The Emission The ERF is a voluntary Responsible entities Reduction Fund scheme that aims to generating ACCUs from (ERF) provide incentives for a emissions reduction range of organisations projects occurring within Australian Carbon and individuals to adopt their boundary can claim Credit Units (ACCUs) new practices and the reduction as part of their technologies to reduce carbon account only if the their emissions. ACCUs from the projects Participants can earn are voluntarily retired. ACCUs for emissions If the ACCUs are not reductions. retired, responsible entities The can be sold to are required to account for the Commonwealth their emissions without the under a carbon reductions associated with abatement contract the projects (i.e. as though with the Clean Energy the projects had never Regulator, or they can occurred). be sold on the voluntary market and are eligible as offset units under the National Carbon Offset Standard. State-based energy These energy savings Responsible entities are not efficiency schemes, schemes reduce required to account for including the electricity consumption state-based energy Victorian Energy by creating financial efficiency schemes. Efficiency Target incentives for Emissions reductions (VEET), the New organisations to invest resulting from activities South Wales Energy in energy savings supported by these Savings Scheme projects. Energy schemes can be counted (ESS) and the South savings are achieved towards the carbon account Australian Retailer by installing, improving regardless of whether any Energy Efficiency or replacing energy associated certificates have Scheme. savings equipment. been created, sold or This generates tradable transferred to any other Energy Efficiency white certificates. party. Certificates Worked examples Note that the following notations and assumptions have been used in the examples presented below: 1. BTMuse = Behind the electricity consumed 2. Grid factor (scope 2) - simplified to 1t CO2-e/MWh
The Emission Reduction Fund (ERF) Australian Carbon Credit Units (ACCUs) The ERF is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. Participants can earn ACCUs for emissions reductions. The can be sold to the Commonwealth under a carbon abatement contract with the Clean Energy Regulator, or they can be sold on the voluntary market and are eligible as offset units under the National Carbon Offset Standard. Responsible entities generating ACCUs from emissions reduction projects occurring within their boundary can claim the reduction as part of their carbon account only if the ACCUs from the projects are voluntarily retired. If the ACCUs are not retired, responsible entities are required to account for their emissions without the reductions associated with the projects (i.e. as though the projects had never occurred). State-based energy efficiency schemes, including the Victorian Energy Efficiency Target (VEET), the New South Wales Energy Savings Scheme (ESS) and the South Australian Retailer Energy Efficiency Scheme. Energy Efficiency Certificates These energy savings schemes reduce electricity consumption by creating financial incentives for organisations to invest in energy savings projects. Energy savings are achieved by installing, improving or replacing energy savings equipment. This generates tradable white certificates. Responsible entities are not required to account for state-based energy efficiency schemes. Emissions reductions resulting from activities supported by these schemes can be counted towards the carbon account regardless of whether any associated certificates have been created, sold or transferred to any other party. Worked examples Note that the following notations and assumptions have been used in the examples presented below: 1. BTMuse = Behind the electricity consumed 2. Grid factor (scope 2) - simplified to 1t CO2-e/MWh
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