September 2014
Welcome to the Emissions Reduction Fund Update. This newsletter provides regular updates
on the implementation of the Emissions Reduction Fund.
IN THIS EDITION
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Emissions Reduction Fund methods released for public consultation

Priority-setting for new ERF methods to start in October

Working group updates

New Carbon Farming Initiative methods now available

How can we help you find out more?

Subscribe to get the latest Carbon Farming Initiative news

Further information
Emissions Reduction Fund methods released for public consultation
Comments are now invited on the first three draft Emissions Reduction Fund methods.
The alternative waste treatment method will support projects that treat eligible mixed solid waste at
an alternative waste treatment (AWT) facility. The AWT facility could recycle, resell or treat the waste
rather than disposing of it in landfill. The method will cover construction of new AWT facilities and
expansion of existing AWT facilities. It will also provide continued emissions reduction opportunities
for AWT facilities that participated in the Carbon Farming Initiative.
The landfill gas method builds on Carbon Farming Initiative methods to reduce emissions by
destroying methane from landfill gas using a combustion device such as a flare. Combusting the
landfill gas significantly reduces the global warming effect of methane that would otherwise escape
from landfills as the waste decomposes.
The coal mine waste gas method will support projects that destroy methane—a potent greenhouse
gas contained in coal mine waste gas—that would otherwise have been emitted to the atmosphere.
The method will cover new projects and existing coal mine waste gas destruction projects which
increase their emissions reductions beyond existing capacity.
These methods have been developed in consultation with technical working groups that include
representatives from relevant industry bodies and organisations.
You are welcome to write a response to the draft methods. The submission deadline is 5pm AEST
1 October 2014.
Further details about the methods and how to make a submission are available at
http://www.environment.gov.au/climate-change/emissions-reduction-fund/methods.
Priority-setting for new ERF methods to start in October
With many of the technical working groups nearing completion of the first group of priority ERF
methods, the inaugural ERF priority-setting process is set to kick off from October this year.
Technical working groups will compile suggestions for their forward work plans, with the Minister’s
agreed list of method development priorities for 2015 to be published on the Department’s website in
the first quarter of 2015.
Method development will be prioritised according to criteria focused on optimising opportunities for
large volumes of genuine abatement. Specifically, the criteria for method development prioritisation
are:
1. broad business support for the method and likely volume of abatement
2. whether emissions reductions can be easily estimated with a reasonable degree of certainty
3. whether the technology involved is proven and commercially ready
4. if the activity could have adverse social, environmental or economic impacts, and
5. if the activity could not be promoted more efficiently through alternative measures.
Noting the criteria, if you would like to suggest a method for development email emissionsreduction@environment.gov.au.
Working group updates
For further information on any of the working groups, email emissionsreduction@environment.gov.au.
Facility method
The facility method technical working group has met regularly to progress the draft method and
ensure it is practical and workable. We expect to release the method for public consultation in
October.
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Building Energy Efficiency
The technical working group met in late July to discuss two draft methods that are being adapted from
the New South Wales Energy Savings Scheme to be applied on a national scale under the Emissions
Reduction Fund.
The meeting discussed the aggregated metered baseline method for small energy users. This
draft method uses control and treatment groups to quantify energy savings and emissions reductions
in large groups of small to medium energy users, for example households and small businesses.
Projects under this draft method would offer energy saving goods or services to sites in the treatment
group. The control group is used to determine what the treatment group’s emissions would have been
if they did not receive those goods or services.
The working group also considered the draft commercial buildings method. This is about reducing
emissions through energy efficiency upgrades to existing commercial buildings. The draft method
uses the National Australian Built Environment Rating System (NABERS) to quantify energy efficiency
improvements and calculate emissions reductions. The draft method applies to commercial buildings
that have a NABERS energy rating, including offices, hotels, shopping centres and data centres.
Industrial Energy Efficiency
The technical working group met in mid-August to discuss the draft Project Impact Assessment
Method (PIAM), which has been adapted from the New South Wales Energy Savings Scheme for use
under the ERF. The draft method, which covers efficiency improvements in electricity use, is being
