The Results are in for ERF Auction Round 2


The Results are in for ERF Auction Round 2

The results of the second Emissions Reduction Fund auction were announced yesterday. After projects in the Orana region secured a large chunk of the available funds in the first auction, Regional Development Australia Orana was confident that the region could build on this success in the second round – and it has.

“Prior to the second auction, there were 533 eligible projects registered nationally, of which 116 are located in shires within the Orana Region. All of the Orana projects are related to vegetation methods, with Human Induced Regeneration of previously cleared areas overtaking Avoided Deforestation of scrubby areas as the most popular method. Bourke Shire is leading the way with 46% of projects in the Orana – Cobar Shire is close behind with 36%” said CEO, Felicity Taylor Edwards.

“According to information released by the Clean Energy Regulator, 131 projects were successful in the second auction, committing to a combined abatement of over 45 million tonnes of carbon dioxide equivalent. The combined value of the projects is almost $557 million; the average price paid under these contracts is $12.25, compared to $13.95 in the first auction. 38 new contracts were awarded in NSW, mainly from vegetation and waste methods. Of these, 17 are in the Orana region, all using the “Human Induced Regeneration” method, which allows the re-establishment of “forest” on previously cleared areas. Bourke Shire performed best, with 12 successful projects. At an average price of $12.25 per tonne, these projects will provide substantial income for participants for the life of the contracts. Depending on how the successful participants choose to use their funds, there is also likely to be a significant flow-on effect in the local and regional economy.

The Emissions Reduction Fund is an opportunity that has been seized by a number of landholders. In this auction, 25.6 million tonnes of abatement have been secured Australia-wide through vegetation methods, which are those methods most closely linked to the agricultural sector. That equates to over $313m going into rural Australia from this auction. “RDA Orana has been focused on raising awareness of this diversification opportunity and it is now paying dividends” Felicity said.

However, carbon sequestration through vegetation is only one part of the ERF - there is a range of approved methods providing scope for other industry sectors to get involved, and new methods are regularly added. There are also other carbon abatement funds providing opportunities through conversion to renewable energy sources and increased energy efficiency. As Felicity said, “Regional Development Australia Orana wants to encourage participation from all sectors of the economy. Just contact us for more information.”

“We can assist businesses wanting to learn more about the ERF and other carbon abatement funds, and link them with potential partners for aggregated projects as well as consultants to develop their projects. The impact of the second round will build on the significant injection of funds into the region from the first auction. Benefits will be seen for years to come. We will do our best to inform the region in the hope that we can keep the momentum going in future auction rounds.”

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