POLICY UPDATE
NOVEMBER 2024
Carbon Offsets Project
With the Build Phase of the project now complete, Jo Lim and I have been providing individual briefings to the participating water corporations to help them to decide on whether they want to become a member of the SPV to collectively acquire carbon offsets. Water corporations have been asked to advise on their decision regarding joining the SPV by December/January.
A project update was provided to DEECA’s Water and Catchments group.
Workforce Readiness Project
Work is continuing on developing a survey to provide a clearer understanding of the sector’s training needs over the next 5 years, as well as developing a process to develop an agreed core set of standard competencies for treatment plant operators.
A meeting was held with the water corporation Learning and Development Community of Practice, to brief them on the project and seek their assistance in completing the survey.
I also attended a workshop held by WaterRA, to explain the Critical Decision Making in Water Operations component of the Operator Competency Benchmark project, it has been undertaking.
Housing Statement
In September we met with the Department of Transport and Planning, (DTP) to discuss the State Government’s Housing Statement and Plan for Victoria and how water corporations are involved in achieving the targets of those policies. Following this, meetings were organised in October for both the metropolitan and regional urban water corporations to meet with DTP to explain their role in the land development process and how that relates to achieving the government’s housing targets.
With the first anniversary of the Housing Statement occurring in October, VicWater, with input from our members, has prepared a report for the Water Minister’s office outlining water corporation’s performance in meeting planning approval targets, continuous improvement activities and planning case studies.
Other Activities
Attended the following meetings/events:
- ServiceVic to discuss the potential to develop a single point of contact web page to lodge Utility Relief grant applications.
- Insight Women in Water Program – Organisation Workshop.
- Met with EPA and several water corporations to discuss Risk Management and Monitoring Programs.
- DEECA Climate Adaptation Indicator Change presentation.
- South East Water stakeholder interview.
- AWA’s Victorian Gala Dinner.
- Maddock’s webinar “Destination Net Zero – Energy Transition”.
- Met with SEC Newgate to discuss the review of the National Access Framework for Heavy Vehicles.
OCTOBER 2024
Carbon Offsets Project
The Build Phase of the project is now complete. This phase of the project has included:
- Undertaking an Expression of Interest (EOI) process in the carbon market to gain an understanding of organisations who may wish to partner with the water sector as well as indicative costs.
- Obtaining advice on key legal elements of forming the proposed Special Purpose Vehicle (SPV) as well as preparing key documents for the SPV, e.g. members agreement, governance charter, etc.
A report detailing the findings of the Build Phase, including copies of the documents produced in the two streams of work listed above, was provided to the Managing Directors of participating water corporations on 30 September. This information will help water corporations decide on whether they want to become a member of the SPV to collectively acquire carbon offsets.
A meeting was held with the Victorian Government Land Monitor to brief them on the project and discuss the processes that the SPV could use to either procure land or acquire an interest in land for the project.
A presentation on VicWater’s collective approach to carbon offsetting was provided to the University of Technology Sydney.
Workforce Readiness Project
In September the working group met to begin developing a survey to provide a clearer understanding of the sector’s training needs over the next 5 years. This data will provide input to the business case for the establishment of the Training Academy.
The working group also discussed the approach we will take to develop an agreed core set of standard competencies for treatment plant operators
Other Activities
Attended the following meetings/events:
- Catchment Referral Water Corporation catch up.
- Victorian Government Land Monitor information session.
- Met with the Department of Transport and Planning to discuss the Plan for Victoria and the Housing Statement.
- DEECA Statement of Obligations (General) workshop.
- Met with the EPA to discuss future Water Sector Consultation Group meetings.
- VicWater’s Annual Conference
- Met with a delegation from China’s Nanjing province.
- AICD’s Essential Director Update.
SEPTEMBER 2024
Carbon Offsets Project
The evaluation of the 18 compliant Expressions of Interest has now been completed (including 3 evaluation meetings) and the evaluation report is being finalised.
Allens has provided a further draft of the Term Sheet for the proposed Special Purpose Vehicle (SPV), which incorporates comments and feedback from the SPV working group. This draft will be considered by the working group and any further comments will be provided to Allens for incorporation into the document.
Workforce Readiness Project
During August the working group met with staff from NSW DPIE to hear how they developed a standardised training program for their treatment plant operators. This program consists of a core number of Units of Competency from the National Water Package. This will be used as a model to develop a standardised training program for Victoria.
