Environmental Certificates

Choose the instrument for the outcome you need

Northmore Gordon, formerly Wattly, helps businesses and delivery partners assess environmental certificate opportunities, manage evidence and access relevant markets. Work can involve a customer directly or an installer or other partner managing the customer relationship.

Start by defining the purpose: funding an eligible upgrade, creating value from renewable generation, supporting a renewable-electricity claim or obtaining carbon credits. These purposes involve different instruments and evidence. A certificate measured in megawatt hours is not interchangeable with a carbon credit measured in tonnes of carbon dioxide equivalent.

Energy-efficiency and peak-demand certificates

Victorian Energy Efficiency Certificates (VEECs)

VEECs are created for eligible activities under Victorian Energy Upgrades. Each represents one tonne of greenhouse gas emissions reduction under the scheme's calculation rules. Eligibility and quantities depend on the activity and its requirements, with creation undertaken through an accredited person.

Energy Savings Certificates (ESCs)

ESCs support eligible activities under the NSW Energy Savings Scheme. Each represents one notional megawatt hour of energy. The selected calculation method, customer arrangements and evidence determine the certificate result; a supplier invoice alone does not establish an entitlement.

Peak Reduction Certificates (PRCs)

PRCs belong to the NSW Peak Demand Reduction Scheme. They address eligible demand reduction under specified peak conditions. Reducing annual energy use and reducing peak demand are separate outcomes and need their own assessment.

For the relevant scheme pathways, see Australian government schemes.

Australian renewable-energy certificates

Large-scale Generation Certificates (LGCs)

LGCs are issued for eligible renewable generation under the Large-scale Renewable Energy Target. One LGC represents one megawatt hour of renewable electricity generated or displaced by an eligible power station. Their use for a purchaser's electricity claim depends on ownership, the reporting framework and the relevant surrender or retirement treatment.

Small-scale Technology Certificates (STCs)

STCs can reduce the upfront cost of eligible systems under the Small-scale Renewable Energy Scheme. Current eligible technology categories include solar PV, solar batteries, wind and hydro, solar water heaters and air-source heat pumps. The calculation depends on the technology, location, installation date and applicable rules. STCs and LGCs have different creation and use arrangements.

Check the Clean Energy Regulator's current eligibility information for a proposed installation rather than applying a capacity limit or rebate amount from an older example.

Renewable-electricity instruments in other markets

International Renewable Energy Certificates (I-RECs)

I-RECs record renewable-electricity attributes in participating markets. Selection needs to match the market, generation period and intended reporting claim.

Tradable Instruments for Global Renewables (TIGRs)

TIGRs are renewable-electricity instruments recorded through a registry. They should be assessed against the applicable market and claims requirements, rather than described as a universal carbon offset.

New Zealand Energy Certificates (NZ-ECs)

NZ-ECs provide a renewable-electricity certificate pathway associated with New Zealand. The evidence for a purchaser's claim should identify the consumption period, attributes acquired and their retirement or cancellation treatment.

For all renewable-electricity purchases, check that the same attributes are not sold to one party and claimed again by another.

Carbon credits and removal certificates

Australian Carbon Credit Units (ACCUs)

Eligible ACCU Scheme projects can earn units for emissions avoided or carbon stored. One ACCU represents one tonne of carbon dioxide equivalent. Projects must meet the applicable method, registration, monitoring and reporting requirements; a reduction in a company's inventory does not automatically create ACCUs.

Verra Verified Carbon Units (VCUs)

VCUs are issued under the Verified Carbon Standard programme. Evaluate the specific project, methodology and credit attributes when considering their use, rather than assuming all credits represent the same kind of reduction or removal.

Puro.earth CO₂ Removal Certificates (CORCs)

CORCs relate to certified carbon removal under the Puro Standard. Carbon removal and avoided emissions describe different physical outcomes and should be represented accurately in a claim.

Gold Standard credits

Gold Standard operates its own framework for certification of emissions-reduction, removal and sustainable-development impacts. It is a distinct programme from Puro.earth. The project and credit documentation determine the attributes being purchased.

Establish eligibility, value and the claim separately

For a project, document the location, existing and proposed equipment, project dates, available measurements and any prior assignment of certificate rights. Identify what evidence must be collected before works, during installation and after commissioning.

For a purchase, define the intended claim and the applicable reporting framework. Retain ownership, registry and retirement or cancellation records, together with the period and quantity covered. Renewable-electricity attributes do not automatically offset on-site fuel emissions or establish a whole-business carbon-neutral claim.

Certificate quantities, market prices and customer proceeds are separate considerations. Ask whether a quoted value is indicative or contracted, when the price applies, and which charges or conditions are included. Historical trading ranges are not a current quotation.

Discuss the project or purchase with Northmore Gordon, including the result you need to achieve and the evidence already available.

Are renewable-electricity certificates the same as carbon credits?

No. Renewable-electricity instruments record attributes associated with electricity. Carbon credits represent eligible emissions reductions or removals under their programme. Their units, creation rules and permitted uses differ, so select the instrument around the intended claim.

Can I assume an energy-saving upgrade will earn certificates?

No. The project must meet the applicable activity, method, timing and evidence requirements. Review eligibility and certificate ownership before relying on an incentive in the business case.

What is the difference between an ESC and a PRC?

An ESC relates to eligible energy savings under the NSW Energy Savings Scheme. A PRC relates to eligible peak-demand reduction under the NSW Peak Demand Reduction Scheme. Annual energy savings and peak-demand effects need separate assessment.

What evidence should support a renewable-electricity claim?

Define the reporting framework and retain evidence of the instrument, ownership, quantity, period and retirement or cancellation treatment. Confirm that the same renewable attributes are not being claimed by another party.

Does reducing my company's emissions automatically create ACCUs?

No. ACCUs are issued through eligible scheme projects with an applicable method, registration and ongoing evidence requirements. An inventory reduction and an issued carbon credit are different results.

How should certificate income be shown in a project estimate?

Show the assumed quantity, price and customer proceeds separately. State whether the price is indicative or contracted, identify its date and include relevant charges and outstanding conditions. An old market-price range is not a current quote.

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