World Business News

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Australia introduces Emissions Reduction Fund law

Zone(s): Australia ¦ Sector(s): Carbon Taxation
[24 June 2014, Tax-News.com] By Mary Swire, Tax-News.com, Hong Kong: he Australian Government has introduced legislation to implement its flagship Emissions Reduction Fund (ERF), an incentives-based system that would replace the carbon tax.

If the legislation passes, the ERF will provide incentives for businesses and organizations to come forward with emissions reduction opportunities they have identified. Auctions will be held and the Government will enter into contracts to buy emissions reductions from successful bidders – from those that plan to achieve the greatest reductions in emissions at the lowest cost. The Clean Energy Regulator will administer the ERF and will be able to enter into contracts worth up to AUD2.55bn (USD2.4bn). Further funding will be considered in future budgets.

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