The Emissions Reduction Fund continues to purchase carbon abatement from the land and industry sectors.
The Clean Energy Regulator held the eighth Emissions Reduction Fund auction on 10–11 December 2018, purchasing 3.27 million tonnes of carbon abatement for $45 million.
Clean Energy Regulator Chair David Parker said the results from this auction show that the market continues to evolve, with new projects from Western Australia, and innovative contracting arrangements now operational.
"This year, it has been pleasing to see a significant number of competitively priced land-based projects come forward from Western Australia and secure contracts at auction," Mr Parker said.
"As the market matures, we are seeing smaller quantities of abatement contracted at auction, but there will be a greater supply of Australian carbon credit units (ACCUs) available to the private market."
In some instances, projects registered for this auction are expected to yield up to 50 per cent more ACCUs for their project than what has been contracted in this auction.
"The government can be a foundation buyer, but it doesn’t necessarily need to be the sole buyer of carbon abatement generated by eligible projects," Mr Parker said.
"It is exciting to see the market consider new ways to finance and structure their project, which ultimately help to broaden the availability of ACCUs to the private market."
"Since the scheme began in 2015, we have registered a total of 772 projects that represent key land and industry sectors across the Australian economy, which is a significant achievement."
"Most projects are well into the implementation and reporting phase, and we will continue to work closely with participants to ensure they comply with their reporting and crediting obligations."
Looking forward to ACCU market activity in 2019, the Clean Energy Regulator expects that with contract deliveries on track, demand for ACCUs will remain steady. However, considering the long lead-time to establish some types of projects, Mr Parker encourages interested participants to register their project now.
"Interested participants do not need to wait for an auction and can register a project to receive ACCUs at any time," Mr Parker said.
More than $200 million in funding remains to run further purchasing events, which the Clean Energy Regulator intends to announce next year.
Contact the media team for more information:
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Media update - Successful eighth auction contracts more carbon abatement (Word)
Media update - Successful eighth auction contracts more carbon abatement (PDF)
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