Extract from ABC News
The Australian government will begin consulting industry and broader stakeholders on how to strengthen the centrepiece of its commitment to reduce emissions by 43 per cent this decade.
Key points:
- The government has released a paper on changes to a major policy designed to reduce emissions
- Consultation will run until end of September with changes to apply from July next year
- A recent report shows Australia is not on track to meet its 2030 target
The safeguard mechanism technical and design paper looked at the setting of baselines, or limits, for new and existing facilities, the use of offsets and how to tailor treatment for emissions-intensive and trade-exposed businesses.
Submissions are due to close in late September with a more detailed design proposal for the safeguard mechanism to be open for feedback later this year.
The reforms have been scheduled to take effect from July next year.
The mechanism was designed by former federal environment minister Greg Hunt and introduced in 2016 to place emissions limits — also referred to as baselines — on Australia's 215 largest emitters.
To be subject to the mechanism, facilities must emit more than 100,000 tonnes of greenhouse gases a year — a threshold the government has committed to stand by.
The Albanese government has vowed to strengthen the mechanism, referring to data that illustrated emissions from facilities covered by it accounted for 28 per cent of Australia's total emissions in 2020-21.
Options for gradually and predictably setting and reducing baselines, or limits, under the mechanism were laid out in the paper to provide for stakeholder feedback.
The paper set out tailored conditions for emissions-intensive, trade-exposed industries to avoid them being put at competitive disadvantage and prevent emissions leaking overseas.
Multi-year compliance periods were also open for discussion to allow for facilities to match emerging technology.
Final emissions decline rates were not finalised as they required other policy settings to be decided but indicative rates were expected to be between 3.5 and 6 per cent each year.
Post-2030 decline rates could be set in longer, five-year blocks.
The government said the mechanism would deliver additional certainty for Australia's largest emitters and build on the work already underway as the country moves to net zero emissions by 2050.
Balancing reduction and competitiveness
Minister for Climate Change and Energy Chris Bowen said he expected the consultation process to ensure the mechanism delivered both economic growth and emission reduction targets.
"We went to the election saying we would reform the safeguard mechanism by working in partnership with industry and key stakeholders and that is exactly what we are doing," he said.
"We are building on the existing architecture of the safeguard mechanism but getting the settings right to get emissions heading downwards while supporting industry competitiveness.
"A revamped safeguard mechanism will help Australian industry cut emissions and remain competitive in a decarbonising global economy."
Greens leader Adam Bandt has previously signalled his party will push for amendments to the mechanism which would shut down future coal and gas projects.
Mr Bowen has previously shut down the prospect of a moratorium on new coal and gas being included through the mechanism, confirming the government would implement its election plan "without alteration".
Around 80 per cent of Australian trade was already covered by other countries' commitments to reach net zero emissions.
Report finds Australia not on track to reach 2030 target
A report by climate change advisory firm Ndevr Environmental found Australia had spent its CO2 budget, as calculated by the Climate Change Authority, for a 17-year period in less than nine-and-a-half years.
It found annual emissions for the year-to-March 2022 including land use change exceeded the 2030 target.
The paper found LNG exports were behind an increase in industrial and fugitive emissions.
Figures in the report projected emissions for the third quarter of this year would exceed the 2030 target by 11.5 per cent or 12.6 million tonnes of carbon.
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