Emissions Reduction Fund
The Emissions Reduction Fund allows eligible CFI projects the opportunity to access long term contracts to deliver abatement to the Australian Government.
The Emissions Reduction Fund (ERF) is the Australian Government's mechanism for purchasing carbon abatement, in the form Australian Carbon Credit Units (ACCUs), from CFI projects. The ERF represents a $2.55 billion dollar opportunity for projects that avoid emissions or sequester carbon. The ERF purchases genuine emissions reductions through a reverse auction and offers business real incentives to avoid carbon emissions and create carbon sinks.
The ERF will credit 'new' emissions reduction activities that deliver genuine abatement as measured by an approved methodology. In order to be considered 'new' a project must not be implemented before it is registered with the Clean Energy Regulator (CER). However, under some methodologies new projects can include plant expansions or upgrades.
Participation in the ERF will be through a 'menu' of approved ERF methods designed for broad application to encourage business participation. There are over thirty methods available for project participants, ranging from sequestering carbon in soils in grazing systems to improving industrial electricity and fuel efficiency. A full listing of these methods can be found at the Department of Environment's website here.
Corporate Carbon is the registered participant on over thirty ERF projects, covering the following methods:
sequestering carbon in soils in grazing systems
industrial electricity and fuel efficiency
land and sea transport
human-induced regeneration of a permanent even-aged native forest
reforestation by environmental or mallee plantings – FullCAM
reforestation and afforestation
savanna fire management
alternative waste treatment.
Corporate Carbon facilitates ERF participation by offering solutions as a large-scale aggregator of carbon projects. In this role, we work with project owners and developers to identify project opportunities of all sizes from large to small, win ERF contracts and manage the resultant contractual delivery obligations. Under this approach, Corporate Carbon is the contracting party with the Clean Energy Regulator and manages reporting and compliance obligations, including internalising the risk of project delivery (contracted ACCUs against the agreed delivery schedule).
This innovative approach is based on partnerships with project owners and developers and offers the following advantages:
flexibility around project development, implementation and ACCU delivery
access to highly qualified experts to provide ERF project assistance
financial advice around project performance
opportunities for further project development
risk mitigation against project disruption and shortfall in ACCU creation.
At Corporate Carbon our core business is delivering commercial value through carbon management. Feel free to contact us with any carbon related questions on the policy, science and business of carbon.