Project Requirements for Emissions Reduction Fund

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The Federal Government has released the details and methods of how land and sea transport operators can claim funds from the Emissions Reduction Fund by crediting emission reductions.

The methods released include

  • Replacing Existing Vehicles
  • Modifying Existing Vehicles
  • Changing Energy Sources
  • Changing Operational Practices


Operators can receive funding by submitting emission reduction projects into a competitive auction run by the Clean Energy Regulator, who just recently pushed back the date for the first auction – previously expected to be held in March but now is scheduled to be held on Wednesday, April 15th.

The delay in finalising the methods was believed to be the reason for pushing back the auction date. At the time of pushing back the auction there were only three reduction methods that had been formerly declared.

The release of the transport methods for land and sea operations highlights certain criteria that must be met for transport applicants that apply as an individual business or as an amalgamation.

The methodology provides for crediting emissions reductions based on changes to emissions intensity rather than changes to absolute emissions. The service unit for the freight industry is to be reductions in emissions per tonne-kilometre (tkm).

Any submission to the Clean Energy Regulator is also to have to take into account methane (CH4) and nitrous oxide (N20) reductions as well as carbon dioxide (CO2) from fuel combustion for transport purposes, and scope 2 emissions from electricity when it is used as a transport fuel.

When submitting on any of the method abatement strategies two general project types may be utilised – “A Group of Vehicles Project” and an “Aggregated Individual Vehicles Project”.

What may be an issue for certain transport and logistics operators considering applying to the Clean Energy Regulator is the need to provide three years of data in the calculation of carbon dioxide equivalent net abatement. The measure was inserted to ensure that data on which their application baseline is derived reflects recent actual performance. Some may have issues with providing three years of data as the methodology is new and the data may not have been historically collected in the past. This may result in some unnecessary postponement of certain projects due to needing to wait the three years to collect the required historical data.

The Carbon Market Institution recently held Emissions Reduction Fund Information sessions throughout the country to update business on developments. As a follow-up to those sessions they have made available their presentation and linked to other important sources of information on the ERF.

CMI Presentation – the most recent presentation by CMI given at the sessions is now available on their website at



Sources of information –

information on the Emissions Reduction Fund can be found at:






To subscribe to receive ERF updates from the Department of the Environment, visit

To subscribe to receive ERF updates from the Clean Energy Regulator, visit



Professional services contacts – If you would like to contact any professional services firms to assist you with participating in the ERF,CMI invite you to visit the CMI Members Directory or contact CMI. 

The CMI Presentation in particular is a great source of information for businesses that would like to understand how they can take part in the ERF and what processes they must undertake.


To find out more see




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