31 August 2017
The Climate Change Authority today released a paper for consultation on its review of the Carbon Farming Initiative legislation, which governs the Emissions Reduction Fund.
The Chair of the Climate Change Authority, Dr Wendy Craik said: “The Authority is required to review the CFI legislation and the Emissions Reduction Fund every three years. The ERF has been in place for a while now so it’s a good opportunity to do a stock-take and see how it’s working."
The Authority looked at the role the ERF could play in helping to meet Australia’s Paris targets in its 2016 Special Review on Australia’s climate goals and policies and remains of the view that those findings are still current.
“Basically we said that the ERF should keep going until other emissions reduction policies like an Emissions Intensity Scheme or a Clean Energy Target and vehicle emissions standards are put in place.”
“The Authority does see a role into the future for the sort of offset crediting arrangements the ERF uses for the land sector.” Dr Craik said.
The key question for the Authority in this review is whether the ERF is being well administered and achieving its objectives.
Offsets need a clear and robust set of rules if they are to achieve genuine environmental outcomes but excessively restrictive rules and regulations can act as a barrier to participation.
The Authority’s CFI legislation review will examine whether current policy settings for the ERF have struck the right balance between the goals of market participation, administrative efficiency and environmental integrity.
The Authority is keen to understand if rules and processes for the ERF are working well for scheme participants and whether the scheme administrator, the Clean Energy Regulator, has enough of the right tools for the job of ensuring compliance with the scheme.
The Authority encourages submissions from individuals and organisations with an interest in the ERF and emissions reduction policy by 29 September 2017. Submissions on this paper will inform the Authority’s final review report on the ERF, which is due by 31 December 2017.
The consultation paper is available at www.climatechangeauthority.gov.au
Media contact: Aileen Muldoon
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