Emissions Reduction Fund (ERF) Information Centre

The centrepiece of the Government's Direct Action climate policy is the Emissions Reduction Fund (ERF). Key features of the ERF include:

  • Incentives are payable for emissions reduction activities which come from the Government's consolidated revenues
  • The Fund uses the existing National Greenhouse and Energy Reporting (NGER) scheme to measure overall company carbon emissions
  • Under the ERF, businesses that reduce their emissions below their baseline will be able to sell their CO2 emissions reduction to the Government
  • A reverse auction operates to purchase abatement at the lowest cost per tonne.



  • An overview of the Coalition’s Direct Action plan
    Issued: April 2014

    The ‘Direct Action plan’ was prepared for the 2010 Federal election to outline the broad principles that a Coalition Government would follow in the development of programs to reduce Australia’s CO2 emissions by 5% by 2020. At the centre of the Plan is the Emissions Reduction Fund that allows industry to sell carbon abatement back to the Government.

    Click here to download a pdf version of the guide.