Emissions Reduction Fund passed by Senate

The legislative amendments to establish the Emissions Reduction Fund - the centrepiece of the Australian Government’s policy suite to reduce emissions - has been passed by the Senate.

Through the fund, the government will purchase lowest cost abatement (in the form of Australian carbon credit units) from a wide range of sources, providing an incentive to businesses, households and landowners to proactively reduce their emissions.

Chloe Munro, the chair and chief executive officer of the Clean Energy Regulator, said businesses interested in carbon abatement should visit the regulator’s website. “To be eligible,” she said, “a project must comply with an approved method for measuring the carbon abatement that it will deliver.

“The Clean Energy Regulator will hold competitive auctions to purchase lowest cost carbon abatement from registered projects,” Munro added. “Successful bidders will contract with the Clean Energy Regulator to be paid for delivered abatement in the form of Australian carbon credit units, generally over a seven-year period.”

Operation of the fund will begin as soon as the amendments commence and the necessary legislative rules are made, Munro said. The first auction will be held early in 2015.