Overview
Due to feedback from stakeholders, the department is extending the consultations until 11:59pm AEST on Thursday, 2 September 2021. It will not be possible to make a submission after this time.
You are welcome to submit new or additional responses, even if you’ve already submitted input.
The Emissions Reduction Fund (ERF) incentivises Australian businesses to cut the amount of greenhouse gases they create and to undertake activities that store carbon. Methodology determinations (methods) set out the rules that ERF projects must meet and the rules for estimating emissions reductions.
The King Review recommended that the Australian Government establish a process to allow third parties to propose new ERF methods. In line with this, we are seeking your ideas for activities that could be:
developed into an ERF method
incorporated into existing methods.
The government is particularly interested in method proposals that would support:
priority technologies identified in the First Low Emissions Technology Statement
low emissions transport infrastructure (for example, electric or hydrogen vehicle refuelling infrastructure).
Key criteria
You will need to demonstrate how your idea meets the following criteria:
potential take-up of the method and level of abatement
whether supporting technology is available
whether the emissions reductions can be estimated
whether the activity could have potential adverse social, environmental or economic impacts
whether the ERF is the most appropriate mechanism
alignment with broader government objectives, including the Low Emissions Technology Statement, and/or co-benefits.
ERF methods must also meet the Offsets Integrity Standards.
Other factors
We will consider and test whether your proposed abatement activity can be captured in the Australia's National Inventory Reports. This means it will contribute to the Australia’s emissions reduction targets under the Paris Agreement.
We may also consider ideas for pilot methods. The King review recommended developing pilot methods for activities where the underpinning science is uncertain or method design is complicated.
Proponents for pilot projects will need to fund or find other funding sources outside the ERF. Activities for pilot projects can’t be awarded credits under the ERF. They can’t participate in ERF auctions during the pilot phase.
While it’s not possible to guarantee that a pilot method will result in a finalised method, the government would support exempting eligible activities started under the pilot from the newness requirement in any finalised method.
How to have your say
You can submit your responses to these questions via the online survey below. You can also upload supporting documentation at the end of the survey.
Please submit one survey per idea. If you have more than one idea, you are welcome to submit multiple surveys.
Setting method priorities is an annual process so you will have ongoing opportunities to have your say.
How we will use your ideas
Your ideas will inform the Minister’s decision on the priority methods the Clean Energy Regulator will develop in 2022. As part of this process they may be provided to relevant Commonwealth agencies and advisory committees for comment.
In setting the priorities the Minister will also take into account the investment priorities set out in the Low Emissions Technology Statement. The statement is made annually under the Technology Investment Roadmap and covers new and emerging low emissions technologies.
What happens next
This consultation has now closed.
Ideas which meet the key criteria will be provided to the Clean Energy Regulator, the Emissions Reduction Assurance Committee and the Technology Investment Advisory Council for their expert advice.
The Minister will determine the method priorities for 2022 and announce these in late 2021.
