The Australian Government's proposed Emissions's Reduction Fund (ERF) intends to create incentives for eligible greenhouse gas (GHG) abatement projects. The ERF provides a framework where GHG emissions reductions are credited as Australian Carbon Credit Units (ACCUs) and are purchased by the government through a contract for abatement delivery with the Clean Energy Regulator. Emissions reductions will be purchased at lowest cost as determined by a competitive 'reverse auction' bidding process.    

Participation will be through a menu of approved ERF methodologies designed for broad application to encourage business participation. Each method will set out specific eligibility requirements for project participation, over and above the 'newness' requirement which states that a project must not commence implementation prior to being registered with the Regulator.