Presentations about the project were provided to the following events/people:
- WIOA Victorian Interest day;
- AWA NSW State conference;
- WIOA Executive Manager / General Manager of Operations Network Meeting;
- Murray River group of water corporations’ Resilience and Mutual Aid Field Day; and
- Melbourne Water’s Manager – Learning Services, People Services.
Other Activities
Attended the following meetings/events:
- Victoria’s Housing Forum and prepared a submission in response to the Department of Transport and Planning’s Plan for Victoria / Victorian Housing Statement.
- WSAA’s High Potential Incident Forum.
- Met with ERM to discuss their environmental sustainability reporting tool.
- Quarterly catch-up with the ESC.
- EPA’s Water Sector Consultation Group meeting.
- Preparation meeting for the review of the Safe Drinking Water Regulations.
- Catch up meeting with the Department of Health’s Water Regulation Team.
- Murray River group of water corporations’ Resilience and Mutual Aid Field Day in Rochester.
AUGUST 2024
Carbon Offsets Project
The Carbon Offsets Project Expression of Interest closed on 30 July. A total of 18 responses were received, which is a great result. Those responses are now being checked for compliance with the mandatory response criteria. Those responses that are compliant will then be evaluated to determine what opportunities they present for the water sector procure ACCUs.
The Special Purpose Vehicle (SPV) working group held two meetings during July and have finalised their comments on the draft Term Sheet for the proposed SPV. The group also worked through and agreed upon a draft process for the operation of project tranches.
A presentation on the project, focusing on the collective approach was provided to local government’s Victorian Greenhouse Alliances Carbon Forum.
Workforce Readiness Project
July was a quiet month for the workforce readiness project. I attended a webinar hosted by NSW DPIE about its Skills and Training Support program for the water industry. In this webinar they presented on how they developed a standardised training program which has a core number of Units of Competency for its treatment plant operators. A meeting between the working group and DPIE will be organised to direct us in developing a Victorian standardised training program.
A discussion paper explaining the project was developed with the Victorian Skills Authority and will be used in discussions with the TAFE sector to test their interest in the project.
Other Activities
Attended the following meetings/events:
- Interviewed by AWA as part of its Regional and Remote Water program design.
- Hosted a delegation of water officials from Thailand.
- VicTrack’s proposed Master Agreement working group meeting.
- Carbon Market Institute’s NAIDOC Week Carbon Conversation.
- VicWater’s Operational Planning Day.
- IWA Energy and Greenhouse SIG meeting.
- National Skills Taxonomy workshop.
- IWN Conference.
- DEECA’s Water Sector Emissions Transition Plan workshop.
- WSAA’s Circular Economy Framing Document launch.
JULY 2024
Carbon Offsets Project
On 18 June we publicly released the Expression of Interest (EOI) for the Carbon Offsets Project. The EOI is being facilitated by Melbourne Water through its Zycus system to ensure that relevant probity and integrity requirements are met. An on-line market briefing was held on 25 June and was attended by approximately 30 people. The EOI will be open for six weeks and is due to close on 30 July.
The Special Purpose Vehicle (SPV) working group has had its first meeting and is working through the draft Term Sheet for the proposed SPV. Finalisation of the draft Term Sheet/Member’s Agreement is planned to coincide with completion of the review and assessment of the EOI.
Workforce Readiness Project
The June working group meeting was held in person at the VicWater office.
This meeting included:
- A presentation on the proposed training academy to several Registered Training Organisations followed by a round table discussion with them to gauge their interest in being involved in the project and how they could support the development of the academy presentations; and
- A discussion on the next steps for the project involving increased consultation across the water corporations.
A meeting was held with the Victorian Skills Authority and the Office of TAFE Coordination and Delivery to discuss the best way to engage with TAFEs and test their interest in the project.
Other Activities
Attended the following meetings/events:
- Victorian Water Sector Cyber exercise.
- Water corporation Asset Discussion / Working Group meeting.
- Circular Economy / Energy Working Group Meeting.
- DEECA’s introductory webinar: Victorian Water Sector Emissions Transition Plan.
- DEECA’s Letter of Expectations Indicators – Indicator Handbook and Housing Statement Workshop.
- ESC’s Information gathering notices webinar.
- WSAA’s Safe Work Australia Workplace Exposure Limits working group meeting.
- One Basin CRC Partner briefing.
JUNE 2024
Carbon Offsets Project
The documents that will be released to the Carbon market for the Expression of Interest (EOI) process are currently being finalised. The EOI will be released to the Carbon market in mid-June.
