Fed Emissions Reduction Fund (2015)

Policy Description

The Emissions Reduction Fund (ERF) was a voluntary scheme introduced by the Australian Government in 2015, which provided incentives for organizations to adopt new practices and technologies to reduce their emissions. Participants could earn Australian carbon credit units (ACCUs) for emissions reductions, which could be sold to the government or to other businesses in the secondary market. A key component of the ERF is the Carbon Farming Initiative, a similar mechanism set up in 2011 to allow the agriculture and land sectors to earn carbon credits by changing land use or management practices in order to store carbon or reduce greenhouse gas emissions. In the Final Report of the 2017 Review of the Emissions Reduction Fund, the Climate Change Authority recommended that the government not rely on the ERF to reduce emissions, and instead introduce new policies aimed at decarbonization and structural change.

InfluenceMap Query

Emissions Trading; GHG Emission Regulation

Policy Status

Active

Lobbying Overview

  • The evidence collected on corporate and industry lobbying on Australia’s ERF from 2013-2020 indicates that the majority of lobbying has been supportive. For example, AGL Energy and Woodside lobbied to expand the ERF to more sectors, while Boral and Energy Networks Australia advocated to transition the ERF into a baseline and credit scheme.
  • InfluenceMap did not find any evidence of opposition to the ERF, but there were 11 cases of entities lobbying for provisions to weaken the scheme, for example through the unrestricted use of international credits (Chamber of Minerals and Energy of Western Australia) and expanding the exemptions for EITE industries to the coal industry (Peabody).

Evidence Profile

01010341

Policy Progress

In February 2019, the ERF was rebranded as the Climate Solutions Fund as part of the government’s Climate Solutions Package. The Climate Solutions Fund totals $2 billion over fifteen years, which is a reduction in the annual budget compared to the ERF. The Climate Solutions Package also included support for new energy efficiency measures, funding to develop a national strategy for electric vehicles, and further investment and support for pumped hydro projects such as Snowy 2.0 and Marinus Link.

Entities Engaged on Policy

The table below lists the entities tracked by InfluenceMap which have publicly engaged with the policy. InfluenceMap tracks around 300 companies and 150 industry associations globally. Each entity links back to the entities’ full InfluenceMap profile, where the evidence of its engagement can be found.

InfluenceMap Performance Band
Organization
Sector
Headquartered
B
Carbon Market Institute All Sectors Australia
D+
Gas Energy Australia Energy Australia
D-
Woodside Energy Australia
D
Business Council of Australia All Sectors Australia
E
Chamber of Minerals and Energy of Western Australia (CME) Materials Australia
D+
Boral Limited Materials Australia
C-
Woolworths Ltd Consumer Staples Australia
D-
Australian Petroleum Production & Exploration Association (APPEA) Energy Australia
D-
Minerals Council of Australia (MCA) Materials Australia
D-
ConocoPhillips Energy United States
C
AGL Australia Utilities Australia
C-
Origin Energy Energy Australia