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Emissions Reduction Fund schematic

25 November 2016

There are two components to participating in the Emissions Reduction Fund

 

The first component is running and reporting on an eligible ERF project to earn Australian Carbon Credit Units (ACCUs).

  • Select a suitable method
  • Ensure you understand the reporting, monitoring and measurement and record keeping requirements for the method.
  • Are you eligible to Register?
    • New Project
    • Legal Right
    • Fit & Proper Person
    • Regulatory additionality
    • Other government funding
    • Eligible interest holder consent
    • Method specific eligibility e.g., baseline data.
  • Plan the project including
    • cost/benefit analysis
    • capability/skill requirements
    • monitoring and record keeping systems
    • risk analysis
    • determine project structure e.g., single project, aggregated project
  • Plan the project including
    • Complete pre-registration requirements for method (e.g. baseline data, legal right)
    • Estimate project abatement
  • Forms/Resources
  • Run project as per method which contains specific instructions for the calculation of abatement and other information required to be reported.
  • Report on your project. Reports must meet method requirements and include calculation of actual abatement achieved in the reporting period. You may report as frequently as the method allows but a minimum of once every two years for emissions avoidance and once every five years for sequestration.
  • Reports must include audit reports where scheduled. Initial audit required with the first project report. Additional audits can be triggered.
  • Forms/Resources
  • Once issued into your ANREU account you can choose to hold or sell your ACCUs.
  • You may choose to sell all or some of your ACCUs to the Government through a carbon abatement contract. ACCUs are transferred to Clean Energy Regulator account to meet contract obligations.
  • You may sell all or some of your ACCUs into the secondary market under a private commercial agreement. This market is not regulated or controlled by the Australian Government.

The second component to the Emissions Reduction Fund

 
Bidding to sell ACCUs through a Carbon Abatement Contract is optional and can occur at any time following project registration.
  • Read Carbon Abatement Contract Obtain legal/financial advice Determine preferred contract length, abatement/ ACCUs to be offered and realistic delivery schedule
  • Contract Duration
    Standard: 7 or 10 years (projects that have a crediting period of 10 years or more can apply for a contract period of up to 10 years)
  • Short Term: Less than 7 years Immediate: Single delivery of ACCUs made within a few days of a successful bid.
  • Must be able to deliver minimum 2000 t/CO₂-e per annum for contract period (unless project registered prior to Dec 13 2014).
  • Forms/Resources
  • You agree to the Commercial and Delivery terms of the contract before the auction. If your bid is successful at auction, you are contracted to deliver your agreed quantity of ACCUs according to the delivery schedule that you set.
  • Auction Qualification
    Complete application no later than 20 business days prior to Auction. Must have a registered project (or project under assessment)
    • Agree to code of common terms and commercial terms.
    • Apply for account in the online bidding platform
  • Auction registration
    Complete application no later than 5 business days prior to Auction
    • Agree to delivery terms including total ACCUs, contract period and delivery schedule. Nominate authorised bidder
  • Auction bid
    Complete via online bidding platform. Determines financial terms. Contract commences within 5 business days of accepted bid.
  • Forms/Resources
  • You must transfer required ACCUs from your ANREU account to government to meet contract. Invoice Government for contracted price.
  • Delivery Failure
    You can deliver ACCUs from other sources to meet any shortfall in contracted ACCUs. If a delivery failure is anticipated, you must contact the CER to negotiate a revised delivery schedule. Generally, delivery schedule can be revised to allow for up to 20% under delivery. Contract duration and total abatement amount cannot be negotiated so total abatement must be delivered by contract end. Buyers market damages may apply where total amount of contracted ACCUs are not delivered.
  • Forms/Resources


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