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Industry welcomes climate safeguard reform

There are concerns the emissions budget within the government's safeguard mechanism will blow out.

There are concerns the emissions budget within the government's safeguard mechanism will blow out. Photo: AAP

The federal government has begun consultations to reform Australia’s safeguard mechanism which is expected to help achieve net zero emissions.

The mechanism applies to 215 facilities which produce more than 100,000 tonnes of greenhouse gases a year and was designed to ensure they reduce those emissions.

But while the mechanism’s framework is sound, its implementation had failed under the previous government prompting a need for reform, Climate Change Minister Chris Bowen said.

“The world’s climate emergency is Australia’s jobs opportunity, and a revamped safeguard mechanism will help Australian industry cut emissions and remain competitive in a decarbonising global economy,” he said in a statement on Thursday.

The industry-led Carbon Market Institute welcomed the government’s consultation paper for reform.

Safeguard mechanism reforms are vital to accelerate emissions reductions, institute chief John Connor said.

“The design elements need to be carefully considered to ensure that the evolved scheme can drive industrial decarbonisation, support industry and enhance Australia’s carbon competitiveness,” he said.

Poor ambition and policy design has previously seen emissions from facilities covered by the safeguard mechanism increase, he added.

The safeguard reforms are scheduled to begin on July 1, 2023.

The government will also review the ability of large emitters to purchase international carbon credits.

Mr Bowen told ABC radio the government would have to be “100 per cent satisfied” credit schemes were credible and there were real emissions reductions to allow large emitters to use them.

Meanwhile, the climate change bill is under the microscope as a Senate inquiry into proposed emissions-reduction measures begins.

Science and environmental groups, as well as business bodies, unions and research panels provided evidence on possible improvements to the government’s bill before it is debated in the upper house next month.

The proposed legislation, which passed the House of Representatives earlier this month, enshrines an emissions-reduction target of 43 per cent, based on 2005 levels, by 2030.

It also locks in plans to reach net-zero emissions by 2050 and includes a requirement for the government to provide annual updates on how well the targets are on track.

The government must work with existing technologies to reduce emissions, Business Council of Australia chief Jennifer Westacott told the committee on Thursday.

While nuclear options shouldn’t be ruled out in the future, the current priority should be to get to the emissions reduction target as quickly as possible, she said.

“We believe that we should be technology agnostic … the current priority is to work with the known technologies, the scalable technologies … but make sure we do not rule things out unnecessarily and we leave open the opportunity for technological advancement,” she said.

The Clean Energy Council has also advocated for strengthened emissions targets.

“It is important that the 2030 target, and all future targets, represent a minimum level of achievement, rather than an upper bound on effort,” a submission to the committee said.

The focus on improved climate change legislation comes as the Greens’ deputy leader Mehreen Faruqi called on the government to put in place fuel-efficiency standards.

In a speech to the National Electric Vehicle Summit on Friday, Senator Faruqi will call for urgent investment in charging infrastructure and discounts on electric vehicles.

The Greens say investment of more than $1 billion is needed to support electric vehicle manufacturers in Australia.

“We need policies to push out old, dirty and obsolete vehicles and policies to bring in clean, better, more efficient electric vehicles,” Senator Faruqi will say in the speech.

“We need the infrastructure to power up Australia’s new electric vehicles and our vehicle manufacturing industry.”

– AAP

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