The second Emissions Reduction Fund auction, conducted by the independent Clean Energy Regulator, has awarded contracts for 45.5 million tonnes of emissions reduction at an average price of $12.25 per tonne.
The second auction has delivered an even lower average cost per tonne of abatement than the first auction, where 47 million tonnes of emissions reduction were secured at $13.95 a tonne.
Contracts were awarded to 77 organisations covering 131 projects, including 33 bushfire prevention projects which will reduce emissions by nearly 7 million tonnes. Indigenous groups will play a significant part in this.
The Government has now secured 92.8 million tonnes of emissions reduction through the ERF at an average price of $13.12. This is 1 per cent of the cost per tonne of abatement under the carbon tax.
This work builds on the success to date in helping to meet and beat Australia’s 2020 target and in working towards our 26-28 per cent 2030 target.
In the lead up to Paris, this Government has once again demonstrated that we can significantly reduce emissions and tackle climate change without a carbon tax and increased electricity prices.
I look forward to highlighting the success of the fund when I return to the Paris climate change talks later this month and outline Australia’s strong suite of policies to reduce emissions.
The results today are further proof that we have one of the most effective systems in the world for significantly reducing emissions.
The World Bank recently launched a $100 million reverse auction that replicates many features of the Emissions Reduction Fund.
We will achieve our 2030 target, but unlike Labor, we’ll do it without a job-destroying carbon tax that pushes up electricity prices for families and business.
Details about the successful projects are available from the Clean Energy Regulator’s website.
Further information on the Emissions Reduction Fund is available at environment.gov.au/emissions-reduction-fund