Just hours after releasing draft legislation to "axe the
carbon tax", the Federal Government has launched a
consultation to seek community input on the design of a proposed
Emissions Reductions Fund (Fund) to form the centerpiece of the
Coalition's 'Direct Action Plan' environment
The Fund is being billed as an 'abatement buy back'
mechanism that will provide incentives for carbon emission
reduction projects across Australia. It will operate with an
initial budget of AUD300 million in the first year, AUD500 million
in the second year and AUD750 million over the following two
Submissions received on the Terms of Reference will provide
input into the development of a Green Paper due to be released in
December this year that will set out a 'first draft' of the
Government's preferred Fund design. Another period of
consultation will culminate in a White Paper scheduled for
completion in early 2014 with the Fund due to commence on 1 July
2014. The Fund will almost certainly require legislation to bring
it into existence and passing that legislation will raise the same
hurdles as is discussed in our
Legal Insight on the proposed termination of the carbon
Interested parties have just over a month to formulate a
submission on the following points:
the likely sources of low cost, large scale abatement to come
forward under the Emissions Reduction Fund
how the Emissions Reduction Fund can facilitate the development
of abatement projects, including through expanding the Carbon
Farming Initiative and drawing on the National Greenhouse and
Energy Reporting Scheme
the details of auction arrangements to deliver cost effective
the governance arrangements that will support the Emissions
Reduction Fund, including the role of key institutions such as the
Clean Energy Regulator
the details of the monitoring, verification, compliance and
payments arrangements for successful bidders at auction
transitional issues relating to the existing Carbon Farming
the design and operation of a mechanism applying to emissions
above the business as usual baseline.
The submission period closes at 5pm (AEDT) Monday 18 November
2013. Click here for more information.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This legal update is an overview of existing eligible project activities and new project types proposed to be developed.
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