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Evidence Guide: FNSFMK512 - Apply knowledge of emissions markets

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSFMK512 - Apply knowledge of emissions markets

What evidence can you provide to prove your understanding of each of the following citeria?

Comply with regulatory framework unique to emissions markets

  1. Identify domestic and international regulatory framework within which emissions reduction schemes are placed
  2. Identify key legislation, regulation and industry codes of practice relevant to operating within Australian emissions markets
  3. Comply with relevant legal and regulatory principles when operating in emissions markets
  4. Discuss regulatory risk for both voluntary and regulated emissions markets, and determine possible impacts of pending regulatory or legislative change
Identify domestic and international regulatory framework within which emissions reduction schemes are placed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify key legislation, regulation and industry codes of practice relevant to operating within Australian emissions markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Comply with relevant legal and regulatory principles when operating in emissions markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss regulatory risk for both voluntary and regulated emissions markets, and determine possible impacts of pending regulatory or legislative change

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate scope and impact of emissions markets

  1. Identify regulated and voluntary carbon markets and outline how they operate
  2. Distinguish respective supply and demand drivers for voluntary and regulated markets
  3. Describe price drivers for emissions products
  4. Differentiate participants in carbon markets and motivations for their participation
  5. Distinguish functions of primary and secondary emissions markets
  6. Discuss auction types and processes
  7. Describe functions, requirements and rules for registries
Identify regulated and voluntary carbon markets and outline how they operate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Distinguish respective supply and demand drivers for voluntary and regulated markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe price drivers for emissions products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Differentiate participants in carbon markets and motivations for their participation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Distinguish functions of primary and secondary emissions markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss auction types and processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe functions, requirements and rules for registries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify types of emissions products, their characteristics and liabilities

  1. Compare different types of emissions products and instruments traded in compliance and voluntary markets
  2. Identify key features of compliance market products
  3. Describe risks inherent within each product and their potential impact in given context
  4. Describe transactional processes for each product, including acquiring, transferring and surrendering
  5. Describe tax treatment of emissions products, including deductibility of costs where relevant
Compare different types of emissions products and instruments traded in compliance and voluntary markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify key features of compliance market products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe risks inherent within each product and their potential impact in given context

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe transactional processes for each product, including acquiring, transferring and surrendering

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Describe tax treatment of emissions products, including deductibility of costs where relevant

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply knowledge of emissions products

  1. Determine relevant information influencing the market
  2. Analyse relevant information when selecting products for emissions markets transaction
  3. Devise strategies for using emissions market products
  4. Seek advice, guidance and specialist expertise when required
  5. Apply knowledge of financial market transactional processes when operating in emissions markets
  6. Complete relevant documentation and complete any additional organisational processes
Determine relevant information influencing the market

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse relevant information when selecting products for emissions markets transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Devise strategies for using emissions market products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek advice, guidance and specialist expertise when required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply knowledge of financial market transactional processes when operating in emissions markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete relevant documentation and complete any additional organisational processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain emissions market knowledge

  1. Review relevant emissions trading markets sources regularly and apply any changes in daily work
  2. Maintain professional competence in market knowledge in accordance with codes of conduct and/or organisational requirements
  3. Implement processes for maintaining up-to-date knowledge of relevant aspects of emissions trading markets
Review relevant emissions trading markets sources regularly and apply any changes in daily work

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain professional competence in market knowledge in accordance with codes of conduct and/or organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement processes for maintaining up-to-date knowledge of relevant aspects of emissions trading markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Comply with regulatory framework unique to emissions markets

1.1 Identify domestic and international regulatory framework within which emissions reduction schemes are placed

1.2 Identify 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 scope and impact of emissions markets

2.1 Identify regulated and voluntary carbon markets and outline how they operate

2.2 Distinguish 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 motivations for their participation

2.5 Distinguish functions of primary and secondary emissions markets

2.6 Discuss auction types and processes

2.7 Describe functions, requirements and rules for registries

3. Identify types of emissions products, their characteristics and liabilities

3.1 Compare different types of emissions products and instruments traded in compliance and voluntary markets

3.2 Identify key features of compliance market products

3.3 Describe risks inherent within each product and their potential impact in given context

3.4 Describe transactional processes for each product, including acquiring, transferring and surrendering

3.5 Describe tax treatment of emissions products, including deductibility of costs where relevant

4. Apply knowledge of emissions products

4.1 Determine relevant information influencing the market

4.2 Analyse relevant information when selecting products for emissions markets transaction

4.3 Devise strategies for using emissions market products

4.4 Seek advice, guidance and specialist expertise when 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 Review relevant emissions trading markets sources regularly and apply any changes in daily work

