Climate Solutions Fund - Emissions Reduction Fund
The Climate Solutions Fund-Emissions Reduction Fund (ERF) provides incentives for emissions reduction activities across the Australian economy to support achieving of Australia’s 2030 emissions reduction target. The Emissions Reduction Fund’s core principles are to reduce emissions at lowest cost and purchasing genuine and additional emissions reductions.
The ERF operates alongside existing programs that are already working to reduce Australia’s emissions growth such as the Renewable Energy Target and energy efficiency standards on appliances, equipment and buildings. The Safeguard mechanism began in July 2016, to ensure emissions reductions paid for through the ERF are not offset by significant increases in emissions elsewhere in the economy. The Australian Government provided $2.55 billion toward the ERF, with further funding to be considered in future budgets.
The ERF offers a range of opportunities for businesses, local councils, state governments and land managers to reduce greenhouse gas emissions associated with agriculture, energy, waste, transport, and industrial processes. As of March 2020, the ERF had secured over 192.1 million tonnes of abatement through 473 projects under contract.