Emissions Reduction Fund

The Emissions Reduction Fund provides businesses with the opportunity to earn Australian carbon credit units for every tonne of carbon dioxide equivalent a business stores or avoids emitting through adopting new practices and technologies.

Application detail:

Applications may be made at any time.

What do you get?

Australian carbon credit units (ACCUs).

Who is this for?

Businesses wanting to reduce their carbon emissions.


The Emissions Reduction Fund is a scheme that provides financial incentives to organisations and individuals to use new practices and technologies in their business, so they can reduce their greenhouse gas emissions and improve their energy efficiency.

Participants in the scheme can earn Australian carbon credit units (ACCUs) for every tonne of carbon dioxide equivalent they store or avoid emitting. ACCUs can be sold and can generate participants an income.

To ensure emissions reductions aren't displaced by a rise in emissions elsewhere in the economy, the Emissions Reduction Fund includes a safeguard mechanism, which encourages large businesses to keep their emissions within historical levels.

The Emissions Reduction Fund does not provide funding to participants, but it does provide participants the opportunity to earn ACCUs which can be sold to generate income.

An emissions reduction or avoidance project must first be registered, then participants can apply to participate in an auction for the chance to enter into a carbon abatement contract with the Clean Energy Regulator and sell their ACCUs. ACCUs may also be sold on the secondary market.

What are the eligibility criteria?

Participation in the Emissions Reduction Fund is open to individuals, sole traders, companies, local, state and territory government bodies and trusts.

For a project to be able to register with the Clean Energy Regulator under the Emissions Reduction Fund (unless specified otherwise), it must:

  • not have started before it has been registered (the newness requirement),
  • not be required to be carried out by or under Australian law (the regulatory additionality requirement), and
  • not be carried out under another government programme (the government program requirement)

How do you apply?

There are four steps in the application process:

  1. Join the Emissions Reduction Fund scheme by registering yourself and your project with the Clean Energy Regulator.
  2. Secure a contract with the Clean Energy Regulator by bidding at an auction.
  3. Run your project and provide project reporting and auditing when scheduled.
  4. Claim ACCUs for your project's emissions reductions and be paid for the ACCUs sold

Find out more about eligibility and how to apply at Emissions Reduction Fund.

Financial incentives for businesses to reduce their carbon emissions