The Australian Carbon Trust (ACT) – with a budget of $75.8 million  over its first five years – was announced by the Rudd government last May. Towards the end of this month, or in early April, the ACT will finally be launched in Brisbane, where it will be based.

The government’s attention over the last nine months has been focused on getting its proposed emissions trading scheme through, which meant little has been said about the ACT’s progress. Chairman Robert Hill was selected to pull together a management team, work out the general structure of the ACT and launch it into action.

The top three management positions are now filled, as is half the board. The ACT will maintain a close relationship with the UK Carbon Trust through an official partnership allowing the ACT access to the UK Trust’s library of case studies.

So what is the ACT all about?

The entity will use government money to help industry and individuals reduce their carbon footprint. Its flagship program is the $50 million Energy Efficiency Fund, which will target commercial buildings. The idea is to use government funding to prove the concept behind a couple of projects and then get private investment involved to back up future initiatives.  It is understood the ACT is working with the Green Building Council and like organizations on energy efficiency and like ratings, focusing on carbon alone rather than water, waste and other elements that current ratings reflect. An inaugural project is expected by mid-year.

The second area of work for the ACT is the residential pledge fund. This will provide a calculator function to households so that they can figure out their energy use and the dollar savings that result from energy efficiency activities.  Individuals will then be able to pledge the resulting savings, or any other amount, to the pledge fund to buy and cancel carbon pollution units under the proposed emissions trading system.  This voluntary, tax-free action aims to allow individual Australians to directly contribute to achieving the nation’s emissions reduction targets.

The last area of focus for the ACT is the development of a national carbon offsetting standard, which aims to produce immediate carbon savings through site audits. It is understood that the standard will match existing methodologies — Clean Development Mechanism, auditing standard used by the National Greenhouse and Energy Reporting Act, etc.