Unit of competency Outline

Date retreived
22/07/2026 1:34 AM AWST

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Apply knowledge of emissions markets

Apply knowledge of emissions markets

Unit of competency
National Code
FNSFMK512A
State Code
WE877
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
18/12/2012
View on TGA
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081199 - Banking, Finance And Related Fields, N.e.c.
Original Release Date
29/07/2014
Nominal Hours
50
Description
This unit describes the background knowledge and understanding required and performance outcomes expected of a market participant in the emissions markets.This unit is intended, to address the specialist knowledge requirements of those intending to operate in the emissions marketplace. This embodies that mandatory knowledge outlined in ASIC RG146 Appendix A2.11. Note: this competency does not address the skills or the generic knowledge requirements in ASIC RG 146
Notes
Elements and Performance Criteria
1. Comply with the regulatory framework unique to emissions markets
  • 1.1 Identify the domestic and international regulatory framework within which emissions reduction schemes are placed
  • 1.2 Identify the key legislation, regulation and industry codes of practice relevant to operating within Australian emissions markets
  • 1.3 Comply with relevant legal and regulatory principles when operating in emissions markets
  • 1.4 Discuss regulatory risk for both voluntary and regulated emissions markets and determine possible impacts of pending regulatory or legislative change
2. Evaluate the scope and impact of the emissions market
  • 2.1 Identify regulated and voluntary carbon markets and outline how they operate
  • 2.2 Distinguish the respective supply and demand drivers for voluntary and regulated markets
  • 2.3 Describe price drivers for emissions products
  • 2.4 Differentiate participants in carbon markets and the motivations for their participation
  • 2.5 Distinguish the functions of the primary and secondary emissions markets
  • 2.6 Discuss auction types and processes
  • 2.7 Describe the functions, requirements and rules for registries
3. Identify the types of emissions products, their characteristics and liabilities
  • 3.1 Compare the different types of emissions products available of emissions instruments traded in the compliance and voluntary markets
  • 3.2 Identify the key features of compliance market products
  • 3.3 Describe the risks inherent within each product and their potential impact in a given context.
  • 3.4 Describe transactional processes for each product, including acquiring, transferring and surrendering
  • 3.5 Describe the tax treatment of emissions products, including deductibility of costs where relevant
4. Apply knowledge of emissions products
  • 4.1 Determine relevant market information influencing the market
  • 4.2 Analyse relevant information when selecting products for an emissions markets transaction
  • 4.3 Devise strategies for using emissions market products
  • 4.4 Seek advice and guidance of specialist expertise where required
  • 4.5 Apply knowledge of financial market transactional processes when operating in emissions markets
  • 4.6 Complete relevant documentation and complete any additional organisational processes
5. Maintain emissions market knowledge
  • 5.1 Relevant emissions trading markets sources are reviewed regularly and any changes are applied in daily work
  • 5.2 Maintain professional competence in market knowledge in accordance with codes of conduct and/or organisational requirements
  • 5.2 Processes for maintaining up-to-date knowledge about relevant aspects of emissions trading markets are implemented
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Emissions markets include:
Domestic and international carbon markets
Voluntary markets
Compliance markets
Emissions products include:
carbon units (issued by the Clean Energy Regulator under the Clean Energy Act) (ACUs);
Australian carbon credit units (issued by the Clean Energy Regulatory under the Carbon Farming Initiative) (ACCUs); and
eligible international emissions units (EIEUs).
voluntary environmental schemes
Participants include:
Liable entities
Financial intermediaries
Carbon farming project proponents
Speculators
Transactional processes include
Acquiring emissions units
Transferring emissions units
Auction processes
Registry processes
Surrendering emissions units
Transaction documentation
Regulatory
Organisation
Exchange-required
Market information includes:
Economic statistics and data
Government policy changes
Trading data, including pricing, liquidity and limits (market and credit)
Market standards and conventions affecting transaction sizes
Emissions market transaction purpose includes:
Hedging
Acquitting liability
Trading
Advising
speculating
Not applicable.
Replaced By
State Code National Code Title Type
AUR23 FNSFMK512 Apply knowledge of emissions markets Unit of competency
State Code National Code Title Type
D722 FNS51011 Diploma of Financial Markets Qualification