Direct Action's Emissions Reduction Fund begins to take shape with release of Green Paper

Key Points:

The current public consultation period provides businesses an opportunity to comment on and potentially influence the design of the proposed Emissions Reduction Fund, the centrepiece of the Federal Government's Direct Action Plan.

With efforts underway to abolish the Carbon Pricing Mechanism (CPM) implemented under the Clean Energy Act 2011 (Cth), the Federal Government continues to progress its Direct Action Plan, to reduce Australia's domestic greenhouse gas emissions.

At the heart of the Direct Action Plan is the proposed Emissions Reduction Fund (ERF). The ERF aims to provide a pool of capital for the Clean Energy Regulator to purchase lowest cost emissions reductions or abatement (consisting of an initial allocation of $300 million).