Joint release with Assistant Minister to the Minister for Industry, Energy and Emissions Reduction the Hon Tim Wilson MP
Australia's world leading voluntary offset scheme, the Emissions Reduction Fund (ERF), continues to go from strength to strength.
Around one in six of the ERF's 1,074 projects were registered this year, as the Government's commitment to developing new methods and increasing supply stimulates private sector activity.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the ERF was an essential part of the Government's Long Term Emissions Reduction Plan.
"Our Plan backs technology not taxes, and choices not mandates," Minister Taylor said.
"We want to get the cost of low emissions technologies to parity or better, so that Australian households and businesses can adopt them where it makes sense for them to do so.
"The Emissions Reduction Fund is an integral part of our toolkit. It is a voluntary incentive to support uptake of technologies as they approach commercial parity.
"At current spot prices, 95 per cent of the 21 million tonnes of ERF abatement contracted since March 2020 will be underwritten by the Government at no cost to the taxpayer.
"Unlike a carbon tax, the ERF doesn't impose new costs on households, businesses or the economy.
"Anthony Albanese has already confirmed a future Labor government would abolish the ERF.
"The only alternative to a voluntary incentive like the ERF is a carbon tax."
Assistant Minister to the Minister for Industry, Energy and Emissions Reduction Tim Wilson said: "The ERF has proven cutting emissions across the whole economy can be cost effective when government and business partner together.
"Labor are stuck in the past and not committed to solutions that back Australian businesses to be part of a carbon neutral future and grow jobs."
According to the Clean Energy Regulator's latest Quarterly Carbon Market Report, 54 new ERF projects were registered in the September quarter and 145 in the first three quarters of 2021.
This week, a new ERF soil carbon method entered into force. The new method has been under development since late 2020 and will reduce the cost of soil sampling by up to 90 per cent. As at end of November, 104 of the 184 new ERF project registrations in 2021 were soil carbon projects.
Analysis for the Government's Long Term Emissions Reduction Plan shows soil carbon sequestration could reduce Australia's emissions by between 17 million tonnes and up to 100 million tonnes, while boosting soil health and productivity.
In October, the Government announced a new method to support carbon capture and storage (CCS) projects. In response, Santos and Beach Energy committed $220 million to develop Australia's first CCS hub at Moomba, South Australia. The investment will create up to 230 direct jobs and reduce emissions from gas production by 1.7 million tonnes per annum, with the hub expected to be operational by 2024.
The supply of Australian Carbon Credit Units (ACCUs) is expected to reach a record 17.3 million units this year, up from 16 million in 2020. To date the ERF has delivered more than 100 million tonnes of abatement.
The report also shows renewable energy accounted for 32 per cent of all electricity generated in the National Electricity Market (NEM) in the September quarter, with rooftop solar driving much of the increase. Australia is on track to see an average of 30 per cent renewable generation in the NEM in 2021.
One third of Australian houses now have rooftop solar, with installations expected to reach a record 3.2 gigawatts (GW) in 2021. Australia leads the world on rooftop solar generation capacity of 15.6 gigawatts of capacity.
The Clean Energy Regulator predicts 2021 will be another big year for large-scale renewable energy construction, with 1.1 GW of large-scale projects taking a final investment decision in the September quarter.
Minister Taylor's office 02 6277 7120
