Emissions Reduction Fund provides a further boost to the Orana regional economy


Emissions Reduction Fund provides a further boost to the Orana regional economy

The third Emissions Reduction Fund auction was held on 27-28 April, with results announced on 5 May.  Regional Development Australia Orana is delighted that the region has been able to build on the successes in the previous two rounds and again secure a significant proportion of the funds on offer. 

Nationally, there were 617 eligible projects registered for Auction 3.  Of these, at least 153 are readily identifiable as being located wholly or partially within the Orana region.  Successful projects in Auction 3 employed fewer method types than Auction 2; of the 73 successful projects, 46 were vegetation related methods, 12 were savanna burning in Northern Australia, and a further 10 relate to waste and/or landfill management.  Agriculture and energy efficiency methods only comprised 2 and 3 projects respectively. Over 90% of the carbon abatement contracted in Auction 3 will come from vegetation/sequestration methods, compared to around 60% in each of the previous auctions.

According to information released by the Clean Energy Regulator, 73 projects were successful in the third auction, committing to a combined abatement or sequestration of over 50 million tonnes of carbon dioxide equivalent with a combined value of almost $516 million.  The average price paid under these contracts is $10.23, compared to $13.95 in the first auction and $12.25 in the second auction.

There were 31 successful projects in the Orana region, which together commit to sequestration or abatement of over 13 million tonnes of carbon dioxide equivalent.  At an average price of $10.23 per tonne, these projects will generate over $135 million over the ten years of the contracts.  The previous auctions are estimated to have generated contracts worth approximately $366 million, with significant flow-on effects expected throughout the regional economy.

“Bourke Shire was again the most successful of the Orana shires, with 17 successful projects” said RDA Orana Chair, John Walkom.  “However, it’s great to see projects located in the Warren/Coonamble Shires and Dubbo/Narromine/Wellington Councils securing contracts also.  While Human Induced Regeneration of previously cleared areas was again the dominant method used in successful projects, for the first time reforestation/afforestation and beef cattle herd management methods are also represented.” 

“RDA Orana has been working for some time now on raising awareness of the opportunities provided by the ERF and other carbon abatement and energy savings schemes.  It is pleasing to see that the Orana region is again well represented in the ranks of successful projects, and that a wider range of methods is starting to appear,” John said. “With $816 million remaining in the Emissions Reduction Fund, there are still opportunities for businesses in a range of sectors to participate; just contact RDA Orana for more information.”

Media contact:

Robyn Lamont, Acting EO (02) 6885 1488

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