The second Emissions Reduction Fund (ERF) auction, conducted by the independent Clean Energy Regulator, has awarded contracts for 45.5 million tonnes of emissions reduction at an average price of $12.25 per tonne.
The second auction has delivered an even lower average cost per tonne of abatement than the first auction, where 47 million tonnes of emissions reduction were secured at $13.95 a tonne.
Contracts were awarded to 77 organisations covering 131 projects, including 33 bushfire prevention projects which will reduce emissions by nearly 7 million tonnes. Indigenous groups will play a significant part in this.
The Government has now secured 92.8 million tonnes of emissions reduction through the ERF at an average price of $13.12. This is 1 per cent of the cost per tonne of abatement under the carbon tax.
Environment Minister, Greg Hunt, said this work builds on the success to date in helping to meet and beat Australia’s 2020 target and in working towards the nation's 26-28 per cent 2030 target.
"I look forward to highlighting the success of the fund when I return to the Paris climate change talks later this month and outline Australia’s strong suite of policies to reduce emissions," he said.
"These results are further proof that we have one of the most effective systems in the world for significantly reducing emissions."
Hunt said the World Bank recently launched a $100 million reverse auction that replicates many features of the Emissions Reduction Fund.
The Minister went on to talk about Australia's role in achieving progress towards the global phase-down of hydrofluorocarbons (HFCs).
"I am delighted that there has been a strong commitment to work towards an HFC phase-down agreement under the Montreal Protocol in 2016," he said
He referred to an international meeting in Dubai earlier this month in which attendees agreed that HFCs should be controlled and phased down.
"Australia was unanimously chosen, along with China, by 197 countries as one of two co-chairs for the contact group which helped draft and lead the adoption of the Dubai Roadmap for the phase down of HFCs," Hunt said.
"This is both a fundamental step in helping to protect the ozone and to dramatically reduce future greenhouse gases. It is a critical contribution to the success of the Paris talks."
Montreal Protocol negotiations begin on November 30, 2015 at the Paris Climate Conference (COP21).
The United Nations conference on climate change will be attended by countries from around the world.
The United Nations Environment Program (UNEP) estimates that emissions of more than 135 billion tonnes of carbon dioxide equivalent have been averted from the atmosphere.
The original focus of the Protocol was to phase-out ozone-depleting gases, such as chlorofluorocarbons (CFCs). That focus has now turned to expanding the Montreal Protocol for the phase-down of HFCs.
Parties to the Montreal Protocol, including Australia, agreed to establish a formal group to begin discussions on the global phase-down.
Australia took a lead role in the reduction of the previous generation of harmful ozone depleting gases and is now working towards phasing-down the domestic use of HFCs by 85 per cent by 2036.