$2.55 Billion program with the aim to help business reduce their emissions through the Emissions Reduction Fund.
Emissions Reduction Fund
The Emissions Reduction Fund provides positive incentives to businesses across the economy to reduce emissions. Its aim is to reduce emissions at lowest cost and contribute towards Australia’s 2020 emissions reduction target of five per cent below 2000 levels by 2020.
The Emissions Reduction Fund will operate alongside existing programs that are already working to offset Australia’s emissions growth, such as the Renewable Energy Target and energy efficiency standards on appliances, equipment and buildings.
The Emissions Reduction Fund has three elements:
- crediting emissions reductions
- purchasing emissions reductions
- safeguarding emissions reductions.
Businesses have identified a range of activities that the Emissions Reduction Fund could unlock. These include:
- upgrading commercial buildings
- improving energy efficiency of industrial facilities and houses
- reducing electricity generator emissions
- capturing landfill gas
- reducing waste coal mine gas
- reforesting and revegetating marginal lands
- improving Australia’s agricultural soils
- upgrading vehicles and improving transport logistics, and
- managing fires in savanna grasslands.
2015-16 Priority Activities
The Minister for the Environment has determined the 2015-16 priority activities for method scoping and potential development under the Emissions Reduction Fund, following consultation with Technical Working Groups, the public and the Emissions Reduction Assurance Committee.
The priorities are determined to ensure that activities offer the greatest opportunity for uptake and genuine abatement. The prioritisation is an annual process and provides a 12 month forward work plan for method scoping and development. The sectors where activities will be scoped and their feasibility tested for potential method development in 2015-16 are listed below.
Activities for scoping include reducing emissions from fertilizer use in sugar cane production, reducing emissions from sheep flock management and soil carbon sequestration.
Activities for scoping include coverage of community buildings; improvements to the energy efficiency of boilers, pumping systems, compressed air systems, and reducing emissions from air conditioning systems in industrial and commercial settings; and a technology-neutral energy efficiency sampling method.
Scoping will include an industrial process efficiency method that would reduce Scope 1 emissions of industrial process gases.
Scoping will include a transport mode shift sub-method as an extension to the existing land and sea transport method.
Activities for scoping include savanna sequestration, abatement through avoided degradation and rehabilitation of Australian woodlands and protection and restoration of mangroves for sequestration and carbon storage.
Activities for scoping include waste to energy projects that could provide incentives to avoid or destroy emissions associated with current waste disposal practices.
The Government has provided $2.55 billion to establish the Emissions Reduction Fund in the 2014-15 Budget. The full level of funding will be available to be committed under contract from the commencement of the Emissions Reduction Fund. Payment will be made as emissions reductions are verified.
The Regulator will hold auctions to purchase emissions reductions at the lowest available cost.
Auctions will be conducted with cost as the only criterion. Other project attributes such as project risk and commercial readiness will be assessed when businesses register to participate in Emissions Reduction Fund auctions.
Participants will submit a bid—specifying a price per tonne of emissions reductions—with the lowest cost projects being selected. Participants will not be able to see what other companies are bidding as bids will be ‘sealed’, or secret.
Successful participants will be paid the price that they bid (often called a ‘pay-as-bid’ auction). The Government will enter into contracts with successful bidders, which will guarantee payment for the future delivery of emissions reductions over the life of the contract.
The Regulator will publish average price information following each auction to help businesses forward plan future projects. The Regulator may also publish the benchmark price prior to the first auction. The benchmark price is the maximum price that the Government will pay for emissions reductions. Only bids below the benchmark price will be considered. The benchmark price may differ for each auction.
Businesses, community organisations, local councils, state governments and other members of the community who meet the eligibility requirements can undertake activities like these in accordance with approved emissions reduction methods under the Emissions Reduction Fund. They can then sell the resulting emissions reductions to the Clean Energy Regulator, acting on behalf of the Government.
Fifth Emissions Reduction Fund Auction Announced
The Clean Energy Regulator has announced the fifth Emissions Reduction Fund auction will be held on 5-6 April 2017. Guidelines for the fifth auction are published on the Clean Energy Regulator’s website.
