11 December, 2017: The Climate Change Authority has released its latest legislative review of the Emissions Reduction Fund.

The Climate Change Authority Act 2011 (Opens in a new tab/window)tasks the Authority to carry out periodic reviews of the legislation underpinning the Emissions Reduction Fund, the (Carbon Credits (Carbon Farming Initiative) Act 2011(Opens in a new tab/window)). 

The 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.

Publications

Fact sheet on the Emissions Reduction Fund and review findings —Pdf 340 Kb

Media release

Final report: Pdf 2 Mb | Word 1.2 Mb

Executive summary

List of recommendations

Consultation paper 

Further reading

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