The Emissions Reduction Fund contains three key mechanisms to deal with with the various aspects of the scheme.

1. The crediting mechanism involves the registration of abatement projects and the crediting of abatement activities with the ERF’s unit of trade, the Australian Carbon Credit Unit (‘ACCU‘);
2. The contracting and purchasing mechanism through which ACCUs are purchased from project proponents under contract; and
3. The safeguard mechanism which is designed to control increases in emissions elsewhere in the economy.