Diverse businesses take second helping of the carbon pie


Diverse businesses take second helping of the carbon pie

There is a common misconception in the region that only ‘farmers who lock up land’ can successfully participate in the Emissions Reduction Fund. The results of the second auction show that this is not the case.

In early November, the Clean Energy Regulator conducted the second auction of carbon abatement contracts under the Commonwealth Government’s Emissions Reduction Fund (ERF). Comparison with the results of the first auction, held in April 2015, shows some interesting developments. One of the most important of these is the successful participation of projects in a wider range of methods.

While vegetation-based methods that sequester carbon still dominated the successful projects, landfill and waste management methods that comprised 38% of abatement purchased in the first auction fell to just 8% this time.

Savannah burning, agriculture (eg. Piggery and dairy waste management) and transport methods collectively contributed just 2% of the April total, but rose to 26% of purchases in November, while energy efficiency projects and industrial fugitives were not represented at all in the first auction, but together made up 10% of the total abatement purchased in the second auction.

So what does this mean for your business?

This is a clear indication that a wider range of industry sectors is recognising the opportunities afforded by the ERF to diversify income and offset the costs of technology upgrades and management changes.

The range of available methods, and therefore opportunities for participation, is expanding rapidly. The Clean Energy Regulator has published a list of priorities being considered for method development, and releases drafts of new or amended methods for public comment. Information is available from the the Clean Energy Regulator.

Additional information is available from RDA Orana’s website or by contacting our office.

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