On October 1, Federal Energy and Emissions Reduction Minister Angus Taylor announced five new priority methods, to be developed by the Clean Energy Regulator during the next 12 months, to expand the range of activities eligible under the Emissions Reduction Fund.
Following a period of public consultation, the five new ERF methods in 2022 will be:
- Transport, including emissions reductions created by electric vehicle charging and hydrogen refuelling infrastructure.
- Hydrogen, including injection of clean hydrogen into the gas network, and the use of hydrogen in electricity generation or other uses, such as low carbon steel.
- Integrated farm method, including allowing separate ERF land-based activities to be combined or ‘stacked’ on the same land.
- Carbon capture use and storage, including in the production of industrial and building materials like insulation or concrete.
- Savanna fire management, building on the existing method with updated carbon accounting and by expanding the carbon pools and vegetation types covered.
NFF chief executive officer Tony Mahar said the new priorities were strongly aligned with the NFF’s submission on the process.
“In particular, the NFF supports the development of an ‘integrated farm method’ that would allow separate ERF land-based activities to be combined or ‘stacked’,” Mr Mahar said.
“This method will take a ‘whole of farm’ approach that recognises the dynamic nature of a farm business and will go a long way to incentivising farmers to participate in the ERF.”
Currently, a single property could undertake activities that cut across several ERF methodologies, and would have to meet auditing requirements for each method in order to participate, creating a significant barrier to entry for many farmers, especially smaller landholders.
“The NFF has long called for greater efforts to reduce the burden of participating in the ERF, especially the administrative burden and the significant costs involved in those.
“Digital and other technologies are expected to assist to make engagement and compliance with ERF rules more efficient.
“We support the government’s approach of voluntary incentives as opposed to penalties, in supporting farmers to reduce emissions.”