Climate Solutions Fund


The Climate Solutions Fund will build on the success of the Emissions Reduction Fund (ERF) which has contracted 193 million tonnes in emission reductions.

The Minister for the Environment, the Hon Melissa Price MP, said that Climate Solutions Fund will ensure the ERF delivers a further 103 million tonnes in emission reductions to 2030. This will make a key contribution to us meeting our 26% emissions reduction target under the Paris agreement.



On 25 February 2019, the Australian Government announced the Climate Solutions Package, a $3.5 billion investment to deliver on Australia’s 2030 Paris climate commitments. The Government’s plan builds on existing policies and success in meeting Australia’s Kyoto commitments by:

  • Providing a $2 billion Climate Solutions Fund to reduce greenhouse gases across the economy through the existing Emissions Reduction Fund, giving farmers, small businesses and Indigenous communities the chance to improve the environment and benefit from new revenue opportunities.
  • Continued support for the transition to reliable renewables underway in the National Electricity Market through funding for the Battery of the Nation Project in Tasmania and Marinus Link. These projects will boost pumped hydro storage potential in Tasmania and allow more clean energy to be exported to the mainland, while maintaining a reliable electricity supply.
  • Helping households and businesses improve energy efficiency and lower energy bills.
  • Developing a National Electric Vehicle Strategy to ensure a planned and managed transition to new vehicle technology and infrastructure so all Australians can reap the benefits.
  • Green and clean local environments by supporting local communities.

The Australian Government is committed to taking action on climate change while growing the economy and keeping energy prices down.

Climate change is a global issue that requires a global solution. The Government is committed to Australia playing its part in that global solution to reduce emissions.



The Climate Solutions Fund gives these Australians the incentive to adopt smarter practices and technologies to reduce greenhouse gases, and at the same time earn additional revenue.

  • Remote Indigenous communities will be supported to reduce emissions by using traditional knowledge to manage fires in northern Australia and creating employment for Indigenous people living on Country.
  • Small businesses will benefit from support to replace lighting, air conditioning and refrigeration systems to help reduce energy costs.
  • Farmers will be supported to revegetate degraded land, improving water quality, reducing erosion and salinity, and drought proofing farms.
  • Local communities will benefit from support to reduce emissions from waste and increase recycling rates.



Up to $2B will be available through the Climate Solutions Fund to support projects that will bring down Australia’s emissions.


How does the Climate Solutions Fund work?

  • Project participants join the scheme by registering a project, under an approved Emissions Reduction Fund method, with the Clean Energy Regulator.
  • Once a project is registered, participants can bid to secure a contract with the Australian Government by participating in an auction.
  • Participants run their project according to the method they have chosen to use, report on it and ensure it is audited when required.
  • The projects then receive Australian Carbon Credit Units for the emissions reductions they have achieved. These can be sold to the Australian Government under contract, sold to the secondary market, or used to offset emissions from other sources.



To be announced.


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