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:
Eligible projects include those associated with:
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:
The Clean Energy Regulator is the Australian independent statutory authority responsible for:
Emissions Reduction Fund projects must:
Read more about eligibility requirements for the ERF on the Regulator’s website.
To participate in the ERF you need to register your project with the Regulator.
Typically, you will follows these steps:
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.
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.
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.
Last updated: 3 March 2022
Content ID: 67237