38Conversion of assigned amount units or removal units

38 Conversion of assigned amount units or removal units

(1) The conditions that must be satisfied for paragraph 38(1)(e) of the Act are: (a) the unit must have been issued in relation to a joint implementation project that: (i) is approved by the National Authority; and (ii) is conducted in accordance with any requirements applying to joint implementation projects under the Kyoto rules; and (b) the person must provide the Regulator with the ITL project ID for the project; and (c) for the conversion of an assigned amount unit that was obtained as a result of a sequestration offsets project: (i) a removal unit must have been issued to the Commonwealth for abatement that happened during the first commitment period; and (ii) the removal unit must be available for exchange in the Commonwealth holding account. (2) The steps that the Regulator must take for subsection 38(2) of the Act are: (a) for the conversion of an assigned amount unit that was obtained as a result of an emissions avoidance offsets project—the steps required by the Kyoto rules; or (b) for the conversion of an assigned amount unit that was obtained as a result of a sequestration offsets project: (i) remove the entry for the assigned amount unit from the person’s Registry account; and (ii) convert a removal unit that is available for exchange in the Commonwealth holding account to an emission reduction unit, in accordance with the Kyoto rules; and (iii) remove the entry for the emission reduction unit from the Commonwealth holding account; and (iv) make an entry for the emission reduction unit in the person’s Registry account; or (c) for the conversion of a removal unit—the steps required by the Kyoto rules. (3) In this regulation:

emissions avoidance offsets project has the meaning given by section 53 of the Carbon Farming Act.

ITL project ID, for a joint implementation project, means the project identifier used by the international transaction log for the project.

joint implementation project means a project that is treated as a joint implementation project for the purposes of the relevant provisions of the Kyoto rules.

National Authority means the National Authority for the clean development mechanism (CDM) and joint implementation (JI), established in accordance with the Kyoto Protocol.

sequestration offsets project has the meaning given by section 54 of the Carbon Farming Act.