34Emissions reduction contribution for trade‑exposed baseline‑adjusted facility

34 Emissions reduction contribution for trade‑exposed baseline‑adjusted facility

(1) If a facility is a trade‑exposed baseline‑adjusted facility in a financial year, the emissions reduction contribution for the facility for the financial year is the number worked out using the following formula: Start formula ERC subscript y minus DR plus RCI times open bracket DR minus DR subscript m close bracket end formula where: ERCy is: (a) if the table in section 31 does not specify a default emissions reduction contribution for the previous financial year—1; (b) otherwise—the emissions reduction contribution for the facility for the previous financial year.

DR is the default decline rate for the financial year.

RCI is the ratio of cost impacts for the facility for the financial year.

DRm (known as the minimum decline rate) is:

(a) if the facility is a manufacturing facility—0.01; or
(b) otherwise—0.02.

(2) The number worked out using the formula in subsection (1) is to be rounded to 5 decimal places (rounding up if the sixth decimal place is 5 or more).