The Australian Government has committed $2.55 billion to purchase the lowest cost abatement through the Emissions Reduction Fund.
The Emissions Reduction Fund is the central component of the Government’s Direct Action Plan, with the objective of helping Australia meet its emissions reduction target of five percent below 2000 levels by 2020.
The Government will purchase abatement, in the form of Australian carbon credit units, from a wide range of sources across the economy. It will provide positive incentives for business, organisations, local councils, landowners and households to take actions to reduce their greenhouse gas emissions.
The bill passed the House of Representatives on 25 June 2014 and is now before the Senate. Once the bill is passed by the Senate, the Emissions Reduction Fund will be administered by the Clean Energy Regulator.
Understandably, many businesses want to begin preparation for projects as soon as possible. From 1 July 2014, businesses can now pre-register their project by submitting a ‘Notice of Intent’ to commence a new project before the bill to implement the Emissions Reduction Fund is passed.
Businesses will have until 1 July 2015 to formally register projects for which notice has been given under the provision. Pre-registered projects will still be subject to meeting the Emissions Reduction Fund eligibility requirements that apply to all Emissions Reduction Fund projects.
For further information, visit the Clean Energy Regulator website.