The Emissions Reduction Fund continues to go from strength to strength, with around 6.8 million tonnes of abatement purchased at Auction 12 this month.
Auction 12 also saw a variety of new project types being supported.
Orica Limited, an Australian-based multinational, received a contract for 3.4 million Australian Carbon Credit Units (ACCUs) for a project that will reduce emissions by investing in new equipment.
A reforestation project in New South Wales using aerial drone technology for seeding activities also received an ERF contract.
This continues a run of recent excellent ERF results, including:
- 7 million tonnes purchased at the last auction (September 2020), the biggest result since 2017.
- A record 16 million tonnes of abatement credited in 2020, with a new record expected in 2021.
- 158 new projects registered in 2020, the second highest on record.
- More than 200 million tonnes of abatement contracted at an average price of $12.32 (including the results of the latest auction).
- More than $2 billion committed to projects in regional and rural areas.
Minister for Energy and Emissions Reduction Angus Taylor said Australia has one of the world’s largest and most sophisticated offset programs in the ERF.
“The Morrison Government is taking real and meaningful action to reduce emissions through the ERF,” Minister Taylor said.
“The ERF continues to back projects that deliver on-the-ground practical action to reduce emissions, providing benefits to our farming and Indigenous communities, and is helping business and industry to offset their emissions.
“The Government is focused on ensuring Australia’s role in the global effort to reduce emissions doesn’t come at the expense of our prosperity and the ERF is central to that.”
Participation in the ERF is continuing to grow with 117 projects registered after the September 2020 auction, including 44 in 2021.
These projects are expected to generate tens of millions of tonnes of emissions reductions towards Australia’s international targets and will support rising voluntary private demand for ACCUs.