5.2 Maintain professional competence in market knowledge in accordance with codes of conduct and/or organisational requirements

5.3 Implement processes for maintaining up-to-date knowledge of relevant aspects of emissions trading markets

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Comply with regulatory framework unique to emissions markets

1.1 Identify domestic and international regulatory framework within which emissions reduction schemes are placed

1.2 Identify 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 scope and impact of emissions markets

2.1 Identify regulated and voluntary carbon markets and outline how they operate

2.2 Distinguish 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 motivations for their participation

2.5 Distinguish functions of primary and secondary emissions markets

2.6 Discuss auction types and processes

2.7 Describe functions, requirements and rules for registries

3. Identify types of emissions products, their characteristics and liabilities

3.1 Compare different types of emissions products and instruments traded in compliance and voluntary markets

3.2 Identify key features of compliance market products

3.3 Describe risks inherent within each product and their potential impact in given context

3.4 Describe transactional processes for each product, including acquiring, transferring and surrendering

3.5 Describe tax treatment of emissions products, including deductibility of costs where relevant

4. Apply knowledge of emissions products

4.1 Determine relevant information influencing the market

4.2 Analyse relevant information when selecting products for emissions markets transaction

4.3 Devise strategies for using emissions market products

4.4 Seek advice, guidance and specialist expertise when 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 Review relevant emissions trading markets sources regularly and apply any changes in daily work

5.2 Maintain professional competence in market knowledge in accordance with codes of conduct and/or organisational requirements

5.3 Implement processes for maintaining up-to-date knowledge of relevant aspects of emissions trading markets

Evidence of the ability to:

research, analyse and update information, including regulatory changes impacting on emissions markets and operations

provide and apply specialist knowledge relating to emissions markets to daily work.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

analyse and describe types of products and their characteristics including:

types of emissions units, and their characteristics (encompassing carbon units, Australian carbon credit units and eligible international emissions units)

characteristics of emissions units including their status as personal property, and how they are typically derived from inception to the point of acquiring status as a financial product

risks associated with each type of emission unit, including rating, restrictions on their use, transfer and bankability for future use

processes for acquiring, transferring and surrendering emissions units, including compliance with the requirements of the Australian National Registry of Emissions Units

outline the operation of regulated and voluntary carbon markets including:

geopolitical context of carbon markets, including the influence of political and economic factors and corporate social responsibility

main participants in carbon markets, and their key objectives and participation behaviours as factors influencing market activity

emissions unit supply and demand factors and regulated price factors influencing market activity and prices

issue of carbon units via auction, and auction types

types of transactions in carbon markets, including transactions relating to the carbon pricing mechanism and in voluntary markets, and the function of financial markets facilitating such trading (including internationally)

potential trading strategies and their implementation in carbon markets (e.g. hedging and investment strategies)

risks associated with carbon markets, including liquidity, pricing, credit, operational and regulatory risks

carbon market transaction documentation, including documentation used for different types of counterparties and transactions, their key terms and conditions, and advantages and disadvantages

explain the regulated emissions legal environment including disclosure and compliance, covering:

domestic regulatory framework for the carbon pricing mechanism, including the role of the Clean Energy Regulator and the Australian National Registry of Emissions Units

domestic regulatory framework for the Carbon Farming Initiative, including the role of the Clean Energy Regulator and the Australian National Registry of Emissions Units

international regulatory framework for carbon trading, including the Clean Development Mechanism

relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy Amendment (Private Sector) Act, Australian National Registry of Emissions Units Act, National Greenhouse and Energy Reporting Act, Carbon Credits (Carbon Farming Initiative) Act, Clean Energy Act)

the relationship between ethical and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration and/or fees and any other conflicts of interest that may influence the adviser’s recommendation), and the application of these requirements in professional practice

relevant industry standards and codes of conduct

regulators’ guidelines, including ASIC Regulatory Guide (RG)146 requirements

dispute resolution procedures (external and internal)

outline the taxation obligations in the emissions market including:

taxation treatment of emissions units and taxation issues relating to emissions units

deductibility of costs associated with emissions units.