Emissions Reduction Fund White Paper
The Federal Government has released the Emissions Reduction Fund White Paper which outlines the centrepiece of the Government’s Direct Action Plan to reduce greenhouse gas emissions - The Emissions Reduction Fund. The target is to reduce Australia’s emissions to 5% below 2000 levels by 2020. In the Green Paper, the Government set out a commitment to the Emissions Reduction Fund of $300 million, $500 million and $750 million—a total of $1.55 billion. This commitment will be extended to $2.55 billion, with further funding to be considered in future budgets. These funds will be allocated flexibly over time according to the profile of projects contracted under the Emissions Reduction Fund.
The three principles in the design of the Emissions Reduction Fund were:
• Lowest-cost emissions reductions: the Emissions Reduction Fund will identify and purchase emissions reductions at the lowest cost.
• Genuine emissions reductions: the Emissions Reduction Fund will purchase emissions reductions that make a real and additional contribution to reducing Australia’s greenhouse gas emissions.
• Streamlined administration: the Emissions Reduction Fund will make it easy for businesses to participate.
The Emissions Reduction Fund has three elements:
• crediting emissions reductions
• purchasing emissions reductions, and
• safeguarding emissions reductions.
A copy of the White Page can be downloaded from www.environment.gov.au/resource/emissions-reduction-fund-white-paper