On July 1, 2023, the federal government’s strengthened Safeguard Mechanism legislation came into effect. These reforms were designed to lift the ambition of this policy and guide investment decisions in the industrial sector, to drive real and substantial emissions reductions. Our Safeguard Mechanism FAQs explore key details of this vital policy reform.
The federal government has accepted each of the recommendations delivered by its Independent Review into ACCUs in principle, and is currently rolling out its ACCU Implementation Plan. These changes will ensure Australia’s domestic carbon market is fit-for-purpose, however ongoing review of the scheme will reinforce its role as one key tool in Australia’s climate policy suite. In the first half of 2023, CMI published a market brief unpacking the Review’s key recommendations in more detail.
