The Clean Energy Regulator held the sixth Emissions Reduction Fund auction on 6–7 December, purchasing an additional 7.95 million tonnes of carbon abatement bringing the total contracted abatement to over 191 million tonnes.
Clean Energy Regulator Chair David Parker said the sixth auction delivered the volume expected given the market activity observed prior to the auction.
“We expected to purchase in the range of $75 million to $150 million at this auction and we have done that—purchasing 7.95 million tonnes of carbon abatement, for a little over $104 million.”
The average price per tonne of abatement at this auction was $13.08, consistent with the range at previous auctions, bringing the average price across all auctions to $11.90.
More than 404 contracts worth $2.28 billion are now supported under the scheme, with the majority of projects contracted well under way.
“Over 26 million tonnes of contracted abatement from the first five auctions has already been delivered, on or ahead of schedule,” said Mr Parker.
Having successfully established a significant base of projects, the Clean Energy Regulator and the industry is now shifting focus to the delivery of abatement.
"As predicted, participation in the sixth auction was consistent with expectations in a maturing market, where projects coming forward have stabilised to more sustainable levels,” said Mr Parker.
“The market continues to demonstrate interest in the scheme, and has shown capacity to bring forward projects that deliver low cost abatement."
With more than $265 million available, there are sufficient funds to run future purchasing processes. The Clean Energy Regulator intends to make an announcement early next year about the next purchasing process.
“It is important to have regular purchasing events to prompt the ongoing development of projects, however participants are reminded that they do not need to wait for an auction and can register a project at any time,” Mr Parker said.
Media update - Sixth auction results are in
Contact the media team for more information:
email@example.com or (02) 6159 3448.
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