Last updated 27 February 2015

The Emissions Reduction Fund (ERF) is a government scheme to encourage carbon projects on land.

Projects may include reducing emissions from energy efficiency, savanna fires, and livestock, or increasing the amount of carbon that is stored in trees and soil.

The ERF Car explains some of the basic concepts

The ERF is basically a financial incentive to reduce carbon emissions across any sector – if you follow the rules for a project and reduce carbon emissions you can receive carbon credits which you can sell to the government in auctions or to businesses.

Land activities contribute around 20 per cent of total greenhouse gas emissions produced in Australia. Land managers can play an important role in reducing land sector emissions by undertaking ERF projects on your land.

The ERF is supported by legislation which provides certainty for project owners and ensures the integrity and value of the carbon credits issued under the scheme. The Carbon Farming Initiative started in December 2011 and expanded to become the ERF in December 2014.

For more information see the Clean Energy Regulator.