Sch 2Sequestration—calculation of adjusted contribution to net abatement amount for a calendar year

Schedule 2—Sequestration—calculation of adjusted contribution to net abatement amount for a calendar year

If the project proponent elects to calculate the adjusted contribution to the net abatement amount for the project area from sequestration of carbon in dead organic matter for calendar year y of the reporting period, ASeq,adj­,y in equation 1, without using SavBAT 3, the amount is calculated as follows.

First, the contribution to the net abatement amount from sequestration in dead organic matter in the project area for the calendar year, ASeq, is calculated. The amount of carbon sequestered in dead organic matter will generally reach a reasonably stable equilibrium level over time. During the baseline period, the equilibrium level will be relatively low. As a result of undertaking the project, a higher equilibrium level is expected to be reached over time. The determination calculates the equilibrium baseline level, and uses an averaging process to arrive at a value for the project equilibrium level. The amount ASeq is based on the difference between these equilibrium levels, spreading the credits across the years of the crediting period (25 years unless it is reduced for a transferring project under section 28 of this determination).

The equilibrium levels themselves are calculated on the basis of the vegetation fuel type map, factors taken from the National Inventory Report, and various mean fire frequencies for the project area (which were calculated in Schedule 1). When calculating the amount ASeq, only the fuel size classes ‘coarse fuel’ and ‘heavy fuel’ are taken into account.

Then, from the amount ASeq, the adjusted contribution to the net abatement amount, ASeq,adj, is calculated. This calculation involves decreasing ASeq by any negative abatement that was carried over from the previous calendar year. The amount so calculated is further decreased by an amount that is applied in lieu of the risk of reversal buffer number and the permanence period discount number that ordinarily apply when the unit entitlement for a sequestration offsets project is calculated under section 16 of the Act. For projects that are covered by this determination, these numbers are equal to zero as a result of the CFI Rule. To compensate for this, the contribution to the net abatement amount from sequestration is adjusted using a sequestration buffer that corresponds to the risk of reversal buffer and the permanence period discount number that ordinarily apply to sequestration offsets projects under the Act. (The contribution to the net abatement amount from emissions avoidance is not adjusted.)

Values relating to the baseline period are re‑calculated each year, and will potentially change from year to year. Changes to these values will arise, for example, if documents that are referred to as in force from time to time are modified, if the vegetation fuel type map is revised, or if project areas are divided.

2  Calculation of adjusted contribution to net abatement amount from sequestration of carbon in dead organic matter for a calendar year, ASeq­,adj

  For paragraph (b) of the definition of ASeq,adj,y in subsection 34(1) of this determination, the adjusted contribution to the net abatement amount from sequestration for a particular project area and for a particular calendar year, ASeq,adj, in tonnes CO2‑e, is calculated by:

 (a) calculating the previous year’s carry‑over amount for the project area, CSeq,Prev, in tonnes CO2‑e, in accordance with section 3 of this Schedule; and

 (b) calculating the contribution to the net abatement amount from sequestration for the project area for the calendar year, ASeq, in tonnes CO2‑e, in accordance with section 4 of this Schedule; and

 (c) determining the sequestration buffer, BSeq, in accordance with section 5 of this Schedule; and

 (d) determining which set of conditions set out in the table below is satisfied in relation to the project area for the calendar year; and

 (e) calculating, in accordance with the corresponding row of the table:

 (i) the adjusted contribution to the net abatement amount from sequestration for the project area and for the calendar year, ASeq,adj, in tonnes CO2‑e; and

 (ii) the current year’s carry‑over amount for the project area, CSeq,Curr, in tonnes CO2-e.

• Calculation of adjusted contribution to net abatement amount from sequestration
• Item Conditions ASeq,adj CSeq,Curr
• 1 ASeq + CSeq,Prev  0 (1 – BSeq)  (ASeq + CSeq,Prev) 0
• 2 ASeq + CSeq,Prev < 0 0 ASeq + CSeq,Prev

Note 1: Division 3 of this Schedule sets out adjustments to these calculations, which apply:

 if a project area spans both rainfall zones (see section 8 of this Schedule); and

 if, between the start of the crediting period and the end of the calendar year, there has been no relevant fire activity in the project area (see section 9 of this Schedule); and

 if a project area is divided into 2 or more subdivided project areas (see section 10 of this Schedule).

