Emissions Reduction Fund

$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:

  1. crediting emissions reductions
  2. purchasing emissions reductions
  3. safeguarding emissions reductions.


Eligible Activities

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.

Energy Efficiency
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.

Industrial Process
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.


Eligible Applicants

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 publishedThird auction dates
Project registration application deadline21 February 2017 (Midnight AEDT)
Auction qualification application deadline7 Mach 2017 (Midnight AEDT)
Auction registration application deadline29 March 2017 (Midnight AEDT)
Closing time for declaration of eligible projects29 March 2017 (5pm AEDT)
Auction Window9am 5 April 2017 to 5pm 6 April 2017 (AEST)
Results released, authorised bidder notified and average price per tonne of abatement published13 April 2017

Information on planning for an Emissions Reduction Fund auction is available here.


CER announces eighth ERF auction results

The Clean Energy Regulator has announced the results of the eighth ERF auction.

At this auction, the Regulator awarded 34 carbon abatement contracts to deliver 3.3 million tonnes of abatement, at an average price of $13.87 per tonne. Newly contracted activities are spread across agriculture, vegetation, savanna fire management and waste projects. The average price across all seven auctions is now $12 per tonne.

Over $2.3 billion has now been committed under the ERF, with more than $220 million available for future purchasing.

The Emissions Reduction Fund continues to contribute to the government’s emissions reduction targets, with over 37 million tonnes of abatement already delivered.

ERF auctions results

Eighth auctionCumulative total
Abatement purchased3.3 million tonnes193 million tonnes
Average price per tonne$13.82$12
Total committed$45 million$2.29 billion
Total contracts34457
Total projects contracted36477

More information on the results of the eighth ERF auction are available on the Regulator’s website.


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.


