The Morrison Government has today released for public consultation a draft carbon capture and storage (CCS) method for the Emissions Reduction Fund (ERF).
Accelerating the commercial deployment and uptake of CCS will help to significantly reduce Australia's emissions while protecting industries and jobs, and creating new ones.
CCS is one of five priority methods being developed in 2021 under the ERF and it is a priority area under the Government's Technology Investment Roadmap.
Minister for Energy and Emissions Reduction Angus Taylor said the ERF was one of the world's most rigorous carbon offset programs and accelerating new projects to unlock the emissions and economic benefits of carbon capture technology was a focus of the Morrison Government.
"Australia consistently meets and beats our emissions reduction targets and we do that without imposing new costs or taxes on households or businesses," Minister Taylor said.
"The Emissions Reduction Fund is central to our technology, not taxes approach to reducing emissions. We are continuing to support farmers, businesses and communities to adopt new technologies that reduce emissions and boost their economic opportunities.
"Including CCS projects under the ERF will help unlock more low-cost abatement for Australia, underpin new and expanding industries, and lead to job creation and economic opportunities, including in regional areas."
The International Energy Agency and the Intergovernmental Panel on Climate Change both regard carbon capture technologies as essential to achieve the goals of the Paris agreement.
Fast-tracking the development of new ERF methods was a recommendation of the King Review and will help achieve a greater range of low-cost abatement through the scheme.
Through the 2020-21 Budget, the Government committed more than $40 million of additional resourcing to the Clean Energy Regulator to halve the development time of new ERF methods to less than 12 months.
In addition to CCS, new methods being developed this year include blue carbon, soil carbon, biomethane or green gas, and plantation forestry.
The Clean Energy Regulator develops priority methods through a co-design process with industry, potential end-users, scientists and technical experts, and the Emissions Reduction Assurance Committee.
The Government welcomes input from industry and other stakeholders to finalise the development of the CCS method. To contribute to the consultation process, visit: https://consult.industry.gov.au/cer/carbon-capture-and-storage-draft-method
Submissions are open until 27 July 2021.
