energy use and potential dollar savings from adopting energy efficiency activities. Individuals can pledge the resulting savings, or any other amount, to the pledge fund, which will buy and cancel emissions units to create additional emissions reductions.

Community and stakeholder engagement

In 2008–09, the department undertook a range of communication activities to increase awareness and understanding of climate change and the government’s policies and programs.

The department launched the ‘Think Climate, Think Change’ campaign in July 2008 to provide information on climate change and to encourage people to have their say about action on climate change. The campaign was complemented by a series of public information sessions held in all capital cities to provide information about the proposed CPRS and the National Greenhouse and Energy Reporting Act 2007.

In December 2008, the department held a series of public sessions in capital cities, advertised in the national press, to provide information on the Carbon Pollution Reduction Scheme: Australia’s Low Pollution Future (the CPRS White Paper). Two sessions each were held in Sydney and Melbourne, and one session each in Adelaide, Brisbane, Canberra, Darwin, Hobart and Perth. More than 2,500 people registered to attend the events. In addition, 36 regional centres participated in a live broadcast via satellite television. Participants were able to telephone during the broadcast to ask questions.

Key stakeholder groups, such as industry, agriculture, social and environmental peak organisations, and state and territory government officials, engaged in targeted roundtable consultations to inform the design of the CPRS during 2008.

In April 2009, the Minister for Climate Change and Water invited primary and secondary school students to participate in the Think Climate, Think Change Schools Competition. The popular competition ran from 28 April to 24 June 2009. More than 7,500 students in Years 3 to 9 submitted entries in a wide range of forms, including short stories, poems, songs and artwork, to answer the question ‘What does climate change mean to me?’ Entries were received from every state and territory; some came from as far away as Thursday Island and the Cocos (Keeling) Islands.

See the feature on ‘working with industry and the community’ at the end of this chapter.

Specifying the medium-term emissions target and trajectory

In December 2008, the government concluded that fair and effective global action capable of stabilising concentrations of greenhouse gases at 450 parts per million of carbon dioxide equivalents, or lower, would be in Australia’s national interest.

On 4 May 2009, the government announced an extended target for emissions reductions that included a 25 per cent reduction in emissions from 2000 levels by 2020, in the context of global action consistent with this goal, along with a clear statement of the essential characteristics of such action. These constitute the conditions under which Australia would be willing to reduce its emissions by 25 per cent.

This commitment builds on and extends the target range of a 5 per cent to 15 per cent reduction from 2000 levels that was announced in the December 2008 CPRS White Paper. If global commitments in the next few years fall short of achieving stabilisation at 450 parts per million of carbon dioxide equivalents or lower, the government remains committed to this medium-term target range. This includes an unconditional commitment to reduce emissions to 5 per cent below 2000 levels by 2020, regardless of the commitments and actions of other nations. It also includes a commitment to reduce emissions by up to 15 per cent below 2000 levels by 2020 in the context of an international agreement in which major developing economies commit to substantially restrain emissions, and advanced economies take on commitments comparable to Australia’s, but global action falls short of stabilisation at 450 parts per million of carbon dioxide equivalents or lower. See the feature on ‘achieving Australia’s 2020 emissions reductions targets’ at the end of this chapter.

To provide certainty and clarity for business, the government also committed to announcing an indicative national emissions trajectory, representing Australia’s emissions reduction commitment over a period of years. This trajectory will be announced at least five years in advance and, in conjunction with the government’s projections of uncovered emissions, will be used to set scheme caps. The government has announced the first three years of the indicative trajectory, for the financial years 2010–11 to 2012–13 inclusive, involving national emissions of 109 per cent, 108 per cent and 107 per cent of 2000 levels respectively. A further two years of trajectory will be announced in 2010.

The medium-term target and indicative trajectory refer to levels of national emissions, representing domestic emissions adjusted for imports or exports of emissions credits recognised under Australia’s climate change commitments, such as the Kyoto Protocol.

Updating projections of emissions and abatement

The December 2008 CPRS White Paper provided additional information on projections, in the context of the government’s announcement of the target range of a 5 per cent to 15 per cent reduction by 2020 from 2000 levels and updated inventory data.

