Carbon capture and storage method: proposed new method under the Emissions Reduction Fund

Closes 27 Jul 2021

Opened 29 Jun 2021


The Australian Government’s first Low Emissions Technology Statement – 2020 identified carbon capture and storage (CCS) as one of Australia’s priority low emissions technologies.

In late 2020, the Minister for Energy and Emissions Reduction tasked the Clean Energy Regulator with developing a CCS method under the Emissions Reduction Fund.

A CCS project captures greenhouse gas emissions that would otherwise have been released to the atmosphere. It transports them for injection into an underground geological formation for permanent storage. 

The technology can underpin new low emissions industries such as hydrogen. It can also reduce emissions in hard to abate sectors such as cement production and steel manufacture.

Why we are consulting

The Emissions Reduction Assurance Committee is seeking feedback on a proposed new methodology determination under the Emissions Reduction Fund:

  • Carbon Credits (Carbon Farming Initiative—Carbon Capture and Storage) Methodology Determination 2021

The proposed method would enable projects that capture and permanently store greenhouse gases in underground geological formations to generate Australian carbon credit units. 

The Minister for Energy and Emissions Reduction is required to consider a range of factors when deciding whether to make a new method. This includes whether an activity under a method could have any adverse social, environmental, or economic impacts. As such, feedback may cover adverse impacts that are likely to arise from carrying out a CCS project under the proposed new method. Information on the operation of the proposed CCS method is in the draft CCS Simple Method.

Our department is also seeking feedback on the amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to support the method.

Consultation documents

Have your say


  • Emissions Reduction Fund
  • Climate Change
  • CER
  • Clean Energy Regulator


  • Climate Change
  • Emissions Reduction Fund
  • Emissions Reduction Fund methods