Note 2: If, during a reporting period, the vegetation fuel type map is revised in accordance with section 19 of this determination, the version of the map as in force at the end of the reporting period is used for calculations for all years of the reporting period (including for the calculation of amounts that relate to the baseline period). See subsection 10(1) of this determination. However, a previous year’s carry‑over amount, and a previous year’s value for CSeq,Prev, are not revised on the basis of the revised map.

3  The previous year’s carry‑over amount, CSeq,Prev

Note: In some years, the contribution to the net abatement amount from sequestration in dead organic matter, ASeq, might be a negative number, for example, if there has been a reversal of sequestration in the relevant year. Such negative amounts do not detract from the adjusted contribution to the net abatement amount, ASeq,adj, nor from the net abatement amount A. However, they are carried over into the following year’s calculations as the previous year’s carry‑over amount, CSeq,Prev, and detract from any positive sequestration that might occur in future years. The previous year’s carry‑over amount will either be zero or a negative number.

 (1) For paragraph 2(a) of this Schedule, and subject to section 10 of this Schedule (which deals with subdivided project areas), the previous year’s carry‑over amount for the project area, CSeq,Prev, in tonnes CO2‑e, is:

 (a) if, for the previous calendar year, the current year’s carry‑over amount (CSeq,Curr) was calculated for the project area in accordance with this determination—equal to the amount so calculated; and

 (2) For paragraph (1)(a), if the project was reported on for that year, the relevant value is the value reported in the offsets report.

Note: Paragraph (1)(a) is modified in some cases if the requirement in lieu of the newness requirement set out in paragraph 21(2)(c) of this determination was met. See subparagraph 21(3)(d)(ii) of this determination.

4  The contribution to the net abatement amount from sequestration for a calendar year, ASeq

 (1) For paragraph 2(b) of this Schedule, the contribution to the net abatement amount from sequestration for a project area for a calendar year, ASeq, in tonnes CO2‑e, is given by the following equation:

| View image in the official source | equation 14 |

CSeq is the amount, in tonnes CO2­­‑e, calculated in accordance with section 6 of this Schedule (equation 15).

Note: See section 9 of this Schedule for an adjustment to this definition if all of the fire frequencies calculated as described in paragraph 9(2)(a) of Schedule 1 are equal to zero.

CSeq,Prev is, subject to section 10 of this Schedule (which deals with subdivided project areas):

 (a) if, for the previous calendar year, the amount CSeq was calculated for the project area in accordance with this determination, or deemed in accordance with subsection 9(3) of this Schedule—equal to the amount so calculated or deemed; and

Note 1: If the project area is a transferring area and the former determination is a savanna emissions avoidance determination, CSeq,Prev is equal to zero for the first calendar year under this determination.

Note 2: Paragraph (b) of the definition of CSeq,Prev is modified in some cases if the requirement in lieu of the newness requirement set out in paragraph 21(2)(c) of this determination was met. See subparagraph 21(3)(d)(iii) of this determination.

 (2) For paragraph (b) of the definition of CSeq,Prev, if the project was reported on for that year, the relevant value is the value reported in the offsets report.

5  The sequestration buffer

  For paragraph 2(c) of this Schedule, BSeq is equal to:

 (a) if the project is a 25‑year permanence period project—0.25; and

 (b) if the project is a 100‑year permanence period project—0.05.

Note: The sequestration buffer, BSeq, is a buffer that is applied in lieu of the risk of reversal buffer number and the permanence period discount number that would otherwise apply in relation to a sequestration offsets project under subsection 16(2) of the Act. This buffer accounts for the risk that carbon sequestered as a result of the project does not remain permanently in the landscape.

6  Calculation of CSeq

 (1) For section 4 of this Schedule, CSeq is the portion of the difference between the project and baseline equilibrium fuel loads for a project area resulting from undertaking the project that is taken to have been achieved by the end of a particular calendar year, on the assumption that the equilibrium fuel loads increase or decrease linearly over the crediting period, and is given by the following equation:

| View image in the official source | equation 15 |

LSeq is equal to the smaller of:

 (a) the length, in years, of the period between:

 (i) the start of the year in which a savanna sequestration project first commenced in the project area; and

 (ii) the end of the calendar year; and

 (b) the amount LCP,Seq.

