Industrial and commercial emissions reduction: proposed new method under the Emissions Reduction Fund

Closes 17 Aug 2021

Opened 20 Jul 2021


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

  • Carbon Credits (Carbon Farming Initiative–Industrial and Commercial Emissions Reduction) Methodology Determination 2021 (ICER).

The proposed ICER method would replace the Industrial Electricity and Fuel Efficiency (IEFE) method. It would credit reductions in energy and industrial process emissions at industrial and commercial facilities. It was developed in response to stakeholder feedback on the method.

Key changes in the proposed ICER method from the IEFE method include:

  • Introducing a project-specific additionality measure to ensure the method provides additional abatement that would not be likely to occur without the Emissions Reduction Fund
  • clarifying the scope of eligible project activities and including new activities
  • requiring the electricity emissions intensity factor used in abatement calculations to be the value current at the time of reporting
  • making the abatement calculations more flexible and usable for project proponents
  • removing sub-method 2 to reduce the size and complexity of the method
  • simplifying the terminology used in the method.

Existing IEFE projects would be able to move to this method if they meet the eligibility requirements or stay on the existing IEFE method. It is proposed the IEFE method will be revoked once the ICER method is made, as is usual practice, and the Clean Energy Regulator will work with project proponents on transitional arrangements where required.

Why we are consulting

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 might arise from carrying out a project under the proposed ICER method.

Our department is also seeking feedback on the amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to support the proposed ICER method. This would allow ICER projects 3 years to start their crediting period once they are registered.

Consultation documents

Next steps

The Clean Energy Regulator is responsible for Emissions Reduction Fund method development and will review feedback you provide on the proposed method determination.

Have your say


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


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