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The Emissions Reduction Fund

The Emissions Reduction Fund

    ​​The Emissions Reduction Fund is a voluntary scheme that aims to reduce Australia’s greenhouse gas emissions by providing incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions.

    Emissions Reduction Fund projects must be conducted according to an approved method. A number of activities are eligible under the scheme, and individuals and organisations taking part may be able to earn Australian carbon credit units (ACCUs). One ACCU is earned for each tonne of carbon dioxide equivalent (t CO2-e) stored or avoided by a project. ACCUs may be sold to generate additional income: either to the government through a Carbon Abatement Contract, or on the secondary market.

    Why participate?

    As well as contributing to Australia’s efforts to reduce the amount of greenhouse gas entering the atmosphere and the opportunity to earn ACCUs, running an Emissions Reduction Fund project may offer a range of other benefits for scheme participants. Examples include increases in biodiversity, better air quality, reduced energy consumption or income from electricity generation exported into the grid. A Carbon Credits (Carbon Farming Initiative—Estimating Sequestration of Carbon in Soil Using Default Values) Methodology Determination 2015 project (called a ‘soil carbon project’ in this guide) may help reduce emissions by sequestering carbon in agricultural soils. This is achieved by increasing soil nutrients, balancing soil acidity and installing irrigation, all of which also improve pasture quality and productivity.

    Using this guide


    This guide provides an introduction to using the (Carbon Farming Initiative—Estimating Sequestration of Carbon in Soil Using Default Values) Methodology Determination 2015 (the method). Methods set out the rules for conducting activities under the Emissions Reduction Fund to earn ACCUs.

    The guide is complementary to the Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act), the associated legislative rules, approved methods and their explanatory statements, but does not replace them. It has been prepared by the Clean Energy Regulator, an independent Australian statutory authority responsible for administering legislation to reduce carbon emissions and increase the use of clean energy.​

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