1. The Emissions Reduction Fund and the primary industries

2. The Emissions Reduction Fund (ERF)
The central element of the Direct Action Plan is the Emissions Reduction Fund (ERF).
The CFI will be transitioned into the ERF during its development.
The Government will use the ERF to purchase lowest-cost emissions reductions from across the economy to meet its 2020 Kyoto emissions reduction target.

3. Key elements The Clean Energy Regulator will administer the ERF
Businesses, individuals, community organisations, etc, will be contracted to deliver emissions reductions
The main mechanism for setting the price will be a reverse auction process.

4. The market for credits (ACCUs)
Currently under the CFI
The price for Australian Carbon Credit Units (ACCUs) is set by the market
Under the ERF
The Australian Government will be the main purchaser of ACCUs, through the ERF.

5. Permanency Permanency will be for either 100 years or 25 years.
Credits issued for 25 year projects will be discounted by 20%, as well as by the 5% risk of reversal buffer.

6. Agriculture opportunities
Existing CFI projects may have a relative advantage early in the life of the ERF- ready to participate in auctions.
Methodologies just endorsed or approved include:
Measurement based soil carbon
(Grazing Management)
Nitrate supplementation for cattle
Methodologies under development (some nearing finalisation) at the moment include:-
Early finishing of beef cattle
Application of biochar to soil
Modelled approach to measurement of soil carbon
Fertiliser use efficiency in the cotton industry