The Emissions Reduction Fund is a voluntary scheme that provides incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions.
The Emissions Reduction Fund provides ongoing opportunities for farmers and land managers to participate in emissions reduction and carbon sequestration (capture and storage of carbon) projects.
Under the scheme, landowners and farmers who adopt approved Emission Reduction Fund methods can earn Australian Carbon Credit Units. 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 has policy responsibility for the Emissions Reduction Fund.
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 Plantation Forestry Methodology Determination, also known as 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/s as an Emissions Reduction Fund Plantation Forestry Project and generate Australian Carbon Credit Units.
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/s may lead to an undesirable impact on agricultural production in the region in which the project would be located. In order to assess the potential for a proposed project to have undesirable impacts on agricultural production, anyone considering undertaking an Emissions Reduction Fund Plantation Forestry Project that converts non-forest land to forest 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: Emission Reduction Fund Plantation Notifications.
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.