Coordinación entre Alineamiento y perfil Longitudinal

Payment will be provided after emissions savings are delivered in accordance with an approved emissions reduction method.

2�1� Auctions

Feature

Policy

Rationale

Auction participation The Clean Energy Regulator will have the power to administer a range of pre-qualification checks prior to an emissions reduction provider being registered to participate in an auction.

This will ensure that only credible bids can be put forward and that the auction selects projects that can be delivered and represent value for money.

The participant must have an emissions reduction estimate that: • relates to a registered

ERF project, and

• is calculated in accordance with the approved method and credible. The Clean Energy Regulator may exclude participants on the following grounds:

• the commercial readiness of the technology or practice

• the capacity of the project proponent to carry out the project, and

• compliance with ERF contracts and legislation administered by the Clean Energy Regulator.

Scheduling of auctions Auctions will be held regularly to provide opportunities for business to access the Emissions Reduction Fund.

This will ensure that businesses have regular and predictable opportunities to participate in ERF auctions.

Four auctions will be scheduled for the first year. The Regulator will publish an indicative forward schedule of auctions over the subsequent 12 months.

Once there are enough registered bidders to hold an auction, the Regulator will confirm the auction date with four weeks notice.

Feature

Policy

Rationale

Bidding rules Auctions would be conducted in This will enable participants to accordance with guidelines published package emissions reduction by the Clean Energy Regulator. activities in a way that best These guidelines would set out suits their needs.

the rules for bidding at auction, _{This will make auctions more} including that: _{transparent and make it easier to} • bids must relate to a whole _{assess whether projects will deliver}

project not part of a project _{value for money.} • bidders will only be allowed

to submit one bid for each project per auction

A minimum bid size will improve the administrative efficiency of the ERF. The exemption for CFI • once a project has been successful _{projects from size restrictions will}

at an auction, it cannot be re-bid _{facilitate the transition from the} into a later auction _{CFI to the ERF.}

• if a project is not successful it can be re-bid into a subsequent auction, and • there will be a minimum

project size—initially 2000 tonnes CO2-e a year on

average over the contract period. As a transitional measure, the minimum project size will not apply to projects approved under the CFI before it is incorporated within the ERF.

Feature

Policy

Rationale

Publication of auction results and information

The Clean Energy Regulator will publish information following each auction and at the end of each year of operation.

This will facilitate project development and provide information to the public on the progress of the ERF. Information published after

each auction will include the weighted average price awarded to successful projects, and contract related information for successful bidders including:

• the name of the emissions reduction provider • the name of the project • the auction date • the total abatement to

be delivered, and

• the duration of the contract. On a yearly basis the CER will publish aggregated information for the year including the total amount of emissions reductions in successful bids, the total amount of funding allocated to successful bids, the total number of ACCUs purchased, and total funding spent on purchasing ACCUs.

Contract details that are commercially sensitive will be kept confidential.

Feature

Policy

Rationale

Contracts for Contracts will have standard This approach allocates risks where

the purchase of terms including: they are best able to be managed

emissions reductions _{• conditions which, if not met,}

will allow obligations to lapse • a schedule setting out the

and enables the Government to manage the risks of under-delivery to the objectives of the ERF. delivery and payment for The Government’s preference is emissions reductions that contracts will be for five years. • scope to vary obligations where

contract delivery is affected by matters outside the control of the emissions reduction provider, and

As part of its ongoing consultation with business on the design of the Emissions Reduction Fund, the Government will commission • flexible delivery options allowing a commercial consultancy to

the supply of equivalent undertake a market testing process Australian Carbon Credit prior to the first auction.

Units from another emissions

reduction project. This process will investigate the _{types of projects business are} Damages may be payable if the proposing to bid into the Fund, provider is unable to deliver the and the contract details that contracted emissions reductions. best meet the needs of business. Contracts will not be able

to be traded but will be able to be transferred to another emissions reduction provider with the agreement of the Clean Energy Regulator.

It will allow Government to focus attention on methodologies to enable projects to come forward at the first auction and assess if alternate contract lengths are required.