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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Australia’s regulation of scope 3 emissions

Matthew Holding A *
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A Xodus Group, Perth, WA, Australia.

* Correspondence to: matthew.holding@xodusgroup.com

The APPEA Journal 63 S391-S394 https://doi.org/10.1071/AJ22132
Accepted: 7 March 2023   Published: 11 May 2023

© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.

Abstract

Greenhouse gas (GHG) emissions occur throughout the value chain of petroleum developments, including scope 3 emissions, which occur because of activities related to a development but not controlled or owned by that facility’s business. Scope 3 emissions are created predominately by using hydrocarbon products produced by Australia’s petroleum industry. The Australian petroleum industry is subject to a structured and robust regulatory framework to manage environmental impacts. Recently, scope 3 emissions from Australia’s petroleum sector are facing greater regulatory scrutiny. There are a number of drivers for scope 3 emissions regulation, including: Environment Protection and Biodiversity Conservation Act 1999 (Cth) section 527E indirect consequences of an action. Western Australian Draft revised Environmental Factor Guideline – Greenhouse Gas Emissions. These mechanisms provide Australian regulators the ability to enforce project proponents to manage their scope 3 emissions. Some measures that project proponents use to meet these requirements are: Assist the upstream supply network (e.g. regasification and distribution) to implement fugitive methane emissions reduction measures such as the Methane Guiding Principles; Undertake an annual review of indirect emissions; and Collaboratively work with customers to reduce emissions. This creates a project-centric approach to scope 3 emissions management. This paper explores regulation of scope 3 emissions, the impacts this regulatory approach has on project proponents and customers, whilst also considering alternative mechanisms to manage these emissions and meet regulatory requirements and climate goals.

Keywords: abatement, acceptable, emissions, energy transition, GHG, greenhouse gas, net zero, product use, Safeguard Mechanism, scope 3.

Matt has over 15 years’ experience in carbon abatement and environmental management. His understanding of the regulatory, scientific and industry trends see him operate at the forefront of greenhouse gas (GHG) management. Matt’s career initially focused on environmental management and government approvals, and diversified his experience to include project management, health and safety, and risk management. Matt is currently employed by Xodus as the Climate and Emissions Lead, where he leads work scopes with complex regulatory and corporate drivers including GHG studies, GHG management plans, prepurchase due diligence and advisory projects. Prior to Xodus, Matt was the Study Manager for deepC Store Limited, leading a group of eight tier 1 organisations to execute a Phase 1 Feasibility Study for the CStore1 Floating Carbon Capture and Storage Project in offshore Australia.