Australia will hold the third auction under its Emissions Reduction Fund on Apr. 27-28, Environment Minister Greg Hunt announced Saturday.

In the first two auctions, the government has contracted the purchase of 92.8 million tonnes of CO2e reductions at an average cost of A$13.12 ($9.63) per tonne, to be delivered over the next decade.

The second auction, held last month, saw Australia buy some 45.5 million tonnes at an average price of A$12.25.

“So far, over two-thirds of contracted emissions reductions have come from landscape management – avoided deforestation, reforestation, soil carbon and bushfire reduction,” Hunt said.

“I am confident that the third auction will build on the success of the first two auctions in helping to significantly reduce Australia’s emissions without a carbon tax and increased electricity prices.”

The Clean Energy Regulator has already spent half the A$2.55 billion budget, and observers expect the ERF’s funds to be depleted after two more auctions, although Hunt has said that a further A$200 million would be set aside annually from 2018.

By Stian Reklev – stian@carbon-pulse.com

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