Emissions Reduction Fund auction timing announced

The Clean Energy Regulator has announced today that the next Emissions Reduction Fund auction will be held on 25–26 March 2020.

David Parker, Chair of the Clean Energy Regulator said, “We will continue to hold regular auctions at times that are more convenient for all participants—in March and September each year.”

“We know that the end of financial and calendar years are very busy times for many and moving to a March/September cycle will benefit many who want to participate in the auctions,” Mr Parker said.

The decision to shift the timing responds to feedback the Clean Energy Regulator received from industry. “It also means that more of the enhancements and new measures we are implementing under the Climate Solutions Fund will be available to those intending to participate in the next auction in March 2020.”

The shift in auction timing also allows time for the Government to consult with industry on changes to how abatement is estimated for some Emissions Reduction Fund projects, which use the FullCAM carbon accounting model.

FullCAM is the model used to construct Australia’s national greenhouse gas emissions account for the land sector. FullCAM is also used to generate abatement estimates for several types of vegetation projects under the Emissions Reduction Fund.

The model has been updated using the latest CSIRO research and extensive new information about vegetation growth.

This update supports the environmental integrity of the Emissions Reduction Fund, which is one of its great strengths.

The Clean Energy Regulator continues to encourage investment in emissions reduction projects and support participation in the scheme through extension and outreach, market development and market innovation activities.

The Clean Energy Regulator will also enhance some of the auction rules to allow for greater participation. A key development will be not setting a benchmark price for the auction, which means all eligible auction bids will be considered. This auction will retain all of the flexible contracting options previously offered, including partial contracts and contracts for immediate delivery.

The Clean Energy Regulator will continue to assess all eligible bids based on their merit.

“I again encourage interested participants to come forward at this auction and bid at the lowest price you can—the record shows there is a high probability of getting a contract if you bid competitively.” Mr Parker said.

The auction guidelines and details about the auction process is available on Participating in an auction.

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For any questions on updates to FullCAM, please contact the Department of the Environment and Energy.