In November 2013, the department noted in a review of the programs that:

      ANAO Report No.11 2014–15 The Award of Grants under the Clean Technology Program 95 five per cent reduction for an applicant that consumes 1 168 000 kWh of electricity per annum. Total carbon savings over the life of the conservation measure

4.15 As

previously noted, indicator two as identified in the customer guidelines was generated using the calculator. Advice provided to departmental staff by the program management area of the department in February 2012 noted that total carbon savings were included as a second indicator because: An absolute measure means that large manufacturers won’t be penalised for making small percentage improvements, as these small improvements can still yield large carbon savings.

4.16 In

October 2014, the department provided further advice to ANAO that the two indicators measured the short‐term and long‐term extent of the reduction in carbon emissions intensity. Specifically: Indicator 1 provided a relative measure that demonstrated the immediate impact of a project compared to the customerʹs existing manufacturing processes. This was done by measuring the percentage reduction in emissions intensity in the first year following project completion. Indicator 2 provided a more long‐term representation of the impacts of the reduction in emissions intensity to be delivered by the project. This indicator was based on Indicator 1, but further incorporated the effective life of the emissions reduction measure and the manufacturerʹs expected production levels during this period e.g. the next 10 years. This long‐term view was achieved by representing the reduction in emissions intensity in terms of the carbon savings over the life of the conservation measure. Where a project involved electricity savings, Indicator 2 also accounted for the impact of varying state and territory electricity emissions factors on the emissions intensity reduction to be delivered by the project. This provided a more complete picture of the emissions intensity reductions associated with each project at a national level. Projects that reduced grid electricity consumption from emissions‐intensive grids e.g. Victoria, with electricity generated from brown coal were recognised as delivering higher reductions in emissions intensity.

4.17 In

this respect, the reduction in carbon emissions intensity indicator reflected the short‐term impacts of the project generally 12 months, while the total carbon savings over the life of the conservation measure measured the longer ‐term impacts from 10 years to 100 years. By combining the two