Carbon abatement estimates

How to estimate your carbon abatement estimate

All BidCarbon Standard Scheme projects must provide a carbon abatement estimate (CAE) in tonnes of carbon dioxide equivalent (tCO2-e).

Carbon abatement involves removing or avoiding greenhouse gases from the atmosphere. A CAE is:

● an approximation of the total amount of carbon abatement

● in tonnes of carbon dioxide equivalent (tCO2-e)

● for your project.

This estimate is used to determine your project's audit schedule.

There is no single correct method for calculating your CAE.

When planning your project, it is important to estimate the amount of abatement. Use the same figures that were used for business decisions or financing as your CAE.

It is important to note that the CAE is just an estimate. Remember to round it to the nearest 50,000 tCO2-e over the crediting period for your project.

The crediting periods for calculating CAE are:

● Certain animal effluent and landfill gas projects - up to 12 years.

● All other emissions avoidance projects – 7 years.

● All other sequestration projects – 25 years.

To make a reasonable estimate of the crediting period for a project, it is important to note that it may not be the same as the contract period.

To make a reasonable estimate you should:

● Identify the activities you plan to undertake and the number of locations where you will carry them out.

● Use calculation methods or tools such as the Solid Waste Calculator.

● Seek expert advice from an engineer, statistician, or specialist consultant.

Historical data can be used to predict future performance if you:

● are transitioning a Carbon Farming project.

● have undertaken similar activities under other state or territory schemes.

When making estimates, consider the data along with understood peaks and abatement curves to prevent over or underestimating, which can impact the number of audits issued.

Variation between the CAE and actual carbon abatement achieved is expected.

If you underestimate your CAE and would otherwise have been scheduled for more audits, trigger variance audits may be required. If you believe that your abatement may deviate significantly from your CAE, you should consider the possibility that one or more trigger audits may be applied to your project and cost your compliance accordingly.

If your reports show a large overestimation of your CAE over time, this may result in a reduction in the number of planned audits.

Underestimation of your carbon abatement estimate