The Clean Energy Regulator has announced the seventh Emissions Reduction Fund auction will be held in June.
The auction, to be held from June 6-7, is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce emissions.
Clean Energy Regulator chair David Parker said the regulator recognised the importance of regular purchasing events in providing participants with the opportunity to underpin a carbon abatement project.
“At this auction, a number of new and anticipated methods will provide additional opportunities for participation, including the recent release of the agricultural systems soil carbon method that has already had strong interest from the land-based sector,” he said.
More than $265 million remains available to purchase abatement at this and future auctions.
“We are in no rush to commit all of the remaining funds at this auction,” Mr Parker said.
“As always, our focus is on purchasing the best value abatement available in the market. We expect to hold another purchasing process later in the year.
“We expect to spend somewhere around $50 million to $100 million at the next auction. “This will serve to consolidate the existing portfolio, and build a portfolio of deliveries out to 2030.”
The auction process provides one avenue for projects to secure a purchaser for Australian carbon credit units, but there are other commercial opportunities available. Scheme participants have the option to offer only part of the expected abatement from a contract into the auction process.
They may trade further units they generate through contracts with other parties.
The Clean Energy Regulator has made minor changes to the guidelines for this auction. In previous auctions, the guidelines allowed the agency to purchase between 50 and 100 per cent of available abatement below the benchmark price.
From this auction, the agency will be able to purchase between 25 and 100 per cent below the benchmark price.
“This will provide additional flexibility and ensure we are meeting the purchasing principles in the legislation that underpin the auction process,” Mr Parker said.
Registrations for the auction close April 20.