The Carbon Market Institute (CMI) has welcomed the parliamentary support for the passing of the Safeguard Mechanism, labelling the agreement for a strengthened Bill an important stepping stone for climate progress. However, it also highlighted that the scheme must be scalable and accompanied by complementary measures.
CMI supports the intent of the proposed amendments, particularly noting elements from its recommendations including a carbon budget that sets an overall limit on emissions, as well as greater transparency in the use of carbon credits as we undergo the transition.
“Today’s agreement is a positive development, and a real sign of climate progress after 10 years of political division and delay,” said CMI CEO John Connor.
“Ultimately, we needed a policy platform that urgently addresses industrial sector decarbonisation, and this agreement provides a stepping stone for progress. But it must scale over time to ensure it continues to drive the transition of Australia’s industrial sector and broader economy.”
“There appears to be a reasonable balance struck regarding transparency in the use and issuance of ACCUs, however we look forward to further detail on the implementation details for this.”
“As CMI Chair Kerry Schott AO said at the National Press Club last week, supply of Australian carbon credit units is not a magic pudding. This agreement will assist in creating extra demand drivers, however it will require ongoing diligence in order to build integrity as well as scale of ACCU supply.”
“The agreed amendments will provide much-needed enhancements to the current Bill, strengthening its integrity and ability to drive industrial decarbonisation. This must be viewed as a starting point for a scheme that must be regularly reviewed to meet the significant challenges of achieving net zero then negative emissions.”
“As we have called for in our submissions, this includes bringing forward the proposed milestone review to assess flexibility within the scheme and assess opportunities for expansion. The government will also require complementary policy measures to address Australia’s broader structural transition, such as the need for a formal independent transition authority and mandatory transition planning,” he said.
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a member-based institute accelerating the transition towards a negative emissions, nature positive world. It champions best practice in carbon markets and climate policy, and its over 150 members include primary producers, carbon project developers, Indigenous organisations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries. The positions put forward constitute CMI’s independent view and do not purport to represent any CMI individual, member company, or industry sector.
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