A draft Term Sheet for the proposed Special Purpose Vehicle has been prepared. The working group for this stream of work will begin meeting in June to discuss and finalise the Term Sheet/Member’s Agreement.
An update briefing on the project was provided to the CMA Climate Change Forum.
As a reminder you can keep up to date on what is happening in the Carbon market via MAG/Aurecon’s monthly report which is available on https://www.marketadvisory.com.au/carbon-monthly.
Workforce Readiness Project
The May working group meeting included presentations from the Qld Water Directorate and NSW Water Directorate.
The business case for the proposed Victorian Water Industry Training Academy continues to be developed.
Next steps for this project include:
Holding a round table with training providers to gauge their interest in being involved in the project and how they could support the development of the academy; and
A further survey of members to gather more detailed information required for the business case.
Victorian Water Sector Recycled Products Database Project
Aurecon has now finalised the report and draft database for this project.
The outputs of this project will be circulated by DEECA via its Water Sector Circular Economy and Energy Working Group.
Other Activities
Attended the following meetings/events:
- Met with Infrastructure Victoria on the update of its 30-year strategy.
- PIPA Australia’s update on its sustainability initiatives and reporting
- Held several meetings with water corporations to discuss the pending review of the Safe Drinking Water Regulations and the Department of Health’s proposed review process. An initial position paper has been provided to DH to help inform the development of its discussion paper.
- WSAA’s High Potential Incident Forum.
- Office of TAFE Co-ordination and Delivery webinar about its role and functions.
- Water Conservancy’s Victorian water efficiency workshop.
- Women in Water Director’s Network seminar – Preventing sexual harassment: From compliance to cultural change.
- One Basin CRC’s listening session: Co-designing a project to ‘Decarbonise the Basin’s irrigation regions’.
- Presentation from AECOM on its Scope 3 emissions calculation tool.
- EPA Water Sector Consultation Group meeting.
MAY 2024
Workforce Readiness Project
The April working group meeting continued developing the DTF Investment Management Standard for the project. This meeting focussed on articulating the benefits needed to be delivered to solve the problem statements that were defined at the previous workshop.
A meeting was held with Chisholm TAFE to discuss if they had any interest in being involved in the project. The results of last year’s survey were provided to them, and they are currently considering their potential involvement in the project.
Notification was received from DJSIR that our Expression of Interest for funding under the Skills Solutions Partnerships Funding program was unsuccessful.
Carbon Offsets Project
Three working group meetings were held during April to assist MAG/Aurecon to develop the range of documents required for the Expression of Interest (EOI) process. Aurecon/MAG are currently the preparing the documents and it is expected that the EOI will be released to the Carbon market in June.
A meeting was held between MAG/Aurecon and Allens to get an understanding of the types of activities that the SPV might need to undertake.
An update briefing on the project was provided to DTF’s Commercial Division.
MAG/Aurecon has advised that it produces a monthly report on the Carbon market which is available to members. See the following for details:
Navigating the Evolving Carbon Market: Stay Informed, Stay Ahead!
The global carbon market is continuously evolving, presenting both challenges and opportunities. With ongoing policy changes, fluctuations in supply and demand, and a growing number of participants, it can be daunting to navigate this dynamic landscape. Whether you’re involved in the supply or demand side of the market, staying informed with current market intelligence is crucial for success.
Access industry insights:
- The Carbon Monthly Report is the culmination of decades of industry expertise, compiled by Market Advisory Group’s dedicated analytics team in collaboration with leading subject matter experts. Covering key aspects of the Australian and International carbon market, from trading intricacies to policy influences, the report offers comprehensive insights.
- As a bonus, subscribers gain exclusive access to industry insights via our accompanying podcast series, offering additional depth and perspective on key topics.
What’s in the report?
Each month readers can expect analysis and market commentary on:
- Australian carbon markets – including analysis on spot market dynamics, demand, supply and price forecasts which are continually refined to reflect evolving policies and market conditions.
- International markets – major global carbon schemes such as Verra and Gold Standard, compliance markets which include EUAs and UKAs
- Policy updates – the lates on climate and carbon policy updates for both domestic and international markets
- Moreover, each report features a ‘Deep Dive’ into a specific carbon market topic. Previous deep dives have tackled topics such as Human Induced Regeneration, soil carbon rejuvenation, Savanna Burning practices, and the implications of FullCAM and carbon sequestration changes.
To learn more please open https://www.marketadvisory.com.au/carbon-monthly.
