Government continues to support regional areas through Emissions Reduction Fund auctions
3 April 2020
The Liberal National Government is continuing to purchase emissions reductions from Australian businesses, supporting jobs and cash flow during challenging economic times.
Through the tenth Emissions Reduction Fund (ERF) auction, the Government purchased 1.71 million tonnes of carbon abatement for $27.6 million.
ERF projects delivered 14.8 million tonnes of abatement in 2019 and this is expected to increase to more than 16 million tonnes in 2020.
The auction purchased emissions reductions in eleven projects across five states with project activity including vegetation regeneration, forestry, soil carbon, landfill gas, and energy efficiency.
In a welcome boost for the timber industry, which has been particularly hard hit by this summer’s devastating bushfires, the auction supported four new plantation forestry projects in New South Wales, Victoria, Western Australia and South Australia. The Government continues to explore ways to boost the timber industry’s participation in the carbon market.
Despite the current economic conditions, the volume of abatement purchased at this auction was substantially higher than the previous auction. This is due in part to the successful pilot of a new optional delivery contract.
Optional delivery contracts reduce project investment risk for sellers. Sellers can choose whether to deliver abatement to the Commonwealth at the contracted price, or sell some or all of their ACCUs elsewhere.
Minister for Energy and Emissions Reduction Angus Taylor said the successful tenth auction is another example of the real and meaningful action the Liberal National Government is taking to reduce emissions.
“These auction results show that the Emissions Reduction Fund is continuing to support practical action to reduce emissions right across the economy while improving productivity and providing social, economic and environmental benefits,” said Minister Taylor.
“Importantly, the ERF continues to support those in regional areas working hard to generate carbon offsets, and having a positive impact on global emissions.”
The Government will continue to work closely with participants and industry to explore new and innovative ways to reduce emissions and secure abatement through the Government’s $2 billion Climate Solutions Fund.
Minister Taylor’s office 02 6277 7120