First Emission Reduction Fund Auction - One Transport Company Sucessful
The Clean Energy Regulator has awarded 107 Carbon Abatement Contracts to the value of $660 million following the first Emissions Reduction Fund auction. The auction was held on Wednesday 15 and Thursday 16 April 2015, with an average price of per tonne abatement of $13.95.
The successful contractors have committed to deliver over 47 million tonnes of abatement.
'The auction results show the Emissions Reduction Fund has made a good start," said Chloe Munro, Chair of the Clean Energy Regulator.
It appears that only one company was sucessful using the new 'Land and Sea Transport Methodology' - Automotive Holdings Group Ltd, which has pledged to abate 157,503 tonnes of Co2 over 7 years (or approximately 22,500 tonnes per year). Although the induvidual contract price is confidential, if AHG contracted at the average price it would stand to make approximately $2.2m for sale of ACCUs over the period of the contract.
Looking at the auction by sector, it is clear that the established methods have scooped up the vast bulk of the contracts availiable - Sequestration will contract for 28 million tonnes and the Landfill and waste sector for 18 million tonnes; compared to the transport sector's 0.15 million tonnes.
Lets hopes to see more transport companies participate in, and be sucessful in future emissions reduction auctions.