The CPRS White Paper foreshadowed the release of updated ‘Tracking to Kyoto’ projections. The release planned for April 2009 was deferred so that updated economic forecasts and the phased introduction of the CPRS (including the $10 per tonne fixed price for the first year) could be incorporated into the projections. The updated projections were released in August 2009.

Developing Australia’s Carbon Pollution Reduction Scheme

In 2008–09, the department focused on finalising the policy design for the CPRS and supporting legislation.

The reporting year commenced with the release in July of the CPRS Green Paper, which canvassed options for the design of the scheme. More than 1,000 submissions were received from the public in response to the Green Paper. These submissions informed decisions subsequently incorporated into the CPRS White Paper released in December 2008.

The CPRS White Paper set out a comprehensive blueprint for all design elements of the scheme, as well as Australia’s medium-term target range for reducing carbon pollution and measures to assist households and industry to adjust to the impact of the carbon price.

On 4 May 2009, the Prime Minister announced a strengthened Australian emissions target and measures to assist industry to adjust to the economic impact of the CPRS in the light of the global economic and financial crisis. The latter included the deferral of the commencement of mandatory scheme obligations to 1 July 2011, introduction of a transitional fixed price in 2011–12 and additional transitional support for emissions-intensive, trade-exposed (EITE) industries. In the first half of 2009, the department also contributed to the development of policy approaches for the exposure draft and legislative package. These included more policy detail on voluntary action, the waste sector and support for EITE entities under the CPRS.

The exposure draft of the CPRS core legislation was released on 10 March 2009. The department received around 160 submissions in response to the exposure draft, and conducted detailed consultation with legal experts, including the Australian Government Solicitor.

The legislative package of six bills was tabled in parliament on 14 May 2009. Additional bills to give effect to the government’s commitments regarding fuel tax and household assistance to offset the impact of the CPRS were developed by the Treasury and the Department of Families, Housing, Community Services and Indigenous Affairs. Policy and legislation was developed in line with best practice regulatory principles, including the development and publication of a regulatory impact statement with the legislative package. Draft regulations outlining how the EITE assistance program will work in detail, including assistance baselines for eight activities, were released for public comment on 19 June 2009.

Public consultation and parliamentary scrutiny were integral parts of all steps leading to and following the tabling of the CPRS legislative package in parliament. A regular convening of roundtables involving business, environment, trade union and other community organisations took place throughout 2008–09, including ministerial roundtables for specific sectors, such as the agricultural industry.

To help inform public debate, supplementary information papers were produced on several topics, including scheme coverage of reforestation, the process for undertaking EITE activity assessments and options for deferred permit payments.

Following the release of the CPRS White Paper, public information sessions about the scheme were held in state capitals in mid-December 2008. An information session for regional Australia, broadcast live around the nation on satellite TV, was held on 26 February 2009. In addition, the department consulted with state and territory officials on the design of the CPRS, through COAG. The department also provided input to four Senate inquiries into elements of the CPRS policy and legislation.

The department had regular contact, including several hundred individual meetings, with affected stakeholders. The development of EITE regulations has involved a highly consultative approach with industry, including multiple workshops and discussions to develop each of the 18 approved activity definitions. The department has also consulted closely with the EITE Expert Advisory Committee, which has provided advice to the Minister for Climate Change and Water on the EITE assessment process.

Work preparing for the establishment of the Australian Climate Change Regulatory Authority increased through the year. Business systems under development include the online Australian National Registry—an administrative facility that will help meet Australia’s international obligations on managing and tracking emissions units and will be a key system underpinning the CPRS. A comprehensive program of business systems development will be required to underpin the commencement of emissions liabilities from 1 July 2011.

A number of elements of the legislation require early action on implementation, including determining the eligibility of reforestation activities to earn credits for carbon sequestered from 1 July 2010, establishing the industry assistance programs to provide early certainty to stakeholders, and finalising auction arrangements. Subject to passage of the enabling legislation, the Australian Climate Change Regulatory Authority will take on the administration of existing greenhouse and energy reporting and renewable energy legislation.

