The Clean Energy Regulator administers the ERF and provides regularly updated information about the administrative details of the fund. 

The ERF effectively covers the same kinds of activities that were under the CFI, but the eligibility requirements are slightly different. The ERF requires that, to be eligible, a project must (unless the method determination covering the project specifies otherwise):

• not have begun to be implemented before it has been registered (a ‘newness' requirement)

• not be required to be carried out under a Commonwealth, state or territory regulation (a ‘regulatory additionality' requirement)

• not be likely to be carried out under another Commonwealth, state or territory government program in the absence of registration under the ERF (a ‘government program' requirement).

Further details on the ERF are provided in section 6.3. It is strongly recommended that readers also refer to the Clean Energy Regulator website for updates.

2.5.1 The CSF/ERF builds on the CFI

As detailed in the introduction, the ERF was rebranded as the Climate Solutions Fund (CSF) in February 2019, although ERF is still regularly referenced, and in this guide ERF and CSF are used interchangeably.

The ERF builds on the CFI by offering emissions reduction opportunities to a range of participants beyond the land sector. Through the ERF auction arrangements, the government will purchase ACCUs from existing CFI projects that are competitive at an auction. This will allow participants in the ERF to secure a return from eligible projects. The extension of the ERF to activities outside of agriculture has implications for prices, as discussed in section 3.11 below.

2.5.2 Getting a contract

ERF project owners can submit their projects to a competitive auction run by the Clean Energy Regulator.

If the project is successful at auction, the government will enter into a contract with the project owner to deliver the agreed quantity of ACCUs for payment at the price bid into the auction.

To participate in an auction, project owners will need to submit information to the Clean Energy Regulator that sets out an estimate of emissions reductions to be delivered by the project and demonstrates the project's commercial readiness and their capacity to carry it out. Most project proponents will have estimated this information as part of their decision to join the ERF. Some will be able to base an estimate on the number of ACCUs that the project has already received.

Project owners will also have to submit a bid price to the auction. The bid price is the amount that the project owner would be willing to accept per ACCU for the duration of the contract. Auctions will be decided on price only.