23Simplified outline of this Division

23  Simplified outline of this Division

This Division is relevant to a savanna sequestration project if it contains a project area that was previously part of either a project covered by a savanna emissions avoidance determination or another project covered by this determination. Such a project area is a transferring project area.

There are several ways of moving a transferring project area from its original project to another project that is covered by this determination.

Moving project areas between savanna sequestration projects

A project area may be moved from one savanna sequestration project to another savanna sequestration project in accordance with section 23 of the CFI Rule. The project’s crediting period would be adjusted in accordance with section 53 of the CFI Rule.

Moving project areas from emissions avoidance project to sequestration project

If the original project is covered by a savanna emissions avoidance determination, there are several options.

Before commencement of the Carbon Credits (Carbon Farming Initiative) Amendment Act 2018:

● One option is to apply to move all of the original project’s project areas onto a project covered by this determination, in accordance with section 30A of the CFI Rule. This would involve seeking revocation of the original project’s section 27 declaration.

● Another option is to apply to move only some of the original project’s project areas onto a project covered by this determination, in accordance with section 30B of the CFI Rule. This would involve seeking a variation of the original project’s section 27 declaration to remove the transferring project area or areas.

In either case, a new savanna sequestration project would need to be declared as an eligible offsets project. The new project would have a new crediting period, and would be a restarting transferring project.

After commencement of the Carbon Credits (Carbon Farming Initiative) Amendment Act 2018:

● A further option would be to request the Regulator to approve the application of this determination to the original project, under section 130 of the Act. The project would retain the same project area or areas.

In that case, the project’s existing crediting period would continue. The project would be a continuing transferring project.

It is not possible to transfer a project area from a project covered by a savanna emissions avoidance determination to a savanna sequestration project under section 23 of the CFI Rule.

Projects that contain transferring project areas

Some provisions of this determination apply special rules to projects that contain transferring project areas, and apply differently to restarting transferring projects and continuing transferring projects. These provisions are principally set out in this Division.