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Emissions Reduction Fund


This Fund is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. Its objective is to help achieve Australia’s 2020 emissions reduction target of 5% below 2,000 levels by 2020 and 26-28% below 2,005 emissions by 2030.

The Clean Energy Regulator purchases emissions reductions through a carbon abatement purchasing process. This process can include a reverse auction, tender or other process.

Emissions reduction purchases will be in the form of Kyoto Australian carbon credit units (ACCUs). The Clean Energy Regulator will make these purchases through a carbon abatement contract (contract) at a price determined through the auction, which will be a pay-as-bid reverse auction.

The Clean Energy Regulator will set a benchmark (or ceiling) price for the auction, which will not be disclosed. In setting the benchmark price for the auction, the Clean Energy Regulator will have regard to the principles set out in sub-section 20G(3) of the CFI Act.

All eligible bids will be placed in a bid stack and ranked by price offered, with the lowest price bid being ranked first and the highest price bid being ranked last. Eligible bids offering the same price will be ranked equally and treated equally.

The Clean Energy Regulator will only accept bids from, and contract with, participants of projects who complete the following four steps:
- Step 1: Project registration: Closes 10 February 2020
- Step 2: Auction qualification: Closes 17 February 2020
- Step 3: Auction registration: Closes 17 March 2020
- Step 4: Bidding: Closes 2 April 2020

Applications for project registration, auction qualification and auction registration can be submitted at the same time or sequentially, although they can only be approved by the Clean Energy Regulator sequentially.

Who Can Apply?

Eligible applicants include:
- Businesses
- Community organisations
- Local councils
- State governments
- Land managers
- Other members of the community

Please contact the program administrator for complete eligibility requirements.

Eligible Activities

Eligible types of projects that the participants can choose to undertake as part of the Emissions Reduction Fund are called methods. The methods explain how to carry out a project and measure the resulting reductions in emissions.

A number of different methods will be available and many methods can be applied broadly which means that a wide variety of projects can use each one. These include:
- A generic method for emissions reductions at facilities reporting under the National Greenhouse and Energy Reporting Scheme
- Capture and destruction of coal mine fugitive emissions
- Reductions in emissions-intensity of transport
- Commercial, industrial and aggregated energy efficiency
- Capture and combustion of landfill gas and agricultural waste
- Alternative treatment of organic waste
- Capture and combustion of biogas from wastewater
- Methods for the land sector, including increasing soil carbon, reducing livestock emissions, expanding opportunities for environmental and carbon sink plantings, and reforestation

Main Assessment Criteria

The main assessment criteria for the auction qualification and auction registration application include (but not be limited to):
- The participant’s suitability to contract with the Commonwealth.
- The participant’s ability to deliver the proposed agreed quantity of ACCUs from the relevant project(s).
- The performance of the participant or any of their authorised representatives under any contract entered into by them. This will include, but not be limited to, assessing whether:
a) The person has demonstrated reasonable endeavours to fulfil any applicable conditions precedent under contracts to which it is or was party.
b) The person has failed to deliver ACCUs (whether in whole or in part, or in accordance with one or more agreed or varied delivery schedules) under, or has in any other manner breached, any contract to which it is or was party.
c) The person has provided any representation or warranty in relation to any contract to which it is or was party or any of its projects that the agency believes is or was untrue, inaccurate, incomplete or misleading.
d) The person has used the flexibility provisions under a carbon abatement contract to which it is or was party to preference deliveries of ACCUs to a third party.
e) The person’s behaviour in relation to contracts or projects unduly created unreasonable administrative effort for the agency.

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Documentation Uploaded
Guidelines 2019-11-18 Download
Auction Result 2019-03-20 Download

Use these documents as a guide only - always get the latest direct from the Administrator

Status Open
Closing Information
Please see the Overview for the closing details.

Funding Type Tender
Co-contribution Yes
Competitive Yes
Eligible Activities
Transport and Distribution
Infrastructure / Equipment
Environment and Sustainability
General Operations
Environment : Energy
Infrastructure : Other
Gender Any
Age Any
Who Can Apply?
Energy and Renewables
Automotive and Marine
Eligible Organisation Type(s)
Difficulty Rating
Tier Federal
Department of the Environment and Energy
Program Administrator
Clean Energy Regulator