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Methods for the Emissions Reduction Fund

Under the Emissions Reduction Fund (ERF) the rules for eligible activities are set out in methodology determinations (methods).

The methods ensure the emission reductions are real and in addition to business as usual operations.

To register your project and be credited for emissions reductions by the Clean Energy Regulator your project must follow one of the finalised methods.

Finalised methods

These are the current Emissions Reduction Fund methods available.

Agriculture

Carbon capture and storage

Energy efficiency

Facilities

Mining, oil and gas

Transport

Vegetation management

Waste and wastewater

New method priorities

See current Emissions Reduction Fund method priorities on the Clean Energy Regulator website

Closed methods

See closed Emissions Reduction Fund methods.

How we develop methods

The method development process involves:

Prioritising new methods

The Minister decides which activities to prioritise for new method development based on these criteria:

  • the potential uptake of the method and the likely volume of reduced emissions
  • whether the volume of emissions reduced can be estimated at an acceptable cost and to a reasonable degree of certainty
  • whether it could have an adverse impact on society, the environment or the economy
  • whether it could be better supported by other government measures
  • alignment with broader government priorities

Nominating method priorities

Each year, you can nominate ideas for the next round of ERF method priorities. In your submission you should provide information against each of the criteria above.

Our department assesses nominations in consultation with:

  • the Clean Energy Regulator
  • the Emissions Reduction Assurance Committee
  • the Ministerial Reference Panel for the Low Emissions Technology Statement (where relevant)

The ERF method nomination process aligns with the annual Low Emissions Technology Statement development.

The Minister announces ERF method priorities in the last quarter of the calendar year.

Developing methods

Once prioritised, the Clean Energy Regulator develops methods in collaboration with industry, potential end-users, scientists and technical experts and the Emissions Reduction Assurance Committee.

The Emissions Reduction Assurance Committee releases all methods in draft for public consultation to:

  • ensure they are fit for purpose
  • assist the Committee assess whether the method meets the offsets integrity standards in the Carbon Credits (Carbon Farming Initiative) Act 2011
  • identify whether projects are likely to cause any adverse social, environmental or economic impacts

Our department publishes the consultations on our Consultation hub. See current and previous consultations on methods.

Approving methods

The Minister approves methods. The Emissions Reduction Assurance Committee advises the Minister about whether a draft method meets the Offsets Integrity Standards. The Minister cannot approve a method if the Committee advises it does not meet the Offsets Integrity Standards.

Reviewing methods

The Emissions Reduction Assurance Committee is responsible for reviewing ERF methods. This review process includes public consultation on:

  • crediting period extensions
  • ensuring methods continue to meet the Standards

The Regulator supports the Committee during this process.

Read more

Connect with us

Contact us

Email emissions-reduction@industry.gov.au

Last updated: 19 April 2022

Content ID: 67238