The Hon. Greg Hunt MP
Minister for the Environment
Emissions Reduction Fund introduced to Parliament
18 June 2014
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The Government is a step closer to delivering on its promise to replace the failed carbon tax with a
positive plan that will actually reduce emissions.
Today we have introduced legislation to the Parliament to implement the Emissions Reduction Fund - the centrepiece of the Coalition's Direct Action Plan.
We're committed to taking action to tackle climate change but we'll do it without a $7.6 billion carbon tax hit on the economy.
The Carbon Farming Initiative Amendment Bill 2014 will help Australian businesses and communities enjoy the benefits of a cleaner environment and help Australia to meet its emissions reduction target of five per cent below 2000 levels by 2020.
The Bill expands on and streamlines the existing Carbon Farming Initiative to provide incentives for businesses and organisations to come forward with emissions reductions opportunities that they've identified across the Australian economy.
Competitive auctions will be held and the Government will enter into contracts to buy emissions reductions from successful bidders at lowest cost.
The Clean Energy Regulator will administer the Emissions Reduction Fund and will be able to enter into contracts worth up to $2.55 billion from the commencement of the Fund, with further funding to be considered in future budgets.
The Emissions Reduction Fund has been developed in close consultation with business and the community. The Government has considered more than 290 submissions on the Terms of Reference, more than 340 on the Green Paper, and we've consulted on exposure draft legislation.
To tackle climate change we need a policy that actually works. The carbon tax doesn't.
Unlike the carbon tax, the Emissions Reduction Fund will achieve significant cuts in Australia's emissions because the Government will only pay on delivery of real and measurable cuts.
The carbon tax was a $7.6 billion hit on the Australian economy in its first year of operation, yet there was no meaningful reduction in emissions. The carbon tax truly is a policy failure.
Further information is available online at environment.gov.au/emissions-reduction-fund