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Department of Agriculture

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  1. Home
  2. Agriculture and land
  3. Farming, food and drought
  4. Climate change and the agricultural sector
  5. Emissions Reduction Fund

Sidebar first - Farming

  • Climate change
    • Adaptation
    • Mitigation
      • Emissions Reduction Fund
        • Biochar Capacity Building Program
        • Emissions Reduction Fund Plantation Notification
    • A Coordinated National approach

Emissions Reduction Fund

The Emissions Reduction Fund is a voluntary scheme that incentivises organisations and individuals to adopt new practices and technologies to reduce their emissions or store carbon.

The Emissions Reduction Fund provides ongoing opportunities for farmers and land managers to:

  • participate in emissions reduction, and
  • capture and store carbon (carbon sequestration).

Under the scheme, landowners and farmers who adopt approved ERF methods can earn Australian Carbon Credit Units (ACCUs). These units can be sold to the government or on the secondary private market to generate additional income streams, while benefitting the environment.

Emissions reduction methods set out the rules for estimating emissions reductions from different activities. There are a number of approved methods available for agriculture and vegetation management; these are available on the Department of Industry, Science, Energy and Resources website.

The Department of Agriculture, Water and the Environment is delivering the Australian Government’s Agriculture Biodiversity Stewardship Package, including the Carbon + Biodiversity Pilot. This Pilot is trialling arrangements to reward farmers for improving on-farm biodiversity together with carbon projects under the Emissions Reduction Fund.

Administration of the Emissions Reduction Fund

The Department of Industry, Science, Energy and Resources is responsible for ERF policy.

The Clean Energy Regulator is the Australian independent statutory authority responsible for:

  • developing the technical rules (methods)
  • administering the Emissions Reduction Fund
  • making emissions reduction purchases on behalf of the Government.

Emission Reduction Fund Plantation Forestry Notification

The Emissions Reduction Fund Plantation Forestry Method provides a mechanism to increase carbon sequestration through either the establishment of a new plantation forest, conversion of a short-rotation plantation to a long-rotation plantation, or maintenance of a pre-existing plantation forest that meets the eligibility requirements of the method but was established under another determination.

Proponents who are considering undertaking a new plantation forest or an expansion of an existing plantation forest/s (including farm forestry) may consider seeking approval from the Clean Energy Regulator to declare the proposed project as an eligible offsets project and generate ACCUs.

To complement the eligibility requirements of the Emissions Reduction Fund Plantation Forestry Method, the Australian Government Minister responsible for Agriculture assesses whether a proposed project may lead to an adverse impact on agricultural production in the region in which the project would be located.

To assess the potential for a proposed project to have adverse impacts on agricultural production, anyone considering undertaking an Emissions Reduction Fund Plantation Forestry Project is required to submit an Emissions Reduction Fund Plantation Notification to the Department of Agriculture, Water and the Environment. For further information on notification requirements please visit: Emissions Reduction Fund Notifications Guidelines.

Emission Reduction Fund Regeneration Notification

The Emissions Reduction Fund Human-Induced Regeneration of a Permanent Even-Aged Native Forest (HIR) and Native Forest from Managed Regrowth (NFMR) methods provide a mechanism to increase carbon sequestration through eligible activities such as managing the timing and extent of grazing or allowing native vegetation to grow and become forest.

Proponents who are considering undertaking a new regeneration project or an expansion of an existing regeneration project may consider seeking approval from the Clean Energy Regulator to declare the proposed project as an eligible offsets project and generate ACCUs.

To complement the eligibility requirements of the Emissions Reduction Fund Regeneration methods, the Australian Government Minister responsible for Agriculture assesses whether a proposed project may lead to an adverse impact on agricultural production or the local community in the region in which the project would be located.

To assess the potential for a proposed project to have adverse impacts, anyone considering undertaking an Emissions Reduction Fund Regeneration Project is required to submit an Emissions Reduction Fund Regeneration Notification to the Department of Agriculture, Water and the Environment. For further information on notification requirements and to determine if your project requires a Regeneration Notification, please visit: Emissions Reduction Fund Notifications Guidelines.

More information

For more information about the Emissions Reduction Fund, please visit the Department of Industry, Science, Energy and Resources website or phone +61 2 6213 6000.

For information about participating in the Emissions Reduction Fund, please visit the Clean Energy Regulator website or phone 1300 553 542.

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Last updated: 01 April 2022

© Department of Agriculture, Water and the Environment

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.