Quotes attributable to John Connor, CMI CEO:

“Most business will again be deeply disappointed that effective carbon policy and a sensible debate has been overtaken by partisan politics.”

“While many would prefer a fuller cap and trade carbon pricing mechanism, the Safeguard Mechanism is the best place to start a policy that provides clearer investment guidance and guardrails for the task of industrial decarbonisation.”

“That is why it has been supported by the BCA and AIG and many others.  Indeed in our last Australian Climate Policy Survey in 2021, 79% of business supported strengthening the Safeguard Mechanism, and believed mandatory baselines should be set to reduce over time in line with the trajectory of Australia’s 2030 emissions reduction target.”

“The current Safeguard Mechanism not only requires large emitting companies to manage and measure their emissions, but also requires some to respond to compliance requirements and purchase additional carbon reductions in the form of Australian Carbon Credit Units.  In fact, there was a 70% increase in that requirement last financial year, with almost half a million ACCUs (419,315) being required to be surrendered.”

“Based on the spot price trajectory during this period, and excluding things like direct offtake agreements and forward transactions, that would make for a value of over $15 Million on some estimates.”

“This is not an insignificant compliance investment requirement and we believe it should also be linked to overall emission reduction goals, including at least 50% emissions reductions for Australia by 2030.”

About the Carbon Market Institute

The Carbon Market Institute is the independent industry association for business leading the transition to net zero emissions. Its over 130 members include primary producers, carbon project developers, Indigenous corporations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries developing decarbonisation and offset strategies.

If you have questions or require further information, please contact Thomas Hann on 0408 880 536 or via email: thomas.hann@carbonmarketinstitute.org

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