L­CP,Seq is equal to:

 (a) for a continuing transferring project—the difference, in years, between:

 (i) the length of the crediting period; and

 (ii) the length of the period for which the project was reported on under the former determination or any other methodology determination;

  rounded down to the nearest whole number of calendar years; and

 (b) otherwise—the length of the crediting period, in years.

Note: There will ordinarily be 25 years in the crediting period. For the crediting period of certain projects that include a transferring project area, see section 28 of this determination.

View image in the official source is the project equilibrium fuel load of carbon that is sequestered in dead organic matter for the project area, as calculated for the calendar year in accordance with section 7 of this Schedule, in tonnes CO2‑e.

View image in the official source is the baseline equilibrium fuel load of carbon that is sequestered in dead organic matter for the project area, as calculated for the calendar year in accordance with section 7 of this Schedule, in tonnes CO2‑e.

 (2) For paragraph (a) of the definition of LCP,Seq in subsection (1), if the project to which the transferring project area previously belonged had 2 crediting periods as a result of subsection 70(2) of the Act, disregard the first crediting period.

7  Equilibrium fuel loads

 (1) The following amounts:

 (a) View image in the official source for subsection 6(1) of this Schedule;

 (b) View image in the official source for subsection 6(1) of this Schedule;

 (c) the 10‑year project equilibrium fuel load for a particular calendar year for subparagraph 36(3)(d)(ii) of this determination;

  are given by the amount View image in the official source calculated in accordance with the following equation:

| View image in the official source | equation 16 |

f is a fuel size class, and takes on the values of coarse fuel and heavy fuel.

v is a vegetation fuel type on the vegetation fuel type map for the project area.

View image in the official source is:

 (a) when calculating View image in the official source—the baseline equilibrium amounts of biomass in the dead organic matter, View image in the official source, for the project area calculated in accordance with equation 17 over the relevant calculation period given by paragraph (a) of the definition of that term in section 5, in tonnes of biomass per hectare; and

 (b) when calculating View image in the official source—the project equilibrium amount of biomass in the dead organic matter, View image in the official source, for the project area calculated in accordance with equation 17 over the relevant calculation period given by paragraph (b) of the definition of that term in section 5, in tonnes of biomass per hectare; and

 (c) when calculating the 10‑year project equilibrium fuel load—the 10-year project equilibrium amounts of biomass in the dead organic matter, View image in the official source, for the project area calculated in accordance with equation 17 over the relevant calculation period given by paragraph (c) of the definition of that term in section 5, in tonnes of biomass per hectare.

SV,v is the total area covered by vegetation of vegetation fuel type v in the project area, ascertained from the vegetation fuel type map for the project area, in hectares.

CCf,v is the carbon content for fuel of fuel size class f of vegetation fuel type v, in tonnes of carbon per tonne of biomass—from the National Inventory Report.

Note: The factor 44/12 is measured in tonnes CO2‑e per tonne of carbon, and converts the amount in tonnes of carbon into an amount in tonnes of CO2‑e.

 (2) For the definition of View image in the official source in subsection (1), the equation is the following:

| View image in the official source | equation 17 |

Lf,v is the annual rate of accumulation of fuel of fuel size class f that is of vegetation fuel type v, as given by the National Inventory Report, in tonnes of biomass per hectare per year.

Df,v is the proportion of vegetation of fuel of fuel size class f that is of vegetation fuel type v that decomposes each year in a given area, as given by the National Inventory Report, in years–1.

View image in the official source is the mean proportion of fuel of fuel size class f that is of vegetation fuel type v that remains after a fire for the project area and for the relevant calculation period, as calculated using equation 10 (in Schedule 1).

FRIv is the mean fire return interval for vegetation of vegetation fuel type v for the project area and for the relevant calculation period, as calculated using equation 9 (in Schedule 1), in years.

8  Adjustments resulting from project area spanning rainfall zones

  If a single project area has 2 project area parts, ASeq,adj for the project area is instead calculated by:

 (a) calculating a value of ASeq,adj in tonnes CO2‑e in accordance with this Schedule for each project area part as if it were a separate project area; and

9  Adjustments resulting from lack of fire activity

 (1) This section applies if, when calculating View image in the official source for a particular calendar year, for any vegetation fuel type v on the vegetation fuel type map, the sum of the mean fire frequencies FFv,s­ as given by equation 8 (in Schedule 1), over both fire seasons, is equal to zero.

