The Emissions Reduction Fund is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. It is enacted through the
Carbon Credits (Carbon Farming Initiative) Act 2011, the
Carbon Credits (Carbon Farming Initiative) Regulations 2011 and the
Carbon Credits (Carbon Farming Initiative) Rule 2015.
A number of activities are eligible under the scheme and participants can earn Australian carbon credit units (ACCUs) for emissions reductions. One ACCU is earned for each tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project. ACCUs can be sold to generate income, either to the government through a carbon abatement contract, or in the secondary market.
To ensure these emissions reductions are not displaced significantly by a rise in emissions elsewhere in the economy, the Emissions Reduction Fund also includes a
safeguard mechanism, which encourages large businesses to keep their emissions within historical levels.
The Clean Energy Regulator is in the process of developing an
Australian Carbon Exchange that will make the trading of ACCUs simpler, supporting rapidly increasing demand from the corporate sector. It will help foster the growth in Australia’s vibrant carbon markets, where ACCUs credited from approved
Emissions Reduction Fund projects can be traded among individuals and businesses.
Are you looking for information about?