The Emission Reduction Fund (ERF) is part of the federal government’s Direct Action Plan, providing financial incentives to businesses that realise emission reductions. With a budget of $2.55 billion, Demand Manager is actively exploring opportunities.
The ERF is an extension of the Carbon Farming Initiative (CFI). While this initiative has been around for a number of years, additional activities are now targeted including:
- Upgrading commercial buildings
- Improving energy efficiency of industrial facilities
- Reducing electricity generator emissions
Participants who meet specific eligibility requirements can undertake activities like these by following approved emission reduction methods. The anticipated emission reductions resulting from these activities are converted into Australian Carbon Credit Units (ACCUs) which are offered for sale to the government through a reverse auction. That is, sellers offer the ACCUs at a price per tonne of emission reductions and the lowest-cost projects will be selected by the government. Successful participants enter into a contract with the government and will be paid the price that they bid.
New methodologies are progressively being rolled out. For example, upgrades to commercial lighting buildings which use the NABERS methodology to quantify savings can now be registered with the government. Other methodologies are expected to follow within the next months.
Contact Demand Manager for more information, or if you require assistance to access this funding.