To help Australia reach its target of 5% emissions reductions below 2000 by 2020.
"The first auction under the Fund was held in April 2015, and
successfully purchased over 47 million tonnes of abatement at an average price of
AU$13.95." (Source: Australia's INDC)
"The Government has provided $2.55 billion to establish the Emissions Reduction Fund, with further funding to be considered in future budgets."
"The Clean Energy Regulator will issue one Australian Carbon Credit Unit for each tonne of emissions reductions delivered under a method. Credits can then be sold to the Government through a reverse auction." "The Clean Energy Regulator will run competitive reverse auctions to purchase emissions reductions at the lowest available cost. The Regulator will enter into contracts with successful bidders. The contracts will guarantee payment in return for delivery of emissions reductions." "The safeguard mechanism will ensure that emissions reductions paid for through the Emissions Reduction Fund are not offset by significant increases in emissions elsewhere in the economy." (Source: http://www.environment.gov.au/climate-change/emissions-reduction-fund/about)