Emissions Reduction Fund Update

02 September 2015

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Facilities Method released by Emissions Reduction Fund (ERF)

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Under the facilities method, project proponents will be able to measure emissions reductions from facilities that already report their emissions under the National Greenhouse and Energy Reporting Scheme (NGERS).

The method works by using a facility’s production data and previously reported emissions data to establish a baseline using the emissions intensity of production. Credits are issued when the facility reduces the emissions intensity of its production to be below the baseline level.

Projects registered under the facilities method will be able to receive credits for emissions reductions from eligible NGER facilities for a seven year crediting period. The method has been designed to help project developers to design more innovative projects and ensure that emissions reductions are real and additional to business as usual.

What does the Facility Method mean for Food Manufacturers?

Improving efficiency in production processes to grow production output

As stated above the ERF will issues credits only when the production emissions fall below the baseline level. This means it is imperative for food manufacturers to find better ways to improve efficiency of at every stage of their production process. The key to this is utilising the correct reporting methodologies, key measurables and correct data to develop a detailed understanding of their current production methods. Improving at a process level, down to ‘per unit’ data, can increase production outputs whilst meeting the all-important energy intensity baselines.

This depth of analysis also puts in place the processes required to meet for the strict reporting and auditing methods used by the ERF.  It is vital that business owners and project managers adhere to these to secure their chunk of funding.

Read our previous ERF updates and other top points for Food Manufacturers

Reminder for Second Emissions Reduction Fund Auction

Any new projects that wish to enter the second Emissions Reduction Fund auction are required to be submitted in full by 18 September 2015. The Clean Energy Regulator has announced that it will hold the auction for carbon abatement contracts on 4 and 5 November 2015.

The auction guidelines are available from the Clean Energy Regulator’s website

First Auction Results – April 2015

The Clean Energy Regulator awarded contracts to the value of $660 million. The successful contractors have committed to deliver over 47 million tonnes of abatement, with an average price of $13.95 per tonne of abatement.

The 107 carbon abatement contracts were awarded to 43 contractors covering 144 projects. The majority applied under sequestration methods and landfill and alternative waste treatment methods.

For all Emissions Reduction Fund Update news visit the Department of the Environment website.