Greenhouse Gas Reduction Scheme

The NSW Greenhouse Gas Reduction Scheme (GGAS) commenced on 1 January 2003. It is one of the first mandatory greenhouse gas emissions trading schemes in the world. GGAS aims to reduce greenhouse gas emissions associated with the production and use of electricity. It achieves this by using project-based activities to offset the production of greenhouse gas emissions.

GGAS establishes annual statewide greenhouse gas reduction targets, and then requires individual electricity retailers and certain other parties who buy or sell electricity in NSW to meet mandatory benchmarks based on the size of their share of the electricity market. If these parties, known as benchmark participants, fail to meet their benchmarks, then a penalty is assigned. Monitoring the performance of benchmark participants is undertaken by the Independent Pricing and Regulatory Tribunal of NSW (IPART) in its role as Compliance Regulator.

Assessing abatement projects, accrediting parties to undertake eligible projects and then create certificates, and monitoring compliance with GGAS is the responsibility of the Scheme Administrator, currently IPART.

The Scheme Administrator also manages the GGAS/ESS Registry which records the registration and transfer of certificates created from abatement projects.

The ESS is modelled on the end-use energy efficiency parts of the Demand Side Abatement (DSA) component of GGAS. As a result, ESS eligible activities currently accredited under the GGAS DSA Rule will be able to transition into the ESS from 1 July 2009.

Apart from changes to the DSA Rule, all other aspects of GGAS will continue to function from 1 July 2009. This means NGAC creation from the Carbon Sequestration Rule, Generation Rule and Large User Rule will continue as normal.

To visit the Greenhouse Gas Reduction Scheme website click here.