Inclusion of a CCS Method Under the Emissions Reduction Fund

12th August 2021

Topic(s): Australia, CCS policy

The Emissions Reduction Fund (ERF) is the carbon crediting scheme in Australia through which the Federal Government purchases lowest cost carbon abatement from a range of sources. The fund looks to provide a market-based mechanism that encourages the pursuit of general emissions reductions within the broader context of climate mitigation.

In 2020 the Australian Government’s Low Emissions Technology Statement identified carbon capture and storage (CCS) as one of several priority low emissions technologies. At the request of the government and against the backdrop of emerging projects, the Clean Energy Regulatory began developing a CCS method (or methodology) under the Emissions Reduction Fund. Inclusion under the ERF would allow CCS projects to generate Australian Carbon Credit Units (ACCUs) and thereby generate income.

This brief from Senior Advocacy and Communications Adviser, Matt Steyn, and Principal Consultant Policy, Legal and Regulatory, Ian Havercroft, explains what the Emissions Reduction Fund is, examines how it works and explores the the inclusion of CCS as a methodology.


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Inclusion of a CCS Method Under the Emissions Reduction Fund


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