Annex 3: Eligibility rules under the proposed CPRS EITE Assistance Scheme
Under the Carbon Pollution Reduction Scheme (CPRS) activities must pass two tests before they are considered eligible for assistance: A trade exposure test and an emissions intensity test.
Trade exposure is assessed through a quantitative or qualitative test:
- Quantitative test: Trade share (ratio of the value of imports and exports to the value of domestic production) is greater than 10% in any one of the years 2004–05, 2005–06, 2006–07 or 2007–08.
- Qualitative test: Demonstrated lack of capacity to pass through costs due to the potential for international competition.
Emissions intensity is defined based on tonnes of emissions per 1 million Australian dollars of revenue or value added:
- A moderately emissions-intensive activity has between 1000 tonnes and 1999 tonnes of CO2-e/$AUm of revenue OR between 3000 tonnes and 5999 tonnes of CO2e/$AUm of Value Added.
- A highly emissions intensive activity has greater than 2000 tonnes of CO2e/$AUm of revenue OR greater than 6000 tonnes of CO2e/$AUm of Value Added.
An activity must meet both these tests to be eligible for assistance. Moderately emissions intensive activities are eligible for assistance with CPRS obligations for 60% of their baseline emissions and highly emissions intensive activities are eligible for assistance with CPRS obligations for 90% of their baseline emissions.