extended to also cover emissions from direct fuel combustion.
The PIAM has three sub-methods to support a diverse range of activity-level industrial energy and
fuel efficiency projects. Each sub-method uses regression analysis to model baseline emissions, to
clearly identify changes in energy-related emissions that are directly attributable to the project.
Transport
The technical working group met in late July to discuss the draft transport method. The draft method
credits emissions reductions achieved through a reduction in the emissions intensity of vehicles
across road, air, sea and mobile equipment. Activities contributing to a reduction in emissions
intensity could include installing, upgrading or retrofitting existing vehicles with new technologies,
switching to less emissions intensive fuels or improving operational or management practices.
The Department is in the process of considering technical working group feedback and further expert
advice ahead of preparing the draft method for public consultation.
New Carbon Farming Initiative methods now available
Three new methods are now available for use under the Carbon Farming Initiative, bringing to 25 the
number available to potential carbon farmers.
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More information on CFI method determinations is available on the Carbon Farming Initiative website.
Project applications under these three methods may be made to the Clean Energy Regulator.
Storing carbon in soil carbon sequestration
The method for building soil carbon in grazing systems is now available for use under the CFI.
Projects using this new method can earn carbon credits for replenishing stores of carbon in the soil,
while enhancing soil health, vegetation management and productivity.
The soil sequestration method relies upon direct measurement of soil carbon to estimate
sequestration. It sets out instructions for undertaking projects and estimating the abatement. The
Department has worked closely with landholders, scientists and key interest groups to develop the
method.
In the future landholders will be able to choose from several measurement and model based soil
carbon methods that best cater to the unique commercial and environmental characteristics of their
projects. Further soil carbon methods for other agricultural land uses will be available from late 2014.
Tools and a factsheet are available from the Department of the Environment’s website.
Feeding nitrate supplements to beef cattle
The agriculture sector produces more than 16 per cent of Australia’s greenhouse gas emissions—
mostly from cattle. The method for feeding nitrate supplements to cattle will help the beef industry to
reduce emissions from its herds. Replacing urea lick blocks with nitrate lick blocks for pasture-fed
cattle reduces methane emissions caused by enteric fermentation.
Nitrate lick blocks work by helping healthy gut microbes to survive instead of the microbes which
produce methane. The method explains how to upgrade a salt lick from the traditional urea dietary
supplement to methane reducing nitrate lick blocks.
The method will increase productivity and can be undertaken with minimal cost to farmers. This is the
second CFI method for supplementing livestock feed.
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Farm forestry
This method for reforestation projects provides new opportunities for farmers to establish small-scale
tree plantations with the dual purpose of storing carbon and growing timber for sale.
Potential project owners can now estimate abatement achieved through carbon storage from
permanent plantings or for harvest plantings on land previously managed for agricultural purposes
and clear of forest.
The method has broad application in the land sector. Economic and other benefits may include
carbon credits, sale proceeds from wood products, enhanced biodiversity and reduced dryland
salinity.
Developed by the Farm Future Industries Cooperative Research Centre, this is the first CFI method to
enable farm forestry projects.
How can we help you find out more?
The Department of the Environment is running a survey to ensure that businesses have easy access
to the information they need about the Emissions Reduction Fund. Please take a few minutes to help
us understand how you prefer to receive information about the Fund. This survey will take about two
minutes to complete.
Subscribe to get the latest Carbon Farming Initiative news
The Carbon Farming Initiative and Emissions Reduction Fund newsletters will be merged as soon as
the Emissions Reduction Fund comes into effect. To keep receiving CFI information please subscribe
to the Emissions Reduction Fund Update.
Further information
Read more about the Australian Government’s broader environmental policies at
www.environment.gov.au.
Disclaimer
The information included in the publication remains in development and parties are advised not to initiate any
projects based on the content of the newsletter. While the Commonwealth has made reasonable efforts to
ensure the accuracy and correctness of the material at the time of publication, the Commonwealth does not
guarantee, and accepts no liability whatsoever arising from or connected to, the accuracy, reliability, currency or
completeness of this material.
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