Emissions Reduction Fund (ERF)

Helping organisations adopt low carbon practices and technologies

Pangolin Associates Forestry Project NSW. Auditors in field.
Our auditors on site: Dr Samual Phua and Dr Sunil Sharma

The Australian Government supports new greenhouse gas reduction and energy efficiency projects through the Emission Reduction Fund (ERF).

As well as providing an income, an approved ERF project creates carbon credits (ACCUs).

Our forestry specialists provide ERF services, as well as services for separate government initiatives, such as NGER and Climate Active (formerly NCOS).

How the ERF scheme works

There is $2.55 billion in Government funding available for approved projects through the Emissions Reduction Fund scheme. ERF focuses on 3 elements:

  1. Crediting emissions reductions.
  2. Purchasing emissions reductions through a reverse auction.
  3. Safeguarding emissions reductions.

How Pangolin can assist with ERF projects

We assist with new project applications, as well as ERF requirements once approved.

  • We help prepare new project auction bid submissions. Usually this involves a comprehensive Energy Audit and / or Greenhouse Gas Assessment (carbon footprint).
  • Pangolin auditors prepare annual measurement and verification (M & V) analysis to calculate savings and emissions reductions. This is necessary to ensure you meet ERF obligations.
  • We provide mandatory audit services, often part of an ERF contractual agreement, or as specified by the Clean Energy Regulator, the entity overseeing administrative ERF tasks. NGER registered auditors must conduct mandatory audits.
  • We also assist with the ERF’s Safeguard Mechanism for organisations emitting more than 100,000 tonnes per annum.

Carbon Farming Initiative (CFI) services under the ERF

The ERF now incorporates abatement projects such as the Carbon Farming Initiative (CFI). Pangolin works with landowners and project owners across Australia supplying auditing and assurance services for CFI abatement certification.

Additional ERF projects

Along with existing Carbon Farming Initiatives, ERF approved projects include:

  • Commercial buildings,
  • Alternative waste treatment,
  • Landfill gas,
  • Transport (land, sea and aviation),
  • Coal mine waste gas,
  • Avoided clearing of native regrowth.

Emissions Reduction Fund process summary

  • Register your new project with the Clean Energy Regulator’
  • Provide an emissions abatement estimate for the coming 7 years’
  • Register for an ERF auction.

For successful bids:

  • Proceed with your ERF approved project and report as required,
  • Provide carbon abatement as per the agreed timeline.

Your organisation will receive reimbursement from the Clean Energy Regulator. Talk to us about your ERF project.

Find information on forms and resources (Clean Energy Regulator)

Forms and resource information is available on the Clean Energy Regulator’s website. Find information on applications, auctions and contracts, reporting and auditing, and more.

Related services

Emissions from high intensity manufacturing industry. Pangolin Associates provides NGER services for businesses required to report emissions annually.


Are you reporting on energy and emissions? Our Registered Greenhouse & Energy Auditors help you prepare your report, or provide verification and assurance.

Pangolin Associates carbon footprint services, including air travel and much more.

Carbon Footprint

Measure then act. Our GHG Assessments calculate your emissions in detail. We’ll provide a comprehensive report and help you reach your targets, or meet liabilities.

Pangolin Associates: Safeguard Mechanism services ensure successful ERF projects. (Image: Australian power plant and pollution.)

Safeguard Mechanism

Ensure that purchased emissions reductions, or successful ERF auction projects, are not offset by higher than business-as-usual levels. Stay within baseline levels.

Next ERF auction