The Hon. Greg Hunt MP
Minister for the Environment
$2.55 billion confirmed for Emissions Reduction Fund
13 May 2014
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The Australian Government is committed to reducing Australia's emissions without the world's biggest carbon tax.
The Australian Government has today delivered on its pledge to provide $2.55 billion to establish the Emissions Reduction Fund from 1 July 2014.
This reaffirms the Government's strong commitment to reducing Australia's emissions by five per cent below 2000 by 2020.
The emissions reduction target will be achieved without a damaging carbon tax on families and business that increases the cost of electricity and gas.
We can reduce emissions without imposing a tax that increases energy costs for businesses and households.
The failed carbon tax attempts to cut emissions by cutting economic growth.
By contrast, through the Emissions Reduction Fund, the Government will support Australian businesses and households to lower their energy costs at the same time as reducing Australia's emissions.
Funds will be allocated flexibly over time according to the profile of projects contracted under the Emissions Reduction Fund. The Government will be able to write contracts up to the value of $2.55 billion over the forward estimates period. Payment will be made as abatement is achieved.
The Government has already introduced legislation to repeal the carbon tax, released a White Paper setting out the detailed design of the Emissions Reductions Fund and draft legislation to establish the arrangements for the Fund have now been released.
The Fund will also expand the Carbon Farming Initiative to enable emissions reductions across the entire economy to be credited beyond the land sector.
Work has already begun to identify and prioritise opportunities to reduce emissions and on methods businesses can use to identify reduction opportunities in their operations.
Further details about the Emissions Reduction Fund, including the White Paper and draft legislation, is available at www.environment.gov.au/emissions-reduction-fund.