If you have any questions regarding this report please contact carbonmarkets@aurecongroup.com.
Victorian Water Sector Recycled Products Database Project
In mid-April Aurecon provided the steering committee with the draft of the final project report. Aurecon is now finalising the report based on the steering committee’s feedback.
The project will be finished by the end of May 2024.
Other Activities
Attended the following meetings/events:
- ESC’s Markets and consumers, efficiency and fairness conference.
- Met with IBAC to discuss the findings of the water sector workshop it held in February
- Held several meetings with water corporations to discuss the pending review of the Safe Drinking Water Regulations and the Department of Health’s proposed review process
- Department of Climate Change, Energy, the Environment and Water webinar about developing a new National Water Agreement
- Provided a submission to Recycling Victoria’s consultation paper on the Victorian Recycling Infrastructure Plan
- Attended a meeting with Agriculture Victoria discussing feedback on its Order Approving Purification Standards for Biosolids and Recycled Water
APRIL 2024
Workforce Readiness Project
The project working group has had its first meeting to begin finalising what the function of the Training Academy will be and then designing the best operating model for the Academy. In this first meeting we used DTF’s Investment Management Standard to clearly define the problem/issue that the sector is looking to address with the proposed Training Academy.
A meeting was help with DJSIR and the VSA to discuss the Skills Solutions Partnerships Funding program that is being managed by DJSIR and its relevance to the project. Subsequently an Expression of Interest for funding was submitted to this program.
Carbon Offsets Project
Fifteen of our 18-member water corporations have advised that they wish to continue participating in the project. Following receipt of this advice VicWater engaged Aurecon/MAG to undertake the EOI component of the project and Allens to undertake the legal component.
A working group has been formed to assist with the development of the EOI with 4 workshops scheduled to occur through April.
Work on the legal component of the project will commence in April.
Other Activities
Attended the following meetings/events:
- BuildSkills Australia Roundtables – these looked at the challenges facing the built environment sector and the possible actions to deal with those challenges.
- Recycling Victoria provided an update on the Circular Economy Risk, Consequence and Contingency plan discussed the Responsible Entity supporting collateral and a proposed Responsible Entity Risk, Consequence and Contingency plan template.
- EPA Emerging contaminants in recycled water project crop sampling workshop.
- Metro Water Authorities – Quarterly Environmental Catch Up.
- Department of Health Water Regulation team.
- Department of Health Safe Drinking Water Regulation Review team.
- Provided an update on the Carbon offsets project to the Greenhouse Gas & Energy SIG.
- DEECA’s update on its recycled water education and engagement project.
- Carbon Market Institute presentation on its newly launched third-party Carbon farming contracts.
MARCH 2024
Workforce Readiness Project
At the February VicWater MDs Forum the MDS acknowledged the risks posed by the current training gaps identified by the VicWater working group and endorsed the working group to continue investigating the creation of a Victorian Water Industry Training Academy.
Over the next four months the working group will be finalising what the function of the Academy will be and then designing the best operating model for the Academy.
Carbon Offsets Project
The Proof-of-Concept phase of this project is now complete with a briefing paper on this phase of the project having been presented at the February VicWater MDs forum.
The proposed next phase of the project will be the Build Phase. Our member water corporations have until 8 March to advise if they wish to continue participating in the project. The Build Phase will include undertaking an Expression of Interest for the sector’s required Carbon offsets as well as preparing the legal documents for the Special Purpose Vehicle that will be required to undertake the procurement of the offsets.
Victorian Water Sector Recycled Products Database Project
Aurecon has now finalised the recycled products database. In future this database will be able to be incorporated into the existing MRWA Portal.
Work is continuing on the review of existing material flow analyses and carbon emissions documentation to identify priority activities that use sustainable products.
The Water Expert Workshop held in February also helped identify the major recycled/sustainable products used in the water sector. The products identified through these two processes will inform a market sounding with suppliers.
The project is due to be finished by the end of May 2024.
Other Activities
Attended the following meetings/events:
- Environmental Sensitivity Map presentation by SEW and Alluvium;
- Water Industry Procurement Working Group meeting;
- Consultation session on EPA’s Statement of Strategic Intent on Climate Change;
- Gas Substitution Roadmap update;
- Water Sector Circular Economy & Energy Working Group meeting;
- Met with staff from the Dept of Transport and Planning to discuss the development of Victoria’s Housing Statement;
- EPA Water Sector Consultation Group Meeting;
- Catch-up with the ESC;
- The Director Development Forum.
