The federal government is seeking public feedback on options for the planned Emissions Reduction Fund safeguard mechanism.
The safeguard mechanism will ensure that abatement achieved under the Emissions Reduction Fund (ERF) is not offset by rises in emissions elsewhere in the economy.
Implementation of the crediting and purchasing components of the ERF are already underway, with the first auction to open on April 15, 2015.
The safeguard mechanism consultation paper released yesterday incorporates views from across the community, including feedback received from businesses and community groups during the extensive consultation on the ERF Terms of Reference and Green Paper.
Businesses and the community are invited to make a submission on the safeguard mechanism public consultation paper by April 27, 2015.
The government will consider this feedback in making final policy decisions on safeguard design, and will then release draft legislative rules for further comment.
The rules will be finalised in late 2015 and the safeguard mechanism will commence on July 1, 2016.
Environment Minister Greg Hunt said the ERF is the centrepiece of the government's efforts to tackle climate change and is known as the Direct Action policy.
Hunt said the ERF will help drive private sector investment to achieve emissions reductions.
"The important thing is that emissions reductions are real, measurable and additional to business as usual," he said.
"Figures released this week by the Department of Environment show we will easily meet our commitment to reduce Australia's emissions by five per cent from 2000 levels by 2020.
"Under Labor, Australia's abatement challenge to achieve the five per cent target was forecast to be 1,335 Mt CO2-e in 2008. This has now fallen to 236 Mt CO2-e."
Both the Greens and Labor have slammed the Direct Action policy and warned it will not achieve the necessary level of abatement.
Labor’s environment spokesman Mark Butler said Australia has been left with no meaningful way to reduce carbon pollution. Further information on the Emissions Reduction Fund is available at: www.environment.gov.au/emissions-reduction-fund