Carbon analyst Reputex says Australian projects could generate credits worth more than $1.6 billion over four years, but only if the ERF is in place by year's end and if the Government spends more money upfront.
The Emissions Reduction Fund would increase opportunities to create carbon credits, but Shadow Environment Minister Mark Butler says the scheme is too flawed to save the offsets sector.
As the Senate prepares to axe carbon pricing, Environment Minister Greg Hunt has approved rules to enable graziers to create credits by boosting soil carbon levels.
The viability of the carbon offset sector would be at risk if there is an extended period with no carbon price in place and no replacement program enacted, a Senate inquiry has heard.
The Federal Government today repealed the Energy Efficiency Opportunities regulations ahead of the repeal of the main Act, and gazetted changes to the Carbon Farming Initiative.
The Federal Government has proposed amendments to Carbon Farming Initiative regulations that will make it possible to earn credits from three new activities, and WA iron ore projects might become a beneficiary.
A decision by the Administrative Appeals Tribunal could force the Clean Energy Regulator to approve pre-existing projects that have so far been excluded from the Carbon Farming Initiative.