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- Policies and initiatives
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- Applying to export rough diamonds
- Applying to export uranium and controlled ores
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- Regulating the Ranger Uranium Mine
- Taxes and royalties on minerals and petroleum
Measurement
Trade
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Business support
- Funding and incentives
Emissions reduction
Industry innovation and science
- Australian Square Kilometre Array Fellowships Programme
- Business Research and Innovation Initiative
- Business-research collaboration
- Collaborating with Asia-Pacific on science, research and innovation
- Collaborating with China on science and research
- Collaborating with India on science and research
- Cooperative research centres
- Enabling international space investment
- Industry 4.0
- Inspiring Australia: Science engagement in Australia
- International research collaboration
- Moon to Mars: opportunities for Australian businesses
- Prime Minister's Prizes for Science
- Research and Development Tax Incentive
- Supporting advanced manufacturing
- Supporting business and innovation
- Supporting space infrastructure growth
- Transitioning Australia’s automotive manufacturing industry
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- Anti-Dumping Review Panel
- Australian Radioactive Waste Agency
- Australian SKA Office
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- Critical Minerals Facilitation Office
- National Measurement Institute
- Office of Innovation and Science Australia
- Office of Northern Australia
- Office of the Chief Economist
- Office of the Chief Scientist
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Reporting and accountability
- Annual report
- Assurance and Audit Committee
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- Grants reporting
- Information Publication Scheme
- Our contracts
- Privacy impact assessments
- Public interest disclosure
- Senate Order 15: portfolio appointments and vacancies
Our online presence
Contact
- Publications
- News
- Policies and initiatives
Emissions reduction
Industry innovation and science
- Artificial intelligence
- Australian Radioactive Waste Agency
- Australian Space Agency
- Boosting innovation and science
- Co-hosting the Square Kilometre Array
- Increasing international collaboration
- Industry growth centres
- Industry Innovation and Science Australia
- National Measurement Institute
- Optical astronomy in Australia
- Participating in the digital economy
- Promoting innovation precincts
- Science in our department
- Science, technology, engineering and mathematics (STEM)
Energy
Resources
Northern Australia
Trade
Business support
Measurement services
Government to government services
- Regulations and standards
Emissions reduction
Energy
Resources
- Applying to export rough diamonds
- Applying to export uranium and controlled ores
- Offshore mineral exploration and mining
- Offshore oil and gas exploration and development
- Offshore petroleum exploration acreage release process
- Regulating offshore oil and gas in Australian Commonwealth waters
- Regulating the Ranger Uranium Mine
- Taxes and royalties on minerals and petroleum
Measurement
Trade
Space industry
Building industry
Business support
- Funding and incentives
Emissions reduction
Industry innovation and science
- Australian Square Kilometre Array Fellowships Programme
- Business Research and Innovation Initiative
- Business-research collaboration
- Collaborating with Asia-Pacific on science, research and innovation
- Collaborating with China on science and research
- Collaborating with India on science and research
- Cooperative research centres
- Enabling international space investment
- Industry 4.0
- Inspiring Australia: Science engagement in Australia
- International research collaboration
- Moon to Mars: opportunities for Australian businesses
- Prime Minister's Prizes for Science
- Research and Development Tax Incentive
- Supporting advanced manufacturing
- Supporting business and innovation
- Supporting space infrastructure growth
- Transitioning Australia’s automotive manufacturing industry
- Venture capital
Resources
- About us
COVID-19
Jobs
Who we are
- Our Ministers
- Our Executive team
- Organisation chart
- Our portfolio agencies
- Overseas engagement
- Anti-Dumping Commission
- Anti-Dumping Review Panel
- Australian Radioactive Waste Agency
- Australian SKA Office
- Australian Space Agency
- Critical Minerals Facilitation Office
- National Measurement Institute
- Office of Innovation and Science Australia
- Office of Northern Australia
- Office of the Chief Economist
- Office of the Chief Scientist
Who we work with
Reporting and accountability
- Annual report
- Assurance and Audit Committee
- Budget statements
- Campaign Certification Statements
- Continuing Order of the Senate
- Corporate plan
- Deregulation agenda
- Freedom of information
- Gifts and benefits register
- Grants reporting
- Information Publication Scheme
- Our contracts
- Privacy impact assessments
- Public interest disclosure
- Senate Order 15: portfolio appointments and vacancies
Our online presence
Contact
- Publications
- News
- Home
- Funding and incentives
- Emissions reduction
- Emissions Reduction Fund
On this page
Emissions Reduction Fund
The Emissions Reduction Fund (ERF) incentivises Australian businesses to cut the amount of greenhouse gases they create and to undertake activities that store carbon.
