Emissions Reduction Fund: proposed amendments to regulations applying to forestry projects

Closed 28 Feb 2020

Opened 17 Feb 2020

Results Updated 2 Jul 2020

The Carbon Credits (Carbon Farming Initiative) Amendment (Excluded Offsets Projects) Regulations 2020 started on 3 April 2020.

The amendments enable plantation forestry and farm forestry projects in higher rainfall areas to proceed with registration under the Emissions Reduction Fund if located in an area where tree planting is unlikely to materially impact water availability.

Published Responses

View submitted responses where consent has been given to publish the response.


The climate change function transferred to the Department of Industry, Science, Energy and Resources as a result of the Administrative Arrangements Order made on 5 December 2019 with effect from 1 February 2020.

As the Emissions Reduction Fund (ERF) matures, the Government is looking for opportunities to reduce the regulatory burden for participants.

To participate in the ERF, plantation forestry and farm forestry projects in high rainfall areas must meet requirements designed to manage the risk that water interception, by these types of plantings, could reduce water availability for other water users.

Government proposals

  1. Amend the water interception requirements to allow projects that are located in a region where material risks to water availability are being addressed through other mechanisms to proceed with registration. This amendment would support regional investment and employment, including in communities that have been affected by recent bushfires.
  2. Remove the exclusion on ERF projects that cease or avoid harvesting of plantation forests. This would allow these types of projects to proceed, subject to the development of a new ERF method for this activity in the future.

Consultation paper

We have developed a consultation paper outlining the proposed regulatory amendments.

Next steps

Once the consultation period has closed, the department will consider submissions and advise the Minister for Energy and Emissions Reduction on the proposed amendments. Submissions will be published on this website unless marked as confidential.

What Happens Next

The consultation period is now closed. The department will consider submissions and advise the Minister for Emissions Reduction on the proposed amendments.


  • Emissions Reduction Fund
  • Forestry industry stakeholders
  • Water entitlement holders
  • State or territory governments


  • Climate Change
  • Forestry sector
  • Emissions Reduction Fund