Key dates are summarised in the table below.
|Information to be published||Third auction dates|
|Project registration application deadline||21 February 2017 (Midnight AEDT)|
|Auction qualification application deadline||7 Mach 2017 (Midnight AEDT)|
|Auction registration application deadline||29 March 2017 (Midnight AEDT)|
|Closing time for declaration of eligible projects||29 March 2017 (5pm AEDT)|
|Auction Window||9am 5 April 2017 to 5pm 6 April 2017 (AEST)|
|Results released, authorised bidder notified and average price per tonne of abatement published||13 April 2017|
Information on planning for an Emissions Reduction Fund auction is available here.
CER announces fifth ERF auction results
The Clean Energy Regulator has announced the results of the fifth ERF auction. The Emissions Reduction Fund has now secured 189 million tonnes of abatement through 387 contracts.
The Clean Energy Regulator has awarded new contracts for 11.25 million tonnes of abatement under 31 Carbon Abatement Contracts for a total value of $133 million.
The majority of bids at the fifth auction represented value for money, with 84.1 percent of the volume of abatement offered below the benchmark price accepted. Abatement was purchased at an average price of $11.82 per tonne. Across all auctions the average price has remained steady at $11.83.
A total of $2.2 billion has now been committed under the Emissions Reduction Fund, with more than $300 million available for future purchasing.
A summary of the fifth Emissions Reduction Fund auction results are available on Clean Energy Regulator’s auction results page.
Round 1 Recipients
43 Recipients share in $660M for projects that help business reduce their emissions. The successful contractors have committed to deliver over 47 million tonnes of abatement, with an average price of $13.95 per tonne of abatement.
|LMS Energy||Eastern Creek 2 Landfill Gas Project
Hallam Landfill Gas Project
South Cardup Landfill Gas Project
Swanbank Landfill Gas Project
|Corporate Carbon Solutions||Charon Point Carbon Project||$47,430,000|
|LMS Energy||Rochedale Landfill Gas Project
Wollert Landfill Gas Project
Wyndham Landfill Gas Project
|LMS Energy||Albury Landfill Gas Project
Awaba Landfill Gas Project
Darwin Landfill Gas Project
Ipswich Landfill Gas Project
Newcastle Landfill Gas Project
Remount Landfill Gas Project
Wyong Landfill Gas Project
|Terra Carbon||Osterley Downs Native Forest Protection Project||$20,474,527|
|EDL LFG (NSW)||Lucas Heights 2 Landfill Gas Project||$19,610,547|
|Terra Carbon||Ashwood Native Forest Protection Project||$17,449,539|
|Terra Carbon||Moquilambo Native Forest Protection Project||$14,275,551|
|Terra Carbon||Ellavale Native Forest Protection Project||$14,131,127|
|Terra Carbon||Fords Bridge Aggregation Native Forest Protection Project||$13,901,789|
|Terra Carbon||Tripodi Native Forest Protection Project||$13,299,163|
|EDL LFG (QLD) ;EDL LFG (NSW)||Browns Plains Landfill Gas Project
Grange Avenue Landfill Gas Project
Lucas Heights 2B Landfill Gas Project
Roghan Road Landfill Gas Project
|Terra Carbon||Lila Springs Native Forest Protection Project||$12,881,207|
|EDL LFG (NSW) ;EDL LFG (VIC)||Brooklyn Landfill Gas Project
Eastern Creek Landfill Gas Project
Jacks Gully Landfill Gas Project
|LMS Energy||Ballarat Landfill Gas Project
Bendigo Landfill Gas Project
Birkdale Landfill Gas Project
Mirabooka Landfill Gas Project
Mornington Landfill Gas Project
Shepparton Landfill Gas Project
Tweed Landfill Gas Project
|Terra Carbon||Dijoe Station Native Forest Protection Project||$12,239,730|
|Terra Carbon||Kergunyah Native Forest Protection Project||$11,897,550|
|Forests Alive||Forests Alive: Protection of Tasmanian Native Forest||$10,769,330|
|Terra Carbon||Bulgoo Station Native Forest Protection Project||$9,554,383|
