1. © 2011 Ndevr Pty Ltd – Proprietary and Confidential THE NATIONAL GREENHOUSE & ENERGY REPORTING ACT and CARBON PRICING Presentation to the Civil Contractors Association Matt Drum Principal Consultant Ndevr Environmental Consulting

2. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Types of Greenhouse Gas Emissions

3. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Boundary Issues Contractor Vehicles Electricity Use Company Vehicles Image Credit: David Iliff – Wikimedia Commons

4. © 2011 Ndevr Pty Ltd – Proprietary and Confidential NGER Thresholds in Common Terms Emissions/Energy SourceAmount Facility Threshold Triggered Approx. Cost Electricity24 000 MWh Facility: greenhouse gas emissions (carbon dioxide equivalent –CO 2 -e) $744,000 Automotive diesel2 590 000 litres Facility: energy consumption $3,432,000 Bitumen2,300 tonnesEnergy consumptionNA [1] [1] Rounded amount based on the AEMO average spot price Victoria 2009/10, $36.33/MWh. [2] [2] Rounded amount assuming national average weighted price of $1.325/litre, w/e 27/06/2010 (AIP) exc. FTCs.

5. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Key Issues Contractors need to be able to report fuel usage at the site level Large Principal Contractors are starting to include data clauses in contracts Carbon pricing will ‘sharpen’ the compliance approach Liquid fuels are the main issue for this sector – Diesel – Unleaded – Biofuels and blends

6. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Key Issues Most wont be directly affected by the carbon price (costs passed through from refiners) Only very large users will be directly liable Transport and non-transport fuels treated differently with regards to excise ‘offset’ – Need to be able to disaggregate – Non-transport liquid fuels not eligible for excise offset (as initially proposed) CCF have developed information packages

7. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Subsidy Approach -FTCs FTC reduction per fuel type Ag. Fishery and Forestry Exempt Biofuels exempt – considered carbon neutral Stationary fuel (non-registered) TBC – may be subject to an effective carbon price Fuel2012-132013-142014-15 Petrol5.525.7966.096 Diesel and other liquid fuels 6.216.5216.858 LPG3.683.8644.068 LNG & CNG6.677.0047.366

8. © 2011 Ndevr Pty Ltd – Proprietary and Confidential Questions? Matt Drum |Principal Consultant - Environment RABQSA Environmental Auditor | NGER Accredited Auditor (0120/2011) Ndevr Pty Ltd | tel : +61 3 9865 1400 | mobile : +61 406 757 289 web: www.ndevr.com.au | Melbourne - Sydney - Brisbanewww.ndevr.com.au Matt.Drum@ndevr.com.au