The 9th Emissions Reduction Fund (ERF) Auction, conducted by the Clean Energy Regulator, will see the purchase of 59,000 tonnes of abatement at an average carbon price per tonne of $14.17. Results from previous auctions can be compared below.
A press release issued by the Carbon Market Institute (CMI), Australia’s peak industry group for business and climate change, said this week's release of surprisingly small results from the 9th ERF Auction presented an opportunity for the Government.
ERF Auction results highlight need for climate policy reboot (CMI)
CUMULATIVE ERF AUCTION RESULTS TO DATE
Cumulative results to date show an average carbon price of $12.02 with an increase in price for carbon since a dip at the 3rd ERF auction. Market estimations are trending for a price past the $20 mark and in 2025 a price of $26 per unit can be expected based on current trajectory.
The Australian government's "Safeguard Mechanism" protects taxpayers funds, by ensuring that emissions reductions paid for through the crediting and purchasing elements of the Emissions Reduction Fund are not displaced by significant increases in emissions above business-as-usual levels elsewhere. This means that the largest emitters will have to keep emissions in check. Strengthening post 2020 carbon emission baselines for business covered under the Safeguard Mechanism potentially stimulates the marketplace. The challenges of carbon unit supply can be addressed through the Safeguard Mechanism in addition to the government's commitment of an additional $2 billion from their Climate Solutions Package.
Overseas Markets and the Voluntary Market via voluntary offsets is one to watch out for, more to come as we observe QANTAS, Meat & Livestock Australia (MLA), BHP, local and state governments as well as organisations commitments to emission reductions.
EMISSIONS REDUCTION FUND PERFORMANCE TO DATE
Bootstrap Environmental Services Continues to Provide Soil Sampling Services to the Industry
We continue to provide services to the industry and farmers wishing to enter the ERF in order to receive carbon credits generated from soil carbon farming projects using the Agricultural Systems Methodology. We provide soil science sampling services that are audit ready and compliant with methodology. We have worked on a large number of projects in Victoria, New South Wales and South Australia.
Contact Bootstrap Environmental Services for more information on soil carbon farming and soil sampling services. We sampled the World's First Soil Carbon Project to be awarded carbon credits that are eligible under the Paris Agreement and we continue to sample this and many other ongoing projects.
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