|Landfill Gas Industries||Capture and combustion of landfill gas from Benaraby Landfill project
Capture and Combustion of landfill gas from Saltwater Creek Landfill, Maryborough, QLD
Capture and Combustion of Landfill Gas from Willawong Landfill
|Terra Carbon||Kia Ora Native Forest Protection Project||$9,232,640|
|Terra Carbon||Meadow Glen Native Forest Protection Project||$8,443,823|
|Terra Carbon||Trilby Native Forest Protection Project||$8,273,299|
|Terra Carbon||Double Gates Native Forest Protection Project||$8,244,924|
|Terra Carbon||Buckwaroon Native Forest Protection Project||$7,604,312|
|AGL Energy Services||Rockingham Landfill Gas Abatement Facility||$7,114,500|
|Terra Carbon||Glenwood Native Forest Protection Project||$6,980,803|
|Landfill Operations||Boral Deer Park Biogas to Energy Project||$6,903,269|
|Terra Carbon||Mopone Native Forest Protection Project||$6,879,024|
|Terra Carbon||Bloomfield Native Forest Protection Project||$6,745,857|
|Sunset Ranch||Sunset Ranch Native Forest Protection Project||$6,458,850|
|Terra Carbon||Nullawarra Station #2 Native Forest Protection Project||$6,451,666|
|Olkola Aboriginal Corporation||Olkola Ajin – Olkola Fire Project||$6,347,250|
|Corporate Carbon Solutions||Yaloak Estate Soil Carbon Project||$5,928,750|
|SITA-ResourceCo Alternative Fuels||Wingfield – SITA ResourceCo Alternative Fuels Diversion from Landfill Project||$5,917,730|
|Terra Carbon||Pine Ridge Native Forest Protection Project||$5,628,713|
|LMS Energy||Buderim Landfill Gas Project
Cessnock Landfill Gas Project
Copping Landfill Gas Project
Drysdale Landfill Gas Project
Maitland Landfill Gas Project
NAWMA Landfill Gas Project
Stuart Landfill Gas Project
|Terra Carbon||Bundella North Native Forest Protection Project||$5,376,135|
|Benefit Property Holdings||Urisino Regenerative Ecosystem Project||$5,370,750|
|Terra Carbon||Bundong Native Forest Protection Project||$5,323,613|
|Terra Carbon||Horse Ridges Native Forest Protection Project||$5,295,936|
|Terra Carbon||Trafalgar Native Forest Protection Project||$4,852,605|
|Sembsita Australia||SITA Elizabeth Drive Landfill Gas Capture (flaring & electricity generation) – Kemps Creek||$4,694,147|
|Terra Carbon||Noona Station Native Forest Protection Project||$4,616,850|
|Veolia Environmental Services (Australia)||Horsley Park Landfill Gas Project
Natural Recovery Systems Composting Project
Ti Tree Gas to Energy Project
Wattle Glen Landfill Gas Project
Woodlawn Bioreactor Project
|Corporate Carbon Solutions||Biomass Solutions, Waste Diversion through Alternative Waste Management at Coffs Harbour||$4,533,750|
|Sembsita Australia||Biovision Mindarie Advanced Resource Recovery Technology (ARRT) Facility||$4,425,679|
|Terra Carbon||Bogan Downs Native Forest Protection Project||$4,163,015|
|Terra Carbon||Carpenters Native Forest Protection Project||$4,125,489|
|Sembsita Australia||Kemps Creek SAWT Advanced Resource Recovery Technology (ARRT) Facility||$3,979,196|
|Dominic Leo Hollis||Glenariff Native Forest Protection Project
Runnymede Regeneration Project
|Terra Carbon||Argyle Native Forest Protection Project||$3,764,547|
|Terra Carbon||Killala Native Forest Protection Project||$3,702,567|
|Anne-Marie Schmitt;Jean Luc Schmitt||Mulgaroon Forest Regeneration Project||$3,669,827|
|Terra Carbon||Glenrose Native Forest Protection Project||$3,609,800|
|Terra Carbon||Bedooba Native Forest Protection Project||$3,472,225|
|Domenico Grieco||Oakvale Native Forest Protection Project||$3,375,412|
|Terra Carbon||Nullawarra Station Native Forest Protection Project||$3,208,054|
|Blue-Leafed Mallee Limited||Blue-Leafed Mallee Project A||$3,191,760|
|Terra Carbon||Pattison Native Forest Protection Project||$3,172,467|
