This audit would assess the effectiveness of the Clean Energy Regulator’s contracting, compliance and assurance activities for the Emissions Reduction Fund.

The Emissions Reduction Fund is a voluntary scheme that provides incentives for organisations to adopt new practices to reduce or store greenhouse gas emissions. Eligible activities under the scheme generate carbon credits that can then be sold either to the government through the fund’s auction and contracting processes or on a secondary market. The Emissions Reduction Fund includes a safeguard mechanism designed to send a signal to businesses to avoid increases in emissions beyond business-as-usual levels.

At the end of the fund’s 12th auction in April 2021, $2.5 billion was committed to abatement contracts, with $830.8 million paid.