What is the Emissions Reduction Fund?
The Emissions Reduction Fund (ERF) is a central component of the Federal Government’s Direct Action Plan. It is a voluntary scheme that aims to provide incentives for organisations to adopt new practices and technologies to reduce their emissions. The scheme applies to all of Australia, but we only recommend to sites outside of NSW and Victoria due to the Energy Savings Scheme (ESS) and Victorian Energy Upgrades (VEU) adopting higher subsidies.
How does it work?
Australian Carbon Credit Units (ACCUs) are earned annually in areas for each tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project.
What does this mean for you?
The ACCU price is agreed upfront with the Clean Energy Regulator and is paid back annually from the completion of the project for a period of term that is agreed upfront.
Here’s how it works:
- We assess the lighting at your business.
- The ERF subsidy is communicated on your Shine On proposal.
- We upgrade your lights to LED and you begin saving through the energy reduction.
- A year later NCBA will pay you for the eligible ACCUs created.
- Every year following until agreed date, NCBA will pay for the eligible ACCUs created.
