Climate Change

Climate Change Challenges for the Mining Industry

What's The Driving force?

• Climate Change Real or Not? Is not the issue
• Irrelevant the Government believes it's real and legislation currently exists which will drive needs for services within the sector
• Two key pieces of Federal legislation:
   
  • National Greenhouse and Energy Reporting Act 2007 imposes mandatory reporting requirements; and
  • Carbon Pollution Reduction Scheme is about to be introduced which imposes a real cost on carbon emissions (1st July 2011)
    
    

National Greenhouse and Energy Reporting Act 2007 (the Act)

Thresholds and due dates for the National Greenhouse and Energy Reporting System:

A threshold is met if greenhouse gases are emitted, energy is consumed or energy is produced at or above the given levels. Corporate group thresholds apply to the aggregate of every facility under the operational control of members of a controlling corporation's group. Facility thresholds apply to each facility under the operational control of a member of a controlling corporation's group. All thresholds apply pro rata for the number of days in a financial year that a facility is under the operational control of a group member.

Is your Organisation ready?

• For facilities and/or corporations which fall within the National Greenhouse Gas and Energy Reporting Acts mandatory reporting thresholds for the 2008 - 2009 year
• Registration of facilities and corporations by the 31st August 2009
• Online reporting by 31st October 2009

Penalties

Penalties of up to $220,000 plus daily penalties of up to $11,000 for continued non-compliance can be applied to corporations under the NGER Act. Section 47 of the Act provides that the CEO of a non-compliant corporation may also be ordered to pay a penalty up to an equal amount of that imposed upon their company for the same contravention.

AARC's approach to managing obligations

• Turning Climate Change legislation into a business opportunity for our clients through Carbon Pollution Reductions =

- Decreased production costs $
- Increased profits $

• Same framework has been successfully applied to Quality Management, Safety Health and Environmental Management to harness benefits from continuous improvement

AARC's Climate Change Management Services

AARC are ready to assist you in meeting your obligations. We have developed climate change service offerings to assist you at each stage of dealing with the impact of climate change on your operations.

• Initial assessment of energy consumption and greenhouse gas emissions:
  This initial assessment is undertaken at a facility level to define key emission sources and aggregate energy consumption which may be attributable to the controlling entity for the facility under the NGER legislation. The service is designed to provide a quick initial assessment to determine if a facility or its controlling corporation is likely to meet one of the greenhouse gas emissions, energy production, or energy consumption thresholds for reporting for the 2008 - 2009 year. For those facilities which this initial assessment flags as likely falling within the mandatory reporting thresholds registrations, detailed measurement, assessment and reporting services are also available.
  
  
• Registration Services:
  For those facilities which have met or are expected to meet one of the greenhouse gas emissions, energy production or energy consumption thresholds for reporting. AARC are able to provide a registration service of the facilities as a reporting entity. This service assists corporations in the preparation of their registration application to register under the NGER Act. Corporations that are registered for reporting under NGER Act will be set up to submit data using as Online System for Comprehensive Activity Reporting (OSCAR).
  
  
• Detailed measurement and assessment (for Scope 1 and Scope 2 emissions):
  Assessment is undertaken in accordance with NGER (Measurement) Determination 2008. The detailed assessment of a facility and measurement of emissions takes place in two parts.
  
  An audit of the facility is undertaken to identify all greenhouse gas emissions sources, energy consumers and energy production from within the facility. Following which an assessment of the most appropriate method for measurement. Where necessary measurements will be taken and documentation reviewed to document net emissions and aggregate energy consumption either measured or estimated for each source.
  
  Finally through our alliance partners we are able to provide a review of the business structure under which your facility operates for reporting purposes to determine which reporting entities, greenhouse gas emissions and or energy consumption from the facility must be attributed to.
  
  
• Reporting services:
  Our reporting services are designed to fulfill your corporation's annual reporting obligations under the NGER legislation. The services encompass the validation of data on a facility basis the on reporting preparation of data for submittal on the Online System for Comprehensive Activity Reporting (OSCAR) and if required the entry and submittal of that data on behalf of the corporation. This service is only available to those clients who utilised our detailed measurement and assessment services.
  
  
• Green House Gas management plan:
  In addition to our legislative compliance assessment, registration, measurement and reporting services we also offer our clients assistance with the development of management tools to reduce the impact of green house gas emissions on the organisation through the development of a detailed Green House Gas Management Plan. This involved the development of management strategies and procedures to assistance in management on key climate change issues on the operations for which they are responsible:
  
  
  • Structuring of reporting enmities
  • Benchmarking of the facility energy efficiency and emissions
  • Energy efficiency and green house gas emission reduction initiatives
  • Implementation of advanced measurement strategies to reduce green house gas emissions liabilities
  • Availability and application of alternative energies supplies available to the facility
  • Offset of emissions through investment in external carbon reduction programs
  • Application of industry innovation to reduce liabilities
  • Emissions trading scheme impacts and strategies within the Cap and Trade carbon constrained environment
    
    
• Comprehensive Green house gas management service:
  Brings together all of our services to provide a comprehensive service to provide management with all the tools necessary to manage your facilities or corporations obligations in regards to the challenges of the both the new legislative environment and the looming carbon constrained economy. This comprehensive service package includes:
  
  
  • Initial assessment of energy consumption and greenhouse gas emissions
  • Registration services
  • Annual detailed measurement and assessment (for Scope 1 and Scope 2 emissions)
  • Annual reporting services
  • Initial development and annual review of your Green House Gas Management Plan
  • External audit services to validate the management programs which you have in place
    
    

AARC are happy to work in partnership with your organisation to ensure effective management of these complex issues and offer a success based fee structure to ensure that fees are based on our performance, as measured by improved operational performance of your facility, and based on reductions achieved in energy consumption and carbon emissions liabilities.