Results released for fourth Emissions Reduction Fund auction

The fourth Emissions Reduction Fund (ERF) auction, held from 16–17 November, saw 47 carbon abatement contracts awarded for 49 projects.

The Clean Energy Regulator committed to purchasing over 34 million tonnes of abatement on behalf of the Commonwealth at an average price per tonne of $10.69 and a total contracted value of $367 million. The largest single contract was for 7.5 million tonnes of abatement, while the smallest was for 20,000 tonnes.

The 47 contracts break down into the following categories:

• Vegetation: 24 bids accepted, covering 14.9 million tonnes of abatement.
• Agriculture: three bids accepted, covering 8.6 million tonnes of abatement.
• Savanna burning: eight bids accepted, covering 5.8 million tonnes of abatement.
• Industrial fugitives: eight bids accepted, covering 4.4 million tonnes of abatement.
• Landfill and waste: three bids accepted, covering 0.44 million tonnes of abatement.
• Energy efficiency: one bid accepted, covering 0.25 million tonnes of abatement.

The auction has been deemed a great success by Minister for Energy and the Environment Josh Frydenberg, who said the total abatement contracted under the ERF since April 2015 is now 178 million tonnes, with the average price per tonne across all four auctions at $11.83 — an average which is less than the previous average of $12.10 per tonne.

Frydenberg added that the results will help the Turnbull government meet its 2020 emissions reduction target, which the government is said to be on track to beat by 78 million tonnes, and assist in meeting its 2030 target.

Full results from the auction can be found on the Clean Energy Register website.