December 2014
Welcome to the Emissions Reduction Fund Update. This newsletter provides regular updates
on the implementation of the Emissions Reduction Fund.
IN THIS EDITION

Passage of the Carbon Farming Initiative Amendment Bill

Emissions Reduction Fund methods released for public consultation

Priority-setting for new Emissions Reduction Fund methods

Emissions Reduction Fund information sessions

Carbon Farming Initiative reaches 10 million credits

Draft carbon abatement contract for the Emissions Reduction Fund released

Subscribe to get the latest carbon farming and Emissions Reduction Fund news

Further information
Passage of the Carbon Farming Initiative Amendment Bill
On 24 November 2014 the amended Carbon Farming Initiative Amendment Bill 2014 was passed by
the Parliament. Once proclaimed, the Bill will establish the Emissions Reduction Fund.
Emissions Reduction Fund methods released for public consultation
Consultation is currently open on the following draft Emissions Reduction Fund methods:
The industrial and fuel energy efficiency method covers a broad range of electricity and fuel
efficiency activities including upgrades to lighting, heating, ventilation and cooling systems, and
variable speed drive installation. Consultation closes on 12 December 2014.
The aggregated small energy users method covers projects that improve energy efficiency for
households and small businesses. Project participants—for example energy retailers—would offer
energy saving goods and services to a large group of customers. Consultation closes on
12 December 2014.
The sequestration of carbon in soil using modelled abatement estimates method uses modelled
estimates of soil carbon storage and builds on the soil carbon method for grazing systems released
for use under the Carbon Farming Initiative. This method will provide a low-cost path for soil carbon
projects in cropping, pasture and mixed farming systems to participate in the Emissions Reduction
Fund. Consultation closes on 12 December 2014.
The fertiliser use efficiency in irrigated cotton method provides for reducing emissions by using
synthetic fertiliser in irrigated cotton more efficiently. The draft method gives participants the flexibility
to select a broad range of management actions that will achieve these emissions reductions.
Consultation closes on 12 December 2014.
These methods have been developed in consultation with industry and technical working groups.
Further details about the methods and how to make a submission are available at
environment.gov.au/emissions-reduction-fund.
Priority-setting for new Emissions Reduction Fund methods
A reminder that the priority setting for the next round of Emissions Reduction Fund methods to be
developed is currently under way.
Potential priorities to be considered may include:
1. variations to current draft methods (for example upgrading coalmine methane capture facilities, or
varying energy efficiency methods) or
2. new methods.
The Australian Government’s agreed list of method development priorities for 2015 will be published
on the Department’s website in the first quarter of 2015.
Noting the method prioritisation criteria, if you would like to suggest a method for development please
email emissions-reduction@environment.gov.au.
Emissions Reduction Fund information sessions
The Carbon Market Institute will run information sessions about the Emissions Reduction Fund in
Sydney, Melbourne, Perth, Adelaide, Hobart and Bendigo in February 2015. Each session will include
an expert panel of speakers from industry, the Department of the Environment, the Clean Energy
Regulator and AusIndustry.
The programme will include:

an overview of the Emissions Reduction Fund's key principles and design features

an overview and update of method development and status of new methods

examples of projects that could potentially be bid into the Emissions Reduction Fund

factors to consider in preparing a bid, and

how to participate in the Emissions Reduction Fund—key steps in the end-to-end process
including crediting and auctions.
Register at www.carbonmarketinstitute.org/events/erf_information_sessions to attend these free
events.
If you have any questions about the information sessions, contact the Carbon Market Institute on
03 9245 0900.
Carbon Farming Initiative reaches 10 million credits
The Clean Energy Regulator has issued the 10 millionth Australian carbon credit unit (ACCU) under
the Carbon Farming Initiative. This equates to 10 million tonnes of greenhouse gas emissions
prevented from entering the atmosphere and is the equivalent of taking more than 2.9 million cars off
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the road for one calendar year. A snapshot by state and territory of the ACCUs issued can be found
here.
Draft carbon abatement contract for the Emissions Reduction Fund released
The Clean Energy Regulator has released the draft standards terms of the carbon abatement
contract.These will give potential participants in the Emissions Reduction Fund an understanding of
the terms and conditions that will apply to contracts. For details visit
www.cleanenergyregulator.gov.au and search the Emissions Reduction Fund tab for ‘Step 3 –
contracting’.
Subscribe to get the latest carbon farming and Emissions Reduction Fund news
The Carbon Farming Initiative and Emissions Reduction Fund newsletters will be merged when the
Emissions Reduction Fund comes into effect. To keep receiving carbon farming 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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