Are you due to submit your first offsets report but don’t know where to start?
This handy guide will show you how to prepare yourself and your project.
For those unfamiliar with what an offsets report is, we’ve developed a quick ‘101’ article here to get you started.
In short, your initial offsets report is a document accompanied by a range of supporting evidence, which outlines how you have demonstrated compliance with your chosen ACCU Scheme methodology. For area-based methods (such as Environmental Plantings, Plantation Forestry or Soil Carbon), this will generally include:
- Geospatial mapping that indicates where your project has taken place. This may include location of Carbon Estimation Areas, Exclusion Zones and FullCAM model points. This must be generated consistent with the requirements of the CFI Mapping guidelines.
- If you are using a FullCAM based method, copies of your FullCAM output and .plo files
- Details around the inputs and equations used to calculate your abatement.
- Explanatory data to support how you may have stratified your Carbon Estimation Areas.
- Management and monitoring records.
There’s a considerable amount of work that goes into collating this information, so it’s important that you start preparing well in advance.
Timing will range from project to project, however we’ve outlined an indicative scenario that can be applied to an Environmental Plantings or Plantation Forestry project below to assist you in developing guardrails. As a hypothetical scenario this isn’t applicable to every project, but it will give you sufficient insight to help develop a plan for your project.
So – you’re a few years into your carbon project, you’ve successfully implemented your project activity, and now you’re wanting to start receiving Australian Carbon Credit Units (ACCUs). To facilitate this, you will need to submit your initial offsets report to the Clean Energy Regulator (Regulator or CER) for approval.
First of all…
Know your projects’ deadlines and remember:
- Offsets reports need to be submitted for every reporting period of your projects crediting period.
- A reporting period can generally be as short as 6 months, or as long as 5 years.
- A reporting period commences from the start of the projects crediting period – or will immediately follow the conclusion of the previous reporting period. You must submit the offsets report within 6 months of the end of the corresponding reporting period.
Work backwards, and make sure you allow lots of time to collate your reporting documents. As a loose rule of thumb, if you have solid records, you could assume it will take approximately 8 months from starting the process to submitting to the Regulator. Make sure you factor your own ‘busy’ periods into this – don’t schedule high-intensity offset report actions at the same time as a harvest event, or end-of-financial year.
8 months out
Collating your offsets report will generally require third-parties – so aside from checking your own calendar, its sensible to lock in third-parties as soon as possible. This might include:
- Foresters (for a site inspection),
- GIS experts (for project mapping),
- Carbon service providers (for mapping, FullCAM modelling, production of the report and supporting documents)
- Independent consultants (for FMP review and sign off if required – Plantation Forestry projects only)
- An auditor (this may not be necessary if you are doing an Alternative Assurance project).
Hot tip: We’re a little biased, but we highly recommend that you engage a skilled carbon service provider to generate your report. These are highly technical documents, and unless you are confident in your own mapping, FullCAM and report-writing abilities (or can outsource ‘weak points’), it will likely save you a lot of pain by appointing a service provider from the outset. We’ve got information on navigating Carbon Project Agreements here – or get in touch with us here.
7 months out
At this point you should start collating records. If you have kept good records most of these will be easy to source, but by preparing this far out, you should have enough time to identify any gaps.
Hot tip: If you have engaged a carbon service provider, they should be able to give you a detailed list of required documents. An experienced service provider may also be able to list the evidence an auditor will want to see – as they often have requests over and above what the method requires.
6 months out
With 6 months to go, you or your service provider should be able to start drafting the offsets report. As you have not conducted final monitoring checks you will not be able to finalize mapping (and consequently FullCAM modeling and carbon abatement calculations), but a first pass will assist in identifying any gaps.
5 months out
This is a sensible time to coordinate your monitoring event (i.e. site inspection) for this reporting period. At this stage, you are looking to conduct an assessment to ensure that your planting areas are compliant at the end of your reporting period. This may involve using GIS to remove ‘failed’ areas.
Hot tip: Remember you need to submit your offsets report to the Regulator within 6 months of the end of your reporting period. Conducting your final monitoring check now will enable you to set the end of your reporting period – and with 5 months to go, you’ve got a month up your sleeve.
4 months out
With your monitoring event data in hand, you should have everything you need to get stuck into your report. You can stratify your carbon estimation areas, identify your model points, run FullCAM simulations, calculate your abatement, and make sure you have all your compliance documents ready.
Hot Tip: At this stage we also recommend you liaise closely with your appointed auditor. Let them know when you expect the report to be ready for their assessment and seek to coordinate a site visit.
Bonus Hot Tip: This month is a big one. Did we mention we recommend you engage a skilled carbon service provider?
3 months out
Your report and all documents should be finished – but you’re not done yet. All documents can be sent to the auditor for an initial review, and it’s likely that they may request further information from you. This month you can also expect to have the auditor conduct a site visit to validate that what you have included in your report matches what has happened on-ground.
2 months out
You’re almost there. At this point your report is probably with your auditor for their final review. Again – expect a few requests for additional supporting info, and endeavor to be prompt in your response to ensure you don’t hold them up.
1 month out
The end is clearly in sight! Your auditor should be ready to provide you with their final audit assurance report. If all has been successful, you will have some paperwork to complete to finalize their engagement – and then you can submit the offsets and audit assurance reports to the Clean Energy Regulator through the Online Service portal.
It might seem like a lot of work, , but this process is nothing to be afraid of – particularly if you have strong records, and you plan your time effectively.
Next steps
From here, the Regulator will have 90 days to complete their assessment of your report, and issue credits.
Beyond this, you should continue monitoring the success of your property, implementing the requirements of your permanence and/or forest management plan, and keep good records in preparation for your next report.
Wanting to learn more about the offset report process? Get in touch with our friendly team for a non-obligation chat, by contacting us here.
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