Australia’s carbon market on track for growth year in 2021

The Morrison Government’s emissions reduction schemes are on track to drive down Australia’s emissions by as much as 57 million tonnes in 2021, according to the Clean Energy Regulator’s latest Quarterly Carbon Market Report.

This would represent a 7 per cent increase on 2020, demonstrating the ongoing success of the Government’s initiatives, including the Emissions Reduction Fund (ERF).

The Regulator expects the ERF to credit 17 million tonnes of emissions reductions (Australian Carbon Credit Units or ACCUs) in 2021, which would eclipse the record 16 million tonnes recorded last year. A total of 44 projects were registered under the ERF between January and March – the largest first quarter result on record.

There was continued strong growth in rooftop solar during the first quarter, with an estimated 792 megawatts (MW) installed. Up to 4 gigawatts (GW) of rooftop solar capacity is expected to be added in 2021.

This builds on Australia’s recent strong results in renewables, including the record 7.0 GW of renewables capacity added in 2020 and news that Australia has added the highest wind and solar capacity per capita of any developed nation over the past three years at 578 watts per person.

Minister for Energy and Emissions Reduction Angus Taylor said this is further proof the Morrison Government’s approach to reducing emissions through technology not taxes is working.

“More and more Australians are choosing rooftop solar as the costs come down and it makes economic sense for them,” Minister Taylor said.

“The Morrison Government is looking to get the next wave of clean energy technologies to commercial parity with higher emitting alternatives so we can reduce emissions across every sector of the economy, while protecting industries and jobs, and creating new ones.

“As we secure Australia’s economic recovery from COVID-19, the Government is committed to reducing emissions without imposing new costs on households, businesses or the economy.

“We won’t force regional communities and industries to wear the costs of reducing emissions.

“In Australia we will do this by investing and partnering in the technology breakthroughs needed to reduce and offset emissions in a way that enables our heavy industry, jobs and living standards, especially in regional Australia, to continue and keep energy costs down.”

New initiatives under development will only strengthen our emissions reduction efforts, including an Australian Carbon Exchange and the Corporate Emissions Reduction Transparency report.

These initiatives will provide increased transparency to Australia’s carbon market and support voluntary ambition to reduce emissions.

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