Regulating greenhouse and energy reporting by industry

The Greenhouse and Energy Reporting Office was established on 1 July 2008 as a separate division within the department to support the regulatory role of the Greenhouse and Energy Data Officer (GEDO) created by the National Greenhouse and Energy Reporting Act 2007 (NGER Act). Mr David Rossiter was appointed as the GEDO, effective from 1 July 2008.

The objectives of the NGER Act are to underpin the introduction of the CPRS; inform government policy development and the Australian public; meet Australia’s international reporting obligations; assist Australian Government and state and territory government programs and activities; and minimise duplicative reporting requirements in the states and territories.

In 2008–09, the department continued to develop the national greenhouse and energy reporting (NGER) legislative framework through amendments to the NGER Act and regulations to enable the GEDO to publish additional information reported by registered corporations. The GEDO also implemented a number of administrative changes to better reflect the policy intent of the NGER System.

The department amended the National Greenhouse and Energy Reporting (Measurement) Determination 2008 to specify the methods for measuring certain sectors, such as the solid waste emissions source, to update particular elements and to clarify issues such as definitions.

Amendments to the NGER Act to strengthen the reporting framework, which underpins the CPRS, were introduced into parliament in March 2008. The amendments followed a comprehensive program of public consultation, which included a series of stakeholder workshops conducted across Australia. Related legislative instruments needed to give effect to the NGER framework will be released for public comment early in 2009–10. The department plans to finalise the framework by the end of 2009.

The department released two publications on its website to help industry stakeholders and the general public better understand the purpose and requirements of the NGER legislative framework. The National Greenhouse and Energy Reporting Guidelines and National Greenhouse and Energy Reporting Technical Guidelines were released in July 2008 and will be updated periodically.

The department undertook an extensive stakeholder outreach program throughout the year to build awareness of the NGER Act and understanding of obligations for affected parties. The program encouraged parties that meet the requirements set out in the legislation to apply for registration well before the 31 August 2009 application deadline for the 2008–09 reporting year, and the department was able to begin processing registrations early.

The department continued to develop the Online System for Comprehensive Activity Reporting (OSCAR) online reporting tool in 2008–09. The tool allows parties registered under the NGER Act to report their greenhouse gas emissions and energy production and consumption electronically before the due date of 31 October 2009. The department also began an OSCAR training program.

The Greenhouse and Energy Reporting Office published the NGER Act Compliance and Enforcement Policy in early June 2009. The policy will provide affected parties, and the broader community, with greater clarity about how the NGER Act will be administered by the GEDO.

In 2008–09, the department made progress in streamlining greenhouse emissions and energy reporting by industry. The department worked closely with other Australian Government and state and territory agencies, through the COAG Experts Group on Streamlining Greenhouse and Energy Reporting, to identify and agree on actions that will reduce the reporting burden on business.

A key milestone in this work was the launch of the National Greenhouse and Energy Reporting Streamlining Protocol, which outlines the agreed national approach for reporting greenhouse and energy data. All governments will use the protocol to revise their existing and future greenhouse and energy programs, and it will inform future development of OSCAR to allow it to be used by other national, state and territory programs.

Preparing Australia’s national greenhouse accounts

The department submitted Australia’s National Inventory Report 2007 under the United Nations Framework Convention on Climate Change (UNFCCC) on 26 May 2009. The report contains national greenhouse gas emissions estimates for the 1990–2007 period and updates the estimates presented in the National Inventory Report 2006 submitted in June 2008. Parties to the convention and its Kyoto Protocol commit to develop, publish and regularly update national emissions inventories of greenhouse gases.

The department compiled the report in accordance with the inventory reporting guidelines agreed by the UNFCCC Conference of Parties, using methods that conform to the international guidelines adopted by the UNFCCC in 1997, 2000 and 2003. The methodologies used to estimate Australia’s inventory have improved over time and will continue to be refined as new information emerges and as international practice evolves.

