February 2014
Welcome to the first edition of the Emissions Reduction Fund Update. This newsletter will
provide regular updates on the implementation of the Emissions Reduction Fund. To receive
future editions of this newsletter, please subscribe at http://www.environment.gov.au.
IN THIS EDITION
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Comments invited on the Emissions Reduction Fund Green Paper
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Consultation on the Emissions Reduction Fund
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Expert Reference Group to guide design of the Emissions Reduction Fund
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Technical Working Groups established across key sectors
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Updates from the first round of working group meetings
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Coal Fugitive Emissions
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Building Energy Efficiency
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Industrial Energy Efficiency
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Transport
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Waste
Upcoming working group meetings
Comments invited on the Emissions Reduction Fund Green Paper
Comments are now invited on a Green Paper outlining design options for the Emissions Reduction
Fund, the centrepiece of the Australian Government’s Direct Action Plan.
The Emissions Reduction Fund will work together with other measures under the Direct Action Plan
and the Carbon Farming Initiative to help Australia meet its target of reducing emissions of
greenhouse gases by five per cent below 2000 levels by 2020.
The Emissions Reduction Fund will provide a strong incentive for businesses across the Australian
economy to reduce emissions. The Government has allocated $300 million, $500 million and $750
million over the next three financial years to purchase abatement through the fund via a competitive
process.
The Green Paper and details on how to make a submission are available at
http://www.environment.gov.au/topics/cleaner-environment/clean-air/emissions-reduction-fund/greenpaper. Comments are invited by 21 February 2014.
Consultation on the Emissions Reduction Fund
A public information session was held in Canberra on Monday 3 February to discuss the Emissions
Reduction Fund Green Paper. The presentation covered topics included in the Green Paper, followed
by an in-depth question and answer session with a panel of representatives from the Department.
The session was well attended, with about 100 industry and community representatives. More than 60
representatives also participated in teleconference information sessions throughout the week.
Expert Reference Group to guide design of the Emissions Reduction Fund
The Government has established an Expert Reference Group to provide high-level advice on the
design of the Emissions Reduction Fund. The Expert Reference Group will inform the Emissions
Reduction Fund's design and provide the Government with expert and practical advice for
consideration.
The Expert Reference Group consists of leading industry and academic experts, appointed for their
industry experience and expertise. Further details, including the full membership of the group, are
available on the Department’s website at http://www.environment.gov.au/topics/cleanerenvironment/clean-air/emissions-reduction-fund.
Technical Working Groups established across key sectors
The Government has also established Technical Working Groups for each of the key industry sectors,
to assist in developing methodologies for estimating emissions reductions, which will be used under
the Emissions Reduction Fund. Methodologies will include rules for identifying eligible abatement
projects and measuring their results.
The working groups will have a strong focus on ensuring that methods achieve genuine outcomes for
a cleaner environment, are cost-effective and simple to put into practice.
Working group participants have self-nominated and have relevant technical expertise and industry
experience. They are expected to meet regularly over the coming months and will report their
progress to broader stakeholder reference groups.
For further information on the working groups, or to join a group, register your interest by email to
emissions-reduction@environment.gov.au.
Updates from the first round of working group meetings
Coal Fugitive Emissions
The working group held its first meeting on 2 December 2013 and is investigating the use of existing
emissions reduction methods for estimating reductions in fugitive emissions from Australia’s
underground coal mines. The group is examining a method based on existing National Greenhouse
and Energy Reporting emissions measurement approaches.
The working group considered, if possible, this should be a consolidated method covering the
capture, flaring or generation of coal mine methane at underground mines (both active and
decommissioned) and open cut mines. It could also cover ventilation air methane oxidation at active
underground mines, noting that there remain a range of technical and other barriers to the
deployment of this technology.
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Building Energy Efficiency
At its first meeting on 21 November 2013, the working group examined a method for major energy
efficiency upgrades for non-residential buildings. ‘Non-residential buildings’ (also called commercial
buildings) includes commercial, retail and industrial buildings.
The group recommended that existing tools, such as the National Australian Built Environment Rating
System, Green Star and the International Performance Measurement and Verification Protocol should
be used where possible and appropriate to estimate emission reductions.
Industrial Energy Efficiency
The group had its first meeting on 11 November 2013. The group examined a method for heating
processes, given the use of these technologies across the industrial sector. The group also identified
the potential for improvements in refrigeration systems, which can reduce both energy use and
emissions of other greenhouse gases.
A further priority identified by the group was the development of a generic ‘engineering approach’ for
energy efficiency improvements in industrial processes. This could build on existing methods already
widely used in the industrial sector, such as the International Performance Measurement and
Verification Protocol. The group also noted the importance of aggregation in making projects
commercially attractive.
Transport
At its first meeting in 28 November 2013, the working group on transport examined a method covering
reductions in emissions intensity. Further consideration will be given to the process for developing
emissions intensity metrics, boundaries and baselines for each subsector.
The group also considered developing a method for emissions reduction achieved through changing
passengers’ behaviour (‘modal shift’).
Waste
The focus of the working group on waste, which first met on 26 November 2013, was to broaden the
existing Carbon Farming Initiative (CFI) methodologies for landfill gas capture to include non-legacy
waste. The group also saw an opportunity for the new method to incorporate more streamlined
monitoring requirements and revised baseline guidelines.
Consideration was also given to consolidating the four existing CFI methodologies for Alternative
Waste Treatment into a single, consistent method. The group will also consider expanding the
methodology to include anaerobic digestion as an eligible technology, and power generation. As a
subsequent priority, the group will explore new abatement opportunities in the wastewater sector.
Upcoming working group meetings
Further meetings of the technical working groups are being scheduled for February and coming
months. Confirmed dates will be published in the Emissions Reduction Fund Update. If you are
interested in participating in, or otherwise contributing to the work of these groups, please email
emissions-reduction@environment.gov.au.
Further information
For further details about the Australian Government’s Direct Action Plan and broader plan for
environmental policies please visit http://www.environment.gov.au.
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Comments
We welcome your feedback on the Emissions Reduction Fund Update, including suggestions for
future content and format. Please send your comments to emissions-reduction@environment.gov.au.
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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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