This can be through projects involving:
- new technology
- upgrading equipment
- changing business practices to improve productivity or energy use
- changing the way vegetation is managed to store more carbon
Eligible projects include those associated with:
- vegetation management
- agriculture
- energy consumption
- waste
- transport
- coal and gas production
- industrial processes
Participants can earn Australian Carbon Credit Units (ACCUs) for every tonne of emissions reduced or stored through a project. Businesses can sell ACCUs to generate income, to the Australian government through an auction, and/or to other businesses.
The Carbon Credits (Carbon Farming Initiative) Act 2011 established the ERF in 2015.
Our department is responsible for:
- ERF policy development
- the legislation
- oversight of the ERF, including advising the Minister on making the technical rules (methods)
The Clean Energy Regulator is the Australian independent statutory authority responsible for:
- developing the technical rules (methods)
- administering the ERF
- making emissions reduction purchases on behalf of the Government
Eligibility
Emissions Reduction Fund projects must:
- be new
- go beyond business-as-usual activities
- not be required by law
- not be receiving financial support from specified government programs, such as the New South Wales and Victorian energy efficiency schemes
- follow an approved method, which sets out the rules for running the project and estimating emissions reductions
- not be an excluded activity listed in the Carbon Credits (Carbon Farming Initiative) Regulations 2011 under regulation 3.36 in Division 3.12
Read more about eligibility requirements for the ERF on the Regulator’s website.
Process for participating in the ERF
To participate in the ERF you need to register your project with the Regulator.
Typically, you will follows these steps:
- You register yourself and your project with the Regulator to join the ERF
- You secure a contract with the Regulator by bidding at an auction
- You run your project and provide project reporting and auditing when scheduled with the Regulator
- You claim ACCUs for your project's emissions reductions and can be paid for any ACCUs you sell
It is not necessary to secure a contract with the Regulator to participate in the ERF. A business can register its project and commence earning ACCUs without bidding at an auction, or decide to start their projects and participate in an auction later.
Methods
Methodology determinations are the rules for estimating emissions reductions to ensure they are genuine and additional to business-as-usual operations.
The Clean Energy Regulator develops these methods in consultation with industry, potential end-users, scientists and technical experts and the Emissions Reduction Assurance Committee. The Committee assesses whether methods comply with the offsets integrity standards set out in the legislation.
Read which methods are available under the ERF and how they are developed
Aggregation agreements
An aggregated project under the ERF comprises multiple emission sources and project sites, potentially owned by multiple people. An aggregator brings together these sources into one project.
An aggregation agreement documents the rights and responsibilities of all participants and is between the project owner and the site owners. It is a commercial contract between private parties and not with the government. You should obtain independent legal and financial advice to see if participating in an aggregated project is for you.
Read about aggregation on the Regulator’s website.
Read more
- The ERF is enabled by the Carbon Credits (Carbon Farming Initiative) Act 2011 which also enables the 2015 Rule and 2011 Regulations.
- View all finalised ERF methods
- Read the 2014 Emissions Reduction Fund White paper
- Read about Australia’s domestic actions for climate change
Connect with us
- Subscribe to updates about the ERF
- Read emissions reduction news
Contact us
Email emissions-reduction@industry.gov.au
See also
- The Safeguard Mechanism provides a framework to limit emissions from Australia’s largest emitters
- The Renewable Energy Target scheme encourages the additional generation of electricity from renewable sources
- The National Greenhouse and Energy Reporting scheme is the single national framework for Australia’s energy and emissions reporting
Last updated: 2 February 2021
Content ID: 67237