Emissions Reduction Fund

​​​​The Emissions Reduction Fund is a voluntary scheme that provides ongoing opportunities for farmers and land managers to participate in emissions reduction and carbon sequestration (capture and storage of carbon) projects.

The aim of the Emissions Reduction Fund is to reduce emissions at lowest cost and contribute towards Australia’s emissions reduction target of 26 to 28 per cent below 2005 levels by 2030.

Through the Emissions Reduction Fund, the Australian Government will purchase lowest cost emissions reductions and sequestered carbon from across the economy, providing an incentive to businesses, households and landowners to proactively reduce their emissions or sequester carbon.

Under the scheme, landowners and farmers who adopt approved Emission Reduction Fund methods can earn Australian Carbon Credit Units which can be sold to provide alternative or additional income streams, while benefitting the environment.

Emissions reduction methods set out the rules for estimating emissions reductions from different activities. There are a number of approved methods available for agriculture and vegetation management; these are available on the Department of the Environment and Energy’s website.

Administration of the Emissions Reduction Fund

The Department of the Environment and Energy is developing new methods for businesses to use to estimate emissions reductions.

The Clean Ener​gy Regulator administers the Emissions Reduction Fund, manages contracts and runs auctions.

AusIndustry can provide advice on the application requirements and help identify emissions reduction opportunities: business.gov.au and 13 28 46.

Emission Reduction Fund Plantation Forestry Notification

The Plantation Forestry Methodology Determination, also known as the Emissions Reduction Fund Plantation Forestry Method, provides a mechanism to increase carbon sequestration through either the establishment of a new plantation forest, conversion of a short-rotation plantation to a long-rotation plantation, or maintenance of a pre-existing plantation forest that meets the eligibility requirements of the method but was established under another determination.

Proponents who are considering undertaking a new plantation forest or an expansion of an existing plantation forest/s may consider seeking approval from the Clean Energy Regulator to declare the proposed project/s as an Emissions Reduction Fund Plantation Forestry Project and generate Australian Carbon Credit Units.

To complement the eligibility requirements of the Emissions Reduction Fund Plantation Forestry Method, the Australian Government Minister responsible for Agriculture, Water and the Environment assesses whether a proposed project/s may lead to an undesirable impact on agricultural production in the region in which the project would be located. In order to assess the potential for a proposed project to have undesirable impacts on agricultural production, anyone considering undertaking an Emissions Reduction Fund Plantation Forestry Project that converts non-forest land to forest is required to submit an Emissions Reduction Fund Plantation Notification to the Department of Agriculture, Water and the Environment. For further information on notification requirements please visit: Emission Reduction Fund Plantation Notifications.

More information

For more information about the Emissions Reduction Fund and methods, please visit the Department of the Environment and Energy website or phone 1800 852 974.

For information about participating in the Emissions Reduction Fund, please visit the Clean Energy Regulator website or phone 1300 553 542.

Last reviewed: 4 February 2020
Thanks for your feedback.
Thanks! Your feedback has been submitted.

We aren't able to respond to your individual comments or questions.
To contact us directly phone us or submit an online inquiry

Please verify that you are not a robot.