RecipientProject(s)Value approx.
LMS EnergyEastern Creek 2 Landfill Gas Project
Hallam Landfill Gas Project
South Cardup Landfill Gas Project
Swanbank Landfill Gas Project
Corporate Carbon SolutionsCharon Point Carbon Project$47,430,000
LMS EnergyRochedale Landfill Gas Project
Wollert Landfill Gas Project
Wyndham Landfill Gas Project
LMS EnergyAlbury 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 CarbonOsterley Downs Native Forest Protection Project$20,474,527
EDL LFG (NSW)Lucas Heights 2 Landfill Gas Project$19,610,547
Terra CarbonAshwood Native Forest Protection Project$17,449,539
Terra CarbonMoquilambo Native Forest Protection Project$14,275,551
Terra CarbonEllavale Native Forest Protection Project$14,131,127
Terra CarbonFords Bridge Aggregation Native Forest Protection Project$13,901,789
Terra CarbonTripodi 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 CarbonLila 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 EnergyBallarat 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 CarbonDijoe Station Native Forest Protection Project$12,239,730
Terra CarbonKergunyah Native Forest Protection Project$11,897,550
Forests AliveForests Alive: Protection of Tasmanian Native Forest$10,769,330
Terra CarbonBulgoo Station Native Forest Protection Project$9,554,383
Landfill Gas IndustriesCapture 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 CarbonKia Ora Native Forest Protection Project$9,232,640
Terra CarbonMeadow Glen Native Forest Protection Project$8,443,823
Terra CarbonTrilby Native Forest Protection Project$8,273,299
Terra CarbonDouble Gates Native Forest Protection Project$8,244,924
Terra CarbonBuckwaroon Native Forest Protection Project$7,604,312
AGL Energy ServicesRockingham Landfill Gas Abatement Facility$7,114,500
Terra CarbonGlenwood Native Forest Protection Project$6,980,803
Landfill OperationsBoral Deer Park Biogas to Energy Project$6,903,269
Terra CarbonMopone Native Forest Protection Project$6,879,024
Terra CarbonBloomfield Native Forest Protection Project$6,745,857
Sunset RanchSunset Ranch Native Forest Protection Project$6,458,850
Terra CarbonNullawarra Station #2 Native Forest Protection Project$6,451,666
Olkola Aboriginal CorporationOlkola Ajin – Olkola Fire Project$6,347,250
Corporate Carbon SolutionsYaloak Estate Soil Carbon Project$5,928,750
SITA-ResourceCo Alternative FuelsWingfield – SITA ResourceCo Alternative Fuels Diversion from Landfill Project$5,917,730
Terra CarbonPine Ridge Native Forest Protection Project$5,628,713
LMS EnergyBuderim 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 CarbonBundella North Native Forest Protection Project$5,376,135
Benefit Property HoldingsUrisino Regenerative Ecosystem Project$5,370,750
Terra CarbonBundong Native Forest Protection Project$5,323,613
Terra CarbonHorse Ridges Native Forest Protection Project$5,295,936
Terra CarbonTrafalgar Native Forest Protection Project$4,852,605
Sembsita AustraliaSITA Elizabeth Drive Landfill Gas Capture (flaring & electricity generation) – Kemps Creek$4,694,147
Terra CarbonNoona 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 SolutionsBiomass Solutions, Waste Diversion through Alternative Waste Management at Coffs Harbour$4,533,750
Sembsita AustraliaBiovision Mindarie Advanced Resource Recovery Technology (ARRT) Facility$4,425,679
Terra CarbonBogan Downs Native Forest Protection Project$4,163,015
Terra CarbonCarpenters Native Forest Protection Project$4,125,489
Sembsita AustraliaKemps Creek SAWT Advanced Resource Recovery Technology (ARRT) Facility$3,979,196
Dominic Leo HollisGlenariff Native Forest Protection Project
Runnymede Regeneration Project
Terra CarbonArgyle Native Forest Protection Project$3,764,547
Terra CarbonKillala Native Forest Protection Project$3,702,567
Anne-Marie Schmitt;Jean Luc SchmittMulgaroon Forest Regeneration Project$3,669,827
Terra CarbonGlenrose Native Forest Protection Project$3,609,800
Terra CarbonBedooba Native Forest Protection Project$3,472,225
Domenico GriecoOakvale Native Forest Protection Project$3,375,412
Terra CarbonNullawarra Station Native Forest Protection Project$3,208,054
Blue-Leafed Mallee LimitedBlue-Leafed Mallee Project A$3,191,760
Terra CarbonPattison Native Forest Protection Project$3,172,467
Corporate Carbon SolutionsSMRC Waste Composting Facility$3,069,000
John Cliveden BullKinchela Regeneration Project$3,020,175
North Western HoldingsLenroy Regeneration Project$3,013,200
Michael James Marshman;Tanya Joleen MarshmanMullagalah Regeneration Project$2,957,400
Terra CarbonEtiwanda Native Forest Protection Project$2,872,737
Terra CarbonRyandale Native Forest Protection Project$2,851,310
Landfill Gas IndustriesCedars Road Landfill Gas Extraction and Combustion
Whylandra Waste and Recycling Centre Landfill Gas Project
Terra CarbonGlenogie Native Forest Protection Project$2,757,231
Anthony Brett BaileyInkerman Downs Regeneration Project$2,750,047
Terra CarbonClaymore Native Forest Protection Project$2,618,276
AGL Energy ServicesGlenorchy Landfill Gas Abatement Facility$2,497,050
Terra CarbonDunsandle Native Forest Protection Project$2,488,443
Terra CarbonLandsdowne Native Forest Protection Project$2,334,798
Rona Magdalene DavisYandaroo Regeneration Project$2,301,750
Corporate Carbon SolutionsScrubbers Bedden Carbon Project$2,232,000
Lindsay John NewtonMount Oxley Native Forest Protection Project$2,215,260
Automotive Holdings Group LimitedAHG Land Transport Emissions Reduction$2,197,167
Terra CarbonLachlan Downs Native Forest Protection Project$2,043,968
Lindsay John BottomGalambo Regeneration Project$2,015,775
Colm James DempseyByrock Station Regrowth Project$2,007,503
AGL Energy ServicesWoy Woy Landfill Gas Abatement Facility$1,813,500
Corporate Carbon SolutionsYaloak Estate Carbon Plantings #1 Project$1,743,750
Corporate Carbon SolutionsYaloak Estate Environmental Plantings #1 Project$1,743,750
Terra CarbonGlen Hope Native Forest Protection Project$1,685,830
Michael Bruce Fisher;Michaela Mary FisherKilberoo Regeneration Project$1,685,453
Kia-Ora PiggeryKia Ora Piggery Methane Capture and Destruction Project$1,674,000
Sembsita AustraliaCairns Advanced Resource Recovery Technology (ARRT) Facility$1,665,797
Kylie Michelle Baty;Michael Alexander BatyMuella Native Forest Protection Project$1,595,629
Carbon Conscious LimitedCarbon Conscious Carbon Capture Project 1$1,536,425
Corporate Carbon SolutionsStanley Farms Mallee Plantings #2 Project$1,395,000
AGL Energy ServicesHobart McRobies Gully Landfill Gas Abatement Facility$1,241,550
Sembsita AustraliaPort Stephens Waste Management Composting Facility$1,199,086
Enviropower Investments as Trustee for the JB & KB Cameron Superannuation FundEnviropower Investments Goondiwindi Piggery Project$1,143,900
Corporate Carbon SolutionsJinglemoney Farm Carbon Project$1,046,250
Corporate Carbon SolutionsYaloak Estate Environmental Plantings #2 Project$1,046,250
City of ArmadaleCity of Armadale Landfill Gas Flaring Project$948,684
AGL Energy ServicesKincumber Landfill Gas Abatement Facility$906,750
Travis John Bambrick;Lindsay Emma BambrickLindermans Regeneration Project$871,875
Carbon EstateCarbon Estate – Creating a Better Climate
Carbon Estate – Creating a Better Climate Project – Stage 2
Blantyre FarmsBlantyre Methane Digestion Project$683,550
Clarence Valley CouncilGrafton Regional Landfill landfill gas capture and combustion$627,750
AGL Energy ServicesGosnells Landfill Gas Abatement Facility$571,950
Windridge FarmsWonga/Templemore Methane Digestion Ponds$540,939
Pormpuraaw Aboriginal Shire CouncilRaak Nguunge$418,500
Corporate Carbon SolutionsMuckleford Farm Carbon Project$348,750
AGL Energy ServicesWagga Landfill Gas Abatement Facility$327,825
Ralvimay EnterprisesOakleigh Native Forest Protection Project$167,400


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