An Emission Reduction Contribution (ERC) is a declining multiplier applied to a facility’s baseline to ensure cumulative reductions in allowable emissions over time. It standardises how the 4.9% annual decline rate is implemented in baseline calculations.
Key points
- ERCs are published in advance for each year to FY2029–30
- They apply to all facilities unless exempt under TEBA or MYMP provisions
- ERCs simplify emissions planning and baseline management
For example:
- FY2023–24 → ERC = 1.000 (100%)
- FY2024–25 → ERC = 0.951 (95.1%)
- FY2029–30 → ERC = 0.657 (65.7%)
ERCs provide a transparent, year-by-year framework to guide compliance and support long-term emissions budgeting. This approach gives facilities predictability while aligning their emissions pathways with national reduction targets.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.