Emissions Reduction Fund
At a glance
Provides businesses with the opportunity to earn Australian carbon credit units (ACCUs) for every tonne of carbon dioxide equivalent a business stores or avoids emitting through projects which adopt new practices and technologies. The ACCUs can be sold to generate income.
Who can apply:
At a minimum, your project must:
- not have started before it's registered
- not be a requirement under Australian law
- not be carried out another government programme.
Other eligibility requirements may apply.
The Emissions Reduction Fund is a scheme that provides financial incentives to organisations and individuals to use new practices and technologies in their business, so they can reduce their greenhouse gas emissions and improve their energy efficiency.
Participants in the scheme can earn Australian carbon credit units (ACCUs) for every tonne of carbon dioxide equivalent they store or avoid emitting. ACCUs can be sold and can generate participants an income.
To ensure emissions reductions aren't displaced by a rise in emissions elsewhere in the economy, the Emissions Reduction Fund includes a safeguard mechanism, which encourages large businesses to keep their emissions within historical levels.
The Emissions Reduction Fund does not provide funding to participants, but it does provide participants the opportunity to earn ACCUs which can be sold to generate income.
An emissions reduction or avoidance project must first be registered, then participants can apply to participate in an auction for the chance to enter into a carbon abatement contract with the Clean Energy Regulator and sell their ACCUs. ACCUs may also be sold on the secondary market.
Participation in the Emissions Reduction Fund is open to individuals, sole traders, companies, local, state and territory government bodies and trusts.
For a project to be able to register with the Clean Energy Regulator under the Emissions Reduction Fund (unless specified otherwise), it must:
- not have started before it has been registered (the newness requirement),
- not be required to be carried out by or under Australian law (the regulatory additionality requirement), and
- not be carried out under another government programme (the government program requirement).
Find out more about the eligibility criteria at Emissions Reduction Fund.
How to apply
There are four steps in the application process:
- Join the Emissions Reduction Fund scheme by registering yourself and your project with the Clean Energy Regulator.
- Secure a contract with the Clean Energy Regulator by bidding at an auction.
- Run your project and provide project reporting and auditing when scheduled.
- Claim ACCUs for your project's emissions reductions and be paid for the ACCUs sold.
Find out more about how to apply at Emissions Reduction Fund.