Guarantee of Origin scheme

 

The proposed Guarantee of Origin (GO) scheme would:

  • provide a mechanism to track and verify emissions associated with hydrogen and other products made in Australia
  • provide an enduring mechanism for renewable electricity certification which could support a variety of renewable energy claims.

Participation in the proposed GO scheme would be voluntary. The scheme would help unlock economic opportunities for Australian industry to meet growing domestic and international demand for verified renewable electricity and low emissions products.

The government recognises the strong voluntary action being taken by corporations, individuals and governments to invest in clean energy and reduce emissions. The proposed GO scheme would support this action by providing a robust framework to facilitate green markets.

The 2022-23 Budget provided the department with $2.2 million to develop and consult on design and draft legislation for a Guarantee of Origin (GO) scheme.

Product-based emissions accounting framework

The Guarantee of Origin scheme is designed to be a product-based emissions accounting framework that measures and tracks emissions and associated information across the value chain.

It will set the foundation for creation of and participation in new markets by providing a streamlined process for reporting emissions information based on robust internationally aligned emissions accounting methodologies.

The scheme would enable producers to make credible low emissions claims about their products, unlocking opportunities for trade, decarbonisation and investment.

The proposed scheme has been developed in close collaboration with our international energy partners to ensure it meets their needs as importers of Australia’s clean energy. The design draws on our work with the International Partnership on Hydrogen and Fuel Cells in the Economy (IPHE). Through the IPHE we are working with other countries on methods to determine the carbon emissions from hydrogen production.

Renewable Electricity Certification

The proposed renewable electricity certificate mechanism could be used to support a variety of voluntary renewable electricity claims, such as for hydrogen GO certification or to support corporate renewable energy or emissions reduction claims.

A renewable electricity guarantee of origin (REGO) certificate mechanism would provide certainty for renewable electricity investment and procurement, and support Australia’s energy transformation.

The proposed REGO certificate mechanism would build on the effective and highly-regarded Large-scale Generation Certificate (LGC) framework under the Renewable Energy Target (RET) scheme. REGOs would initially exist alongside LGCs but would continue beyond 2030 when the RET ends. Implementing a REGO mechanism would not involve any changes to liability under the RET scheme.

It is proposed that REGOs would be able to be created for all renewable generation, including electricity exported overseas, electricity generated by small-scale solar PV and renewable electricity dispatched from storage facilities.

Consulting with the public

We released two consultation papers that form the proposed Guarantee of Origin Scheme on 12 December 2022. These papers propose detailed scheme design for:

  • the Guarantee of Origin scheme
  • renewable electricity certification.

Public consultation closes on 3 February 2023.

Previous consultation

The Clean Energy Regulator ran phase 1 of the Hydrogen Guarantee of Origin trials from March to October 2022. Participants were predominately from the hydrogen industry. Phase 2 will run from November 2022 to March 2023.

We ran targeted consultation with renewable electricity stakeholders during August and September 2022. Stakeholders explored the need for renewable electricity certification and possible scheme design features.

We released A Hydrogen Guarantee of Origin scheme for Australia paper on 21 June 2021. Public consultation closed on 6 August 2021. The paper proposed an approach to a Guarantee of Origin scheme for hydrogen in Australia.

We released an earlier Hydrogen Certification Survey in 2020 asking stakeholders about high-level aspects of an international and domestic hydrogen certification scheme. 

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