The ASBEC submission on the design of the Direct Action Emissions Reduction Fund includes two key elements:

Principles that should guide the Emissions Reduction Fund

Operational demand for energy in the buildings sector (commercial and residential, not including construction) amounts to 23% of Australia’s greenhouse gas emissions. There is significant potential to reduce the sector’s GHG through investment in energy efficiency. The following policies are key to unlocking this GHG reduction via long term structural change:

• Accelerated green depreciation for buildings,
• A national white certificate scheme,
• Public funding for energy efficient buildings retrofit,
• Modernisation of the Building Code of Australia with higher energy efficiency standards, and
• Enhancing performance standards in the minimum energy performance standards for
  appliances (MEPS)

ASBEC submits that there are some guiding principles which ought to be considered for the ERF. These include;

• A clear focus on maximising abatement to achieve Australia’s 2020 abatement target
• Preference to be given to abatement which has certainty of being achieved
• Independent verification of abatement
• Weighting to be given to abatement which continues beyond 2020
• Transparency (eg, disclosure of bid prices and report on ERF abatement outcomes)
• Certainty for participants and government
• Minimise transaction costs
• Fairness and equity

And that in addition to the ERF there is still a need for complementary measures to realise the full abatement potential within the buildings sector. Complementary measures, both financial and non-financial incentives, to encourage the built environment towards better practice and reduced emissions such as; discounts for lower emissions properties, training opportunities to upskill the workforce, R&D incentives to support innovation, community education to change occupant behaviour etc.

Detailed Report on Design Principles

Endorsed by ASBEC membership, this report Delivering Abatement Through Direct Actions – Emissions Reduction Fund, concept design and practice offers a detailed exploration of how the ERF might work across all industries. Commissioned by the Property Council of Australia, and carried out by ACIL Allen Consulting, it incorporates input from a range of ASBEC members and has been endorsed by the Council.