Clause 3 provides that the principal Act amended by this Part is the Climate Change Response Act 2002 (the Act).

Clauses 4 to 8, 13 to 15, 20, 30, 31, 33, 34, and Schedule 1 of the Bill remove agriculture-specific references and obligations throughout the Act.

Clauses 9 and 10, 16, 18, 22 to 28, and 32 change all references to eligible activity to references to eligible industrial activity throughout the Act. This is because the existing definition of eligible activity refers to both industrial and agricultural activities. When the agricultural component is removed from that definition, the definition will no longer be required. Instead the Act will be able to rely on the specific industrial definition.

Clauses 11 and 12, 17, 19, 21, 28, and 29 make consequential amendments as a result of removing the agriculture-specific elements of the Act.

Clause 33 is the operative provision that removes agricultural activities from Part 5 of Schedule 3. Schedule 3 of the Act lists the activities where persons carrying out those activities are required to become participants under the emissions trading scheme, in which agriculture will no longer be included.

Clause 32 and Schedule 2 of the Bill provide transitional arrangements for participants who had already registered under the emissions trading scheme for agricultural activities. The transitional arrangements confirm that those participants cease to be participants under the Act (and therefore under the emissions trading scheme) in relation to agricultural activities, from the commencement of this Bill. The main exception is that they must retain any records that they have already collected (ie, any records they collected before the commencement of this Bill) for at least 7 years in accordance with the Act.

The transitional arrangements also require the Environmental Protection Authority (the EPA) to subsequently remove the agricultural participants from the participant register within 6 months. This will not affect any rights or obligations of those participants undertaking other activities or having holding accounts under the Act.

Normally, when the EPA removes a participant from the register, that participant will receive an automated notification to submit an emissions return for that year. However, to avoid the agricultural participants receiving an automated return notification for 2024 (as they will not be required to submit any emissions returns for agriculture activities in that year), the transitional provisions allow the EPA to enter a retrospective deregistration date for the agricultural participants. As an effect of this Bill, those participants will cease to be participants under the Act from the commencement date of this Bill. However, for the EPA’s administrative purposes only, the participant register may record a date of 31 December 2023 as the date they ceased to be participants under the scheme.

Clause 35 revokes 2 pieces of secondary legislation that will be redundant on the commencement of this Bill, as they relate to agricultural obligations.

Clauses 36 to 39 make related amendments to the Climate Change (General Exemptions) Order 2009 to remove the elements that relate to agricultural obligations.