Companies including AGL, Veolia and LMS that earn millions of ERF dollars by generating electricity from landfill gas have won a significant concession from the federal government.
The Clean Energy Regulator has set up a special unit to fast-track the development of new methods for earning carbon credits, says the agency's chair, David Parker.
Carbon abatement from projects with major environmental and social benefits will be purchased at more than twice the ERF auction price, under contracts being negotiated by the Queensland government.
Of the two types of carbon contract on offer at tomorrow's ERF auction, only one is likely to see a noticeable price increase, according to Market Advisory Group founder Raphael Wood.
The Clean Energy Regulator has "pencilled in" a date for the next ERF auction, and hasn't ruled out an industry suggestion that it consider signing new contracts beforehand.
The disruption caused by COVID could lead to force majeure declarations by some businesses that have contracted to supply carbon credits to the Clean Energy Regulator, according to carbon lawyer Elisa de Wit.