Carbon Markets Emissions Reduction Fund

UPDATE: Behind the numbers – a closer look at ERF auction II

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

The Clean Energy Regulator yesterday published its results for the second Emissions Reduction Fund (ERF) auction, with the Regulator contracting 45,451,010 million tonnes (Mt) of abatement at an average price of $12.25.

Thirty-four per cent of all registered proponents were successful at the second auction. Of the total 399 projects currently registered to participate in the ERF, 131 projects were successful in securing contracts (32 per cent) leaving 268 projects registered which did not participate, missed the cut-off date or failed to bid within the Regulator’s contracting range.

Below we discuss the key implications for the market.

The Results of the Second ERF Auction

  • The amount of abatement contracted was consistent with the previous auction, yet slightly smaller than market expectations. As we outlined in our September ERF Outlook, given the much higher level of registered projects, auction two had potential to be much larger than the first auction, despite expectations that the average abatement price would be lower as a result of increased competition.
  • While only one in three projects were successful, results indicate that larger projects and more sophisticated bidders dominated, with ‘winning bidders’ 
Restricted Access

This is a subscriber report. Please login to access this content.

Become a Carbon Insider today

Unlock our latest analysis, briefings and price information with our new Carbon Insider service.

Click below to see our plans.

Sign up for regular insights

LATEST UPDATES

  • Carbon Markets

    How do international policy developments impact the Australian carbon market?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    While Australia’s climate policy malaise continues, international climate activity continues to build, with the EU […]

    Research Insights | July 23rd, 2021
  • Carbon Markets

    ALERT: Australian CO2 spot price hits $21.50, forward activity picks up

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The spot price for Australian carbon credit units (ACCUs) continues to break new ground, reaching […]

    Research Insights | July 21st, 2021
  • Carbon Markets

    13th ERF Auction date announced, but expectations remain muted

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Clean Energy Regulator has announced that the 13th Emissions Reduction Fund (ERF) Auction will […]

    Research Insights | July 19th, 2021
  • Carbon Markets

    PRICE REPORT: Australian Carbon Offset Market Report: July 5 – 16, 2021

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, Our latest Australian Carbon Offset Market Report has now been published. The Australian […]

    Research Insights | July 19th, 2021
  • Carbon Markets

    RECORDING: Could the Australian carbon offset price eventually “do a Europe”?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    One of the key drivers of record EUA prices is the increasing role of investors, […]

    Research Insights, Webinars | July 13th, 2021
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone