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In 2007/08, AGL entered into the first forward trade of an Australian Emissions Unit (AEU), the commodity of the proposed Carbon Pollution Reduction Scheme (CPRS), with Westpac. The trade was initiated by AGL with supporting documentation and administration provided by AGL and Minter Ellison. Since that time, AGL has continued to trade AEUs ahead of the introduction of the CPRS in 2011.
This initiative is in addition to the trading already undertaken by AGL in other markets such as the New South Wales Greenhouse Gas Abatement Scheme, the Queensland 13% Gas Scheme, the Mandatory Renewable Energy Target, GreenPower and emerging energy efficiency trading schemes.
In 2006/07, we joined the Chicago Climate Exchange (CCX), the world's first voluntary and legally binding greenhouse gas emissions reduction, registry and trading program. AGL has agreed that, by 2010, it will reduce scope 1 emissions at Loy Yang A power station and Torrens Island Power Station by 6% compared with 2000 emission levels (either directly or through the purchase of offsets). Reductions achieved through CCX are the only reductions in North America being achieved through a legally binding compliance regime. AGL will continue to participate in the CCX until the commencement of the proposed CPRS in Australia.
By becoming a member of the CCX AGL has been able to take advantage of a portfolio of highly efficient generation and trade allowances with other companies around the globe seeking to reduce their own carbon footprint. AGL is able to access the global buyers for its many carbon offset projects. AGL complied with its obligations to the CCX in 2008/09.
Greater Energy Alliance Corporation (which is 32.5% owned by AGL) and the Loy Yang A power station, became the first trader of a Kyoto Certified Emission Reduction (CER) unit in Australia. Loy Yang Power and Arcadia Energy Trading completed the trade for 100,000 tonnes, with delivery to occur in December 2011.
