While the key focus of the ERF is to reduce carbon emissions, there are a wide range of activities that can achieve this. Therefore projects which drive business productivity, efficiency and reducing energy usage are likely to fit within the ERF funding mandate.
The program details are yet to be finalised, but the current intention is that the ERF will use a reverse auction process (lowest cost per tonne of CO2e abated) and will apply to a wide range of productivity-enhancing activities such as:
- upgrading commercial buildings
- improving energy efficiency of industrial facilities and houses
- capturing landfill gas
- upgrading vehicles and improving transport logistics, and many others.
With $2.55bn committed to the fund, companies should consider the ERF as a potential opportunity for co-funding projects. The first auction round is expected start in the second half of 2014, so now is a perfect time to consider upcoming projects.