Australia’s Emissions Reduction Fund (ERF) continues to deliver strong results with a further 6.8 million tonnes of carbon abatement sold through the latest auction in October. 

The October results are on par with the strong result from the previous auction in April, and demonstrate continued strong demand for Australian Carbon Credit Units (ACCUs) and carbon-abatement projects. 

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the latest auction resulted in 24 new contracts for 6.8 million tonnes of abatement, worth around $115.9 million. The auction priced ACCUs at $16.94 per tonne. 

“This is yet another strong result for the ERF, which has now committed around $2.2 billion for projects in rural and regional Australia,” Minister Taylor said. 

“The Morrison Government continues to take real and meaningful action to reduce emissions through the ERF, which is backing projects that deliver on-the-ground practical action to reduce emissions. 

“Voluntary incentives, not penalties, are an essential part of our plan to play our part in global efforts to reduce emissions without imposing new costs on Australian households and business.”  

The Clean Energy Regulator, which manages the ERF, expects a record of 17 million ACCUs to be issued this year. 

Earlier this month, the Government announced five new priority methods, to be developed by the CER over the next 12 months, to expand the range of activities eligible under the ERF: 

• Transport, including emissions reductions created by electric vehicle charging and hydrogen refuelling infrastructure; 
• Hydrogen, including injection of clean hydrogen into the gas network, and the use of hydrogen in electricity generation or other uses, such as low carbon steel; 
• Integrated farm method, including allowing separate ERF land-based activities to be combined or ‘stacked’ on the same land;  
• Carbon capture use and storage (CCUS or carbon recycling), including in the production of industrial and building materials like insulation or concrete; and 
• Savanna fire management, building on the existing method with updated carbon accounting and by expanding the carbon pools and vegetation types covered. 

The Government is also progressing further research and technology development to support the development of future ERF methods, including: 

• Expanded recognition of different sources of agricultural waste as feedstocks, to support an enhanced biomethane or ‘green gas’ method; 
• Livestock feed technologies, which have the potential to substantially reduce emissions from agriculture in the future; 
• Direct air capture technologies, which absorb carbon from the atmosphere for re-use (CCUS) or permanent storage underground. 

For more details on the outcomes of the auction, visit the CER website. 

Media contact: Minister Taylor's office (02) 62777120