|Corporate Carbon Solutions||SMRC Waste Composting Facility||$3,069,000|
|John Cliveden Bull||Kinchela Regeneration Project||$3,020,175|
|North Western Holdings||Lenroy Regeneration Project||$3,013,200|
|Michael James Marshman;Tanya Joleen Marshman||Mullagalah Regeneration Project||$2,957,400|
|Terra Carbon||Etiwanda Native Forest Protection Project||$2,872,737|
|Terra Carbon||Ryandale Native Forest Protection Project||$2,851,310|
|Landfill Gas Industries||Cedars Road Landfill Gas Extraction and Combustion
Whylandra Waste and Recycling Centre Landfill Gas Project
|Terra Carbon||Glenogie Native Forest Protection Project||$2,757,231|
|Anthony Brett Bailey||Inkerman Downs Regeneration Project||$2,750,047|
|Terra Carbon||Claymore Native Forest Protection Project||$2,618,276|
|AGL Energy Services||Glenorchy Landfill Gas Abatement Facility||$2,497,050|
|Terra Carbon||Dunsandle Native Forest Protection Project||$2,488,443|
|Terra Carbon||Landsdowne Native Forest Protection Project||$2,334,798|
|Rona Magdalene Davis||Yandaroo Regeneration Project||$2,301,750|
|Corporate Carbon Solutions||Scrubbers Bedden Carbon Project||$2,232,000|
|Lindsay John Newton||Mount Oxley Native Forest Protection Project||$2,215,260|
|Automotive Holdings Group Limited||AHG Land Transport Emissions Reduction||$2,197,167|
|Terra Carbon||Lachlan Downs Native Forest Protection Project||$2,043,968|
|Lindsay John Bottom||Galambo Regeneration Project||$2,015,775|
|Colm James Dempsey||Byrock Station Regrowth Project||$2,007,503|
|AGL Energy Services||Woy Woy Landfill Gas Abatement Facility||$1,813,500|
|Corporate Carbon Solutions||Yaloak Estate Carbon Plantings #1 Project||$1,743,750|
|Corporate Carbon Solutions||Yaloak Estate Environmental Plantings #1 Project||$1,743,750|
|Terra Carbon||Glen Hope Native Forest Protection Project||$1,685,830|
|Michael Bruce Fisher;Michaela Mary Fisher||Kilberoo Regeneration Project||$1,685,453|
|Kia-Ora Piggery||Kia Ora Piggery Methane Capture and Destruction Project||$1,674,000|
|Sembsita Australia||Cairns Advanced Resource Recovery Technology (ARRT) Facility||$1,665,797|
|Kylie Michelle Baty;Michael Alexander Baty||Muella Native Forest Protection Project||$1,595,629|
|Carbon Conscious Limited||Carbon Conscious Carbon Capture Project 1||$1,536,425|
|Corporate Carbon Solutions||Stanley Farms Mallee Plantings #2 Project||$1,395,000|
|AGL Energy Services||Hobart McRobies Gully Landfill Gas Abatement Facility||$1,241,550|
|Sembsita Australia||Port Stephens Waste Management Composting Facility||$1,199,086|
|Enviropower Investments as Trustee for the JB & KB Cameron Superannuation Fund||Enviropower Investments Goondiwindi Piggery Project||$1,143,900|
|Corporate Carbon Solutions||Jinglemoney Farm Carbon Project||$1,046,250|
|Corporate Carbon Solutions||Yaloak Estate Environmental Plantings #2 Project||$1,046,250|
|City of Armadale||City of Armadale Landfill Gas Flaring Project||$948,684|
|AGL Energy Services||Kincumber Landfill Gas Abatement Facility||$906,750|
|Travis John Bambrick;Lindsay Emma Bambrick||Lindermans Regeneration Project||$871,875|
|Carbon Estate||Carbon Estate – Creating a Better Climate
Carbon Estate – Creating a Better Climate Project – Stage 2
|Blantyre Farms||Blantyre Methane Digestion Project||$683,550|
|Clarence Valley Council||Grafton Regional Landfill landfill gas capture and combustion||$627,750|
|AGL Energy Services||Gosnells Landfill Gas Abatement Facility||$571,950|
|Windridge Farms||Wonga/Templemore Methane Digestion Ponds||$540,939|
|Pormpuraaw Aboriginal Shire Council||Raak Nguunge||$418,500|
|Corporate Carbon Solutions||Muckleford Farm Carbon Project||$348,750|
|AGL Energy Services||Wagga Landfill Gas Abatement Facility||$327,825|
|Ralvimay Enterprises||Oakleigh Native Forest Protection Project||$167,400|