 (2) If the sum is equal to zero for some, but not all, such vegetation fuel types v, for section 7 of this Schedule, disregard each such vegetation fuel type when calculating View image in the official source (but not View image in the official source) for the calendar year.

 (3) If the values as summed are equal to zero for all such vegetation fuel types v, for section 4 of this Schedule, the amount CSeq is taken to be equal to the amount CSeq,Prev for that calendar year.

10  Adjustments resulting from subdivided project areas

Adjustments relating to section 3 of this Schedule—previous year’s carry‑over amount, CSeq,Prev

 (1) If a project area is divided into 2 or more subdivided project areas, then CSeq,Prev for each subdivided project area immediately after the subdivision takes effect is equal to the amount CSeq,Prev,Subdiv given by the following equation:

| View image in the official source | equation 18 |

View image in the official source is the baseline equilibrium amount of carbon sequestered in dead organic matter in the subdivided project area, in tonnes CO2-e, and is calculated in accordance with section 7 of this Schedule over the baseline period and for the subdivided project area.

View image in the official source is the baseline equilibrium amount of carbon sequestered in dead organic matter in the original project area, in tonnes CO2-e, and is calculated in accordance with section 7 of this Schedule over the baseline period and for the original project area.

CSeq,Prev,Orig is the previous year’s carry‑over amount for the original project area, CSeq,Prev, as calculated in accordance with subsection 3(1) of this Schedule.

Adjustments relation to section 4 of this Schedule—CSeq,Prev in equation 14

 (2) If a project area is divided into 2 or more subdivided project areas, then CSeq,Prev for each subdivided project area immediately after the subdivision takes effect is equal to the amount CSeq,Prev,Subdiv given by the following equation:

| View image in the official source | equation 19 |

View image in the official source has the same value as in subsection (1).

View image in the official source has the same value as in subsection (1).

CSeq,Prev,Orig is the portion of the increase in equilibrium fuel load for the original project area resulting from undertaking the project that is taken to have been achieved by the end of the year before the subdivision, CSeq,Prev, as calculated in accordance with the definition of that term in subsection 4(1) of this Schedule.

11  Attribution of cumulative net abatement amount to a project area being removed from the project

 (1) For subsection 36(5) of this determination, for the removed project area, the portion of the cumulative net abatement amount, ACumulative, is given by the following equation:

| View image in the official source | equation 20 |

CSeq,Cumulative is:

 (a) for a project area other than a subdivided project area—equal to:

 (i) if a positive value of CSeq has been reported for the project area in a previous offsets report—the largest such value that has been reported; and

 (ii) otherwise—zero; and

 (b) for a subdivided project area—whichever of the following is larger:

 (i) the largest positive value of CSeq (if any) that has been reported for that subdivided project area in a previous offsets report;

 (ii) the largest amount CSeq,Cumulative,Subdiv for the subdivided project area as calculated in accordance with equation 21 on the basis of all earlier project areas.

Example: For paragraph (b), the project area might have been subdivided in accordance with subsection 14(3) of this determination.

BSeq is the sequestration buffer, determined in accordance with section 5 of this Schedule.

 (2) For subparagraph (b)(ii) of the definition of CSeq,Cumulative in subsection (1), and for a particular earlier project area, equation 21 is as follows:

| View image in the official source | equation 21 |

View image in the official source has the same value as in subsection 10(1) of this Schedule.

View image in the official source is the baseline equilibrium amount of carbon sequestered in dead organic matter in the earlier project area, in tonnes CO2-e, and is calculated in accordance with section 7 of this Schedule over the baseline period and for the earlier project area.

C­Seq,Earlier is equal to:

 (a) if a positive value of CSeq has been reported for the earlier project area in a previous offsets report—the largest such value that has been reported; and

 (b) otherwise—zero.

Meaning of earlier project area

 (3) In this section:

earlier project area, in relation to a subdivided project area, means:

 (a) the original project area that was divided to produce the subdivided project area; and

 (b) any project area that was previously divided, however many times, to produce the original project area.