Regulator to Pursue Firm That Gave Unauthorised Access to Carbon Credits Database

The regulator allege Emerging Energy allowed unauthorised access to its Australian National Registry of Emissions Units (ANREU) account.

Solar panels can be seen on a roof top in Albany, Western Australia, on Aug. 13. 2023. Susan Mortimer/The Epoch Times

The Federal Court of Australia has given permission for the Clean Energy Regulator (CER) to commence legal action against a renewables company in voluntary liquidation.

Emerging Energy Solutions Group was accused of breaching regulations around accessing emissions data in 2024, but the regulator’s initial claim against the company’s former director Shamsuddin Shaikh was dismissed in January 2025 following a negotiated settlement between the two parties.

With the company now in liquidation, court action against the company itself would typically be paused.

However, on Jan. 23, the Federal Court ruled it was in the public interest for the CER to enforce environmental compliance.

Emerging Energy Solutions Group did not build or operate renewable energy projects.

Instead, the company acted as an administrative middle-man, primarily handling and trading government renewable energy certificates generated by rooftop solar installations.

Renewable energy certificates are tradable market-based instruments that certify the generation of one megawatt-hour of electricity from renewable sources, and are issued as either Small-scale Technology Certificates or Large-scale Generation Certificates.

They work along similar lines as carbon credits, though they focus on the generation of renewable energy rather than emissions reduction.

According to analysts, the value of Australia’s renewable energy certificate market is estimated at around US$3.8 billion (A$5.5 billion).

The regulator has alleged Emerging Energy allowed unauthorised access to the Australian National Registry of Emissions Units (ANREU) account—including sharing login details—in breach of the Australian National Registry of Emissions Units Act 2011.

The ANREU is a secure electronic system that tracks Australian carbon credit units and renewable energy certificates.

The court heard an authorised user of the system had been on leave for mental health issues and had given power of attorney for another staff member to access their account.

However, the CER argued the company was obliged to report these events and failed to do so.

Under current laws, the sharing of usernames and passwords or uncontrolled access to secure carbon or emissions registries is prohibited to prevent non-compliance and fraud.

According to the regulator, any misuse is considered “extremely serious” due to risk of compromise.

A company may appoint as many people as required to hold accounts, but they must first be green-lit to do so.

Breaching rules around accessing the ANREU can typically result in penalties of up to 10,000 penalty units, valued at over $300 each.

Despite the case continuing against Emerging Energy in the court, the company will not be an active participant in proceedings due to its liquidation and earlier dismissal of proceedings against Shaikh.

Justice Christopher Horan emphasised that the regulator must provide protections for the company’s liquidators, including an undertaking not to pursue pecuniary penalties without further court approval and to indemnify liquidators against potential legal costs.

“Despite my initial reservations, I have concluded that it is appropriate to grant leave to the regulator to continue the proceedings against Emerging Energy,” he said.

“The position will be similar in some respects to circumstances in which a respondent does not appear to defend proceedings brought against it.

“The court will still be able to determine the issues on the pleadings, after having regard to any evidence and considering the submissions made by the regulator.”

The case will be heard at a later date.