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Emissions Intensity Index

In February 2012, the Independent Market Operator (IMO) tabled an Issues Paper to the Market Advisory Committee (MAC) relating to the issues arising from the introduction of a carbon pricing mechanism with effect from 1 July 2012. The paper proposed that the IMO explore the concept of an Emissions Intensity Index (EII) for the Wholesale Electricity Market (WEM).

In response to the interest shown by MAC on this issue, the IMO sought submissions from the wider market endorsing the IMO recommendations, with a view to developing and publishing a credible emissions intensity index for the WEM, based on participant-sourced emissions intensity data and SCADA data, calculated and published at Trading Interval level.

The IMO proposes that the data provision, index calculation and publication be embedded in due course in the Market Rules and a Market Procedure.

Thank you to those WEM Participants who have provided feedback in the form of submissions. The submissions received can be read below.

Background documentation

  1. the EII Consultation Paper -  prepared by the IMO and sent to WEM Participants requesting feedback and
  2. the EII Acil Tasman Report - commissioned by the IMO to advise on the structure of the Emissions Intensity Index (EII).