Emission Reduction Fund for business FAQs
The Government's Emissions Reduction Fund is offering businesses the chance to get involved with the national initiative to reduce emissions and clean up our environmental act. It is a carbon credit scheme which is intended to motivate businesses into taking action, rather than punishing them.
What is a carbon credit scheme?
Carbon crediting is an international movement which strives to put a cap a business's emissions in an attempt to manage output of carbon and greenhouse gas. A carbon credit is the equivalent to a unit of one tonne of carbon dioxide removal from the environment.
The Emissions Reduction Fund takes over from Carbon Tax which was abolished in July last year following appeals that it was too restrictive in placing extra costs on Australian businesses and households.
The Fund is part of the Direct Action Plan that by 2020, the national carbon emission reading will be down by 5 per cent from the year 2000. The main challenge facing the country is the fact that without intervention of any kind, emission levels are only set to rise in the next five years according to the Department of the Environment report on the Fund.
How can this work for my business?
When an emissions reductions project has been approved, one Australian Carbon Credit Unit will be issued for every tonne of emissions reduction achieved by the project by the Clean Energy Regulator, the Government body which deals with carbon emissions.
The Emissions Reductions Fund aims to help businesses reduce energy costs and boost productivity while lowering the country's emissions. In a show of confidence in the scheme, the Government has committed $2.55 billion towards the Emissions Reduction Fund's success.
The Clean Energy Regulator is looking for 'genuine' emissions reduction methods for what it sees to be real and verifiable contributions to cutting down greenhouse gas output.
How else can my business get involved?
For a start, if you are looking to advertise your business, or if you're planning a conference, head over to our promotional pages to see what we can do with our range of eco-friendly, customisable bags.
There are plenty of other ways for your business to get involved in a project which could benefit the environment and save you money. These can include upgrading your current premises and transport vehicles, improving energy efficiency, improving soil for agriculture, reforestation and revegetation, capturing your landfill gas and reducing generator emissions.
When the credit has been calculated for the expected reduction amount, your business will be able to sell these credits back to the government when you've achieved your emissions reductions. The Department of Environment is working on prioritising different methods to be ready for use within the scheme.