The department undertook all aspects of activity data coordination, emissions estimation and quality control, and prepared reports and submissions to the UNFCCC on behalf of the Australian Government. In addition to the National Inventory Report 2007, the department published the following set of supporting emissions estimates that together constitute the Australian National Greenhouse Accounts:

• the National Greenhouse Gas Inventory, prepared under the reporting provisions applicable to the Kyoto Protocol
• an overview of the state and territory greenhouse gas inventories
• the National Inventory by Economic Sector, comprising emissions estimates by economic sector.

These documents are available on the department’s website.

Australia’s National Greenhouse Accounts are subject to annual review by international experts. A UNFCCC team of experts reviewed the 2006 accounts in September 2008. The review found that the inventory was of high quality and that it had been generally prepared in line with the following guidances of the Intergovernmental Panel on Climate Change:

• Revised 1996 Guidelines for National Greenhouse Gas Inventories
• Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories
• Good Practice Guidance for Land Use, Land-Use Change and Forestry.

Accounting for and projecting Australia’s carbon pollution

Australia’s National Carbon Accounting System is a world-leading system that accounts for greenhouse gas emissions from land-based sectors. The system uses computer-based modelling and observations to provide a national map of emissions at a sub-hectare scale.

In 2008–09, there were ongoing improvements in the ability of the National Carbon Accounting System to account for nitrous oxide emissions in the land sector. Work to enhance the spatial modelling capabilities of the system also continued, with particular focus on mapping new areas of reforestation, managed native forests, changes in the extent of sparse woody vegetation and fire areas.

The National Carbon Accounting System was reviewed as part of the Kyoto Protocol accession procedures, which among other things establish Australia’s assigned emissions amount. The assigned emissions amount is the Kyoto target for 2008–2013 and is based on a 1990 baseline estimate. The National Carbon Accounting System’s baseline for land use change and forestry was accepted through this process. The robustness of the system was recognised by two important awards: the Australian Museum Eureka Prize for Environmental Research and the 2008 CSIRO Partnerships Excellence Award.

Australia’s strategic partnership with the Clinton Climate Initiative, announced in February 2008, will see the Australian system used as a case study for rolling out a global forest carbon monitoring system made up of comparable national systems. This will allow developing countries to incorporate national forest monitoring into their emissions inventory reporting systems, providing a sound basis for verification of reductions in deforestation and forest degradation. Key case study countries are Cambodia, China, Guyana, Indonesia and Tanzania.

A prototype National Carbon Accounting Toolbox (the Toolbox) provides users with free access to develop estimates of emissions and removals of greenhouse gases at the project scale. The department provides ongoing training and support, and the Toolbox is being widely adopted. The government provided funding for further development of the Toolbox ($16.1 million over four years) in its 2009 Budget, which will support the voluntary coverage in the CPRS of forestry on 1 July 2010 and of the agriculture sector in 2011. See the feature on the ‘new web-based National Carbon Accounting Tool’ at the end of this chapter.

Partnering on greenhouse action in regional Australia

The Greenhouse Action in Regional Australia program received $25 million over the 2004–09 period. Since 2004, the program has attracted $36 million in co-investment from industry and research organisations, bringing the total value of the program to $60 million.

During 2008–09, the program worked with industry, research and government partners to trial new and improved agricultural and land management techniques, support carbon sink forest activities, and integrate greenhouse gas management with regional natural resource management. Partnerships with research organisations ensured a national approach and outcomes that industry could adopt.

Several projects advanced research in areas such as nitrous oxide emissions from Australian cropping systems and emissions from forest soils, and potential reduced methane emissions from livestock. The department also invested in new projects to build our understanding of ways that we can reduce greenhouse gas emissions from Australian land systems.

The program came to a successful close in June 2009. Future work will be the responsibility of the Department of Agriculture, Fisheries and Forestry under the Australia’s Farming Future program.

