The Emissions Reduction Fund (ERF) provides a government funded incentive for organisations in a range of sectors to reduce or ‘store’ carbon emissions.

Through the implementation of energy efficiency and emissions reduction projects, Australian Carbon Credit Units (ACCUs) can be created and subsequently sold to the government through the ERF reverse auctions.

Being the leading creator of Victorian Energy Efficiency Certificates (VEECs) in 2016, Wattly has developed a reputation as an efficient and reliable certificate aggregator and can handle the creation and sale of your ACCUs from start to finish.

The value of ACCUs need not be tied to the continuation of reverse auctions. ACCUs can be created under one of the 33 ERF methods regardless of a sale contract with the government. ACCUs can then be sold in the secondary market to help ‘make up’ ERF contracts that not fulfilled, to high emissions facilities that have exceeded their emissions baselines as defined under the safeguard mechanism, or to a range of commercial entities looking to offset their emissions through carbon credit purchases.

We extended our VEEC and ESC creation experience by registering an ERF project in 2014, and creating our first ACCUs in 2017 under the ERF “Industrial Electricity and Fuel Efficiency Method”. Through this method, the annual creation and sale of ACCUs helps to offset the upfront cost of the upgrade and increases the ongoing savings achieved through reduced energy consumption.

 

Category Name/Certificate Installations Residential Business Wattly Accredited
Emissions
Reduction Fund
(aka Direct
Action)
ERF / ACCU Commercial Lighting, Street
Lighting, Compressors, Motors,
Pumps, Fans, Conveyors,
Refrigeration, Chillers, HVAC, Gas,
Boilers, Burners, Waste and
wastewater
Biomass, Biogas, Land Use
Methane Destruction, Soil,
Livestock emissions
NO YES YES
  • Direct Action with Secondary Market

    • One certificate ACCU = 1 tonne of CO 2 e avoided (not emitted)
    • The Government has entered into contracts through a reverse auction process to purchase set quantities of ACCUs at set prices over the coming years.
    • There have been 5 auctions over 2015-2017, with contracts for 380 projects registered to deliver 188 million ACCUs over the next 10 years.
    • Since the government is paying directly for the abatement is it known as Direct Action
    • Market tradable certificates (secondary market) are called Australian Carbon Credit Units (ACCUs) in parcels of 5,000 through brokers

  • Demand

    • Scheme is supported by the Federal Government with $2.55B budgeted for abatement purchase.
    • ACCUs can also be bought and sold on a secondary wholesale market through brokers
    • ACCUs are created after the abatement has been achieved (typically each year) and sold to the government at the agreed prices or on the secondary market.

  • Supply

    • Certificates can only be created through approved activities / methods.
    • There are 33 approved methods.
    • Businesses successfully in the ERF project registration and subsequent auctions are able to create and supply certificates to the government under the agreed
    contracts.

  • Regulations

    • The Federal Clean Energy Regulator (CER) administers the scheme
    • The Federal Department of Environment is responsible for policy advice and creating the methods.

Wattly’s helps business unlock the maximum return under the ERF using our industry experience and knowledge of the ERF project registration, reporting, auditing and contract management processes.

Partnering with Wattly

Wattly partners with businesses involved in carbon abatement
projects (from energy efficiency or reduces emissions) to enable them to financial based incentives under the federal schemes.

Wattly partners with both energy efficiency installation companies, electricians, equipment
suppliers and end businesses performing upgrade.

Get in touch

For further information, or to discuss how Wattly can help you, please call us.

Alternatively, complete the form and we will be in touch with you.