27 Apr First Auction yields 47 million tons of carbon abatement- but at what cost?
On April 23 2015, The Australian Clean Energy Regulator who is responsible for running the Emission Reduction Fund (ERF) auctions on behalf of the Federal Government, announced that they had contracted 43 organisations with 144 projects to deliver 47 million tons of carbon abatement for $660 million (average price of $13.95 per ton) from the auction on April 15 and 16 2015. On the basis of these figures, the Australian Federal Government has achieved roughly 25% of its abatement target in the first auction, although half of the abatement from this first auction won’t be delivered before 2020, and unless further abatement can be found, the Government’s target of 236 million tons to meet their 5% emissions reduction from 2000 levels by 2020 is not likely to be achieved.
The Climate Change Authority, who provides independent expert advice on Australian Government climate change mitigation initiatives, said that at $13.95, the Government would only be able to deliver 15% of its own target despite spending approximately 25% of its budget. The Government would also only be able to meet 7% of the Climate Change Authority target of a 19% reduction from 2000 levels by 2020 at $13.95 per ton.