Performance report for Output 1.1

Key performance indicator	2008–09 target	2008–09 result
Design and implementation of an emissions trading scheme.	Legislation for an emissions trading scheme tabled in parliament. Medium-term emissions trajectory developed and announced.	Carbon Pollution Reduction Scheme (CPRS) legislative package tabled in parliament on 14 May 2009, culminating a process of policy and legislative development that saw the release of the CPRS Green Paper in July 2008, the CPRS White Paper in December 2008, and the exposure draft of the legislation in March 2009. The first three years of the indicative national emissions trajectory announced in the CPRS White Paper in December 2008. Announcement in May 2009 of an extended target range for emissions reductions by 2020. Measures announced in May 2004 to assist businesses in the context of the global financial and economic crisis. Work to establish the Australian Climate Change Regulatory Authority developed and matured. Comprehensive stakeholder engagement conducted after the green paper and white paper were released.
Nationally consistent framework for streamlined greenhouse emissions and energy reporting by industry.	Framework for the national greenhouse and energy reporting system in place and fully operational. Streamlining approach agreed through the Council of Australian Governments (COAG).	Continued development of the mandatory National Greenhouse and Energy Reporting (NGER) framework through legislative amendment, regulations and a measurement determination, all of which were informed by extensive stakeholder consultation. Publication of the National Greenhouse and Energy Reporting Guidelines and National Greenhouse and Energy Reporting Technical Guidelines to aid stakeholder understanding of the legislative framework and stakeholders’ obligations. Implementation of a comprehensive stakeholder outreach program to build awareness of the NGER legislation and an understanding of the obligations for affected parties. Publication of the NGER compliance and enforcement policy on the department’s website to provide stakeholders with clarity about the regulatory approach during the early stages of the reporting regime. Continued development of the Online System for Comprehensive Activity Reporting (OSCAR) to enable parties registered under the NGER Act to meet reporting requirements by the submission deadline. Continued national rollout of OSCAR training for existing and new users. Agreement reached by COAG on a national approach for streamlining greenhouse and energy reporting outlined in the National Greenhouse and Energy Reporting Streamlining Protocol. The protocol will be used by governments to streamline existing and future greenhouse and energy programs.
Work effectively with the states and territories to achieve a nationally consistent set of climate change measures to support the emissions trading scheme.	Agreement to framework and timetable to review and streamline all jurisdictions’ climate change mitigation measures through COAG.	Policy and secretariat support provided for the COAG Working Group on Climate Change and Water—the working group met six times in 2008–09, focusing on the CPRS and complementary measures; design of the Renewable Energy Target (RET); energy efficiency; adaptation; streamlining of greenhouse and energy reporting; and the sustainable use of water. COAG endorsement of a set of principles for jurisdictions to review and streamline existing climate change mitigation measures; agreement on the design of the expanded RET; and agreement to develop a comprehensive national strategy for energy efficiency.
Implementation of the expanded Renewable Energy Target (RET).	Parameters for the national RET agreed through COAG. Legislation for the expanded RET tabled in parliament.	COAG agreement to the design of the RET scheme on 30 April 2009, following extensive community and stakeholder consultation. Tabling of legislation for the RET scheme in June 2009.
Accurate accounting and projection of Australia’s greenhouse gas emissions level consistent with requirements under the United Nations Framework Convention on Climate Change (UNFCCC).	Release of the National Greenhouse Gas Inventory for 2006. Projected abatement from domestic climate change measures estimated.	National Greenhouse Accounts series published on the department’s website and submitted to the UNFCCC. Findings of the UNFCCC expert review of the 2006 accounts in September 2008, which found that the inventory was of high quality and generally prepared in line with the Intergovernmental Panel on Climate Change’s Revised 1996 Guidelines for National Greenhouse Gas Inventories, Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories and Good Practice Guidance for Land Use, Land-Use Change and Forestry. Findings of the UNFCCC review of Australia’s projections, as part of its review of Australia’s Fourth National Communication, in January 2009, which found that Australia’s projections approach is consistent with the UNFCCC reporting guidelines, and provides clear and systematic accounts of the differences between successive projections updates. Advice provided on projected abatement from domestic climate change measures, including the Energy Efficient Homes Package and elements of the National Strategy on Energy Efficiency. Emissions projections prepared for release in 2009–10.