Corporate Carbon today announced that it had secured a financing deal with Macquarie Bank to further develop land sector projects under the Australian Emissions Reduction Fund.
The Emissions Reduction Fund is the Australian Government’s multi-billion dollar incentive program to drive effective direct action to reduce emissions and improve the environment across the Australian economy. Projects to deliver emissions reductions through increased carbon sequestration or avoided greenhouse gases are registered through the Clean Energy Regulator under specific emission reduction methods developed by the Department of Environment. Project methods set out eligibility criteria and calculations for issuing Australia Carbon Credit Units (ACCUs). ERF registered projects can compete via reverse auction to access ERF carbon abatement contracts, which are fixed price and volume contracts for ACCU delivery.
Corporate Carbon is in the business of developing innovative pathways to ERF participation for project developers and owners through collaboration and aggregation. This model of engagement has been built on the experience and learnings gained through pioneering involvement with the Carbon Farming Initiative and Emissions Reduction Fund. To date the model has proved very successful with large uptake across a wide variety of ERF method areas, including the land sector.
Matthew Warnken, Managing Director and founder of Corporate Carbon acknowledged the importance of making ERF contracts bankable for land sector projects. 'The land sector has been an important component of ERF success to date, however there have been only limited opportunities to access finance to support project development, especially when compared to renewable energy or energy efficiency projects. Corporate Carbon is now able to offer the owners or developers of land sector projects opportunities to access necessary capital to implement these projects.'
This private sector initiative has the potential to dovetail well with the recent announcement of the Coalition government of the establishment of the $1 billion Reef Fund to finance projects located in the Great Barrier Reef catchment region to improve reef water quality. Gary Wyatt, Executive Director for Corporate Carbon said that 'through this initiative we are attempting to identify and develop land sector carbon abatement projects that are financially viable but are struggling to get implemented due to a lack of funding. In addition to reducing atmospheric carbon pollution, these projects often have a range of other benefits such as improving water quality or increasing bio-diversity.'
Landholders, project owners and developers that are interested accessing financing solutions to support the generation of carbon credits from emissions reduction projects and selling these into the ERF should contact Corporate Carbon.
For further information, contact:
+61 418 238 040
+61 458 567 992