Fourth Emissions Reduction Fund auction to be held in November

The Clean Energy Regulator (CER) will hold the fourth Emissions Reduction Fund auction from 16–17 November. The auction format will remain largely unchanged from previous auctions, though the auction guidelines give the CER some additional flexibility to choose the volume of offered abatement it will accept.

Anyone who plans to bring a new project to the fourth auction must apply for project registration by 4 October at midnight AEDT. Processing times will vary depending on the quality and complexity of the application, and the volume of applications received. Project applications submitted after 4 October, or those that require further information to be completed, will not be eligible for the fourth auction but may participate in future auctions.

The fourth auction guidelines and other relevant information can be found on the Clean Energy Regulator website.

The CER has also released a market sounding paper to gauge the potential to purchase carbon abatement from certain types of projects other than through an auction. The Carbon Credits (Carbon Farming Initiative) Rule 2015 provides the CER with the ability to purchase carbon abatement through an auction or other purchasing process.

“It is possible that we have not yet tapped into all segments of the market that are capable of delivering large volumes of well-priced abatement,” said CER Chair Chloe Munro.

“With more than $800 million remaining to be allocated, now is the time to consider whether to vary our purchasing approach in the future. With the price information available to us from four auctions, we will be in a strong position to assess whether an abatement offer made outside an auction represents value for money.

“We are particularly interested in assessing whether large industrial projects are inhibited from participation in the Emissions Reduction Fund by the auction process itself.”

The market sounding process is now open and will close on 14 October. The Clean Energy Regulator will publish the results of the market sounding after the fourth auction has concluded.