Government introduces Guarantee of Origin Scheme to foster low-emission industries
The Australian Government has introduced to parliament legislation regarding a Guarantee of Origin (GO) scheme, designed to track and verify the emissions of products like hydrogen and renewable electricity.
The GO Scheme has been subject to extensive consultation with industry, business, including the climate change and renewable energy sector, as well as state and territory governments through a policy design process that began in 2020.
If passed into law, the GO scheme will be voluntary and initially open to the hydrogen industry, with plans to expand to other sectors such as metals and low-emissions fuels. The system works by issuing digital certificates that document a product’s lifecycle, showing where and how it was produced and transported. At each stage of the supply chain, details about greenhouse gas emissions are added, helping to ensure transparency and accountability.
Assistant Minister for Climate Change and Energy, Josh Wilson, said the GO scheme "is an essential platform for unlocking crucial investment in Australia’s net zero industries." He highlighted that the certificates will allow Australian businesses to verify their low-emission products, helping them meet growing market demands for cleaner goods.
The GO scheme will include two types of certificates. The first, Product GO certificates, will apply to products like hydrogen. These certificates will track the carbon intensity of each product, recording details from production through to delivery. The second, Renewable Electricity Guarantee of Origin (REGO) certificates, will focus on renewable electricity and provide proof of when, where, and how it was produced.
As part of the $6.7 billion Hydrogen Production Tax Incentive, the GO certificates will also be crucial in expanding Australia’s hydrogen production industry. The scheme is expected to evolve, eventually covering a wider range of low-emissions products and helping to decarbonise the economy by encouraging businesses to reduce their carbon footprints.
The Clean Energy Regulator will oversee the GO scheme, ensuring that the data collected through the certificates is accurate and transparent. The certificates are designed to align with international standards, improving Australia’s competitiveness in both domestic and international markets.
The legislation is currently before the Senate Environment and Communications Legislation Committee.
