The Emissions Reduction Fund (ERF) is an emissions offsets scheme combined with Government purchasing of emission reductions.
The Authority found that the ERF is performing well, creating incentives for new domestic emissions reductions at low cost that will contribute to Australia’s targets under the Paris Agreement. Effective architecture has been put in place to credit abatement across the economy, enable Government purchasing and ensure compliance with the scheme.
The ERF was designed so that it could be refined over time as knowledge and experience with the scheme grew. With this in mind, the Authority has made recommendations to:
- Enhance environmental integrity and increase abatement
- Further secure permanence of carbon stored in vegetation and soil
- Strengthen investment and contract delivery
- Enhance administration and compliance
- Expand access and opportunity for new participants
The report builds on a consultation paper released in August 2017, which sought stakeholders’ views on how the ERF is performing and whether improvements should be made to its operation, administration, design and governance.