The Federal Government has welcomed comment on its new Safeguard Crediting Mechanism which seeks to benefit large carbon emitters by reducing energy costs.
If implemented, the mechanism would incentivise more than 150 businesses across the industrial, manufacturing, mining, transport, and oil and gas sectors to reduce energy costs using transformative and sustainable projects.
Minister for Energy and Emissions Reduction Angus Taylor said it was important to satisfy these businesses as they were crucial to Australia’s future trade.
“Many of the businesses covered by the Safeguard Mechanism produce goods for export or compete with products imported from overseas,” Taylor said.
“They operate in a highly competitive international trade environment and are critical to our economy.
“That’s why our approach is focused on building voluntary markets and incentives to accelerate the adoption of new technologies.”
The mechanism was a recommendation from the 2020 Expert Panel review, led by Grant King, which assessed low-cost sustainable solutions for these Australian sectors.
Submissions to a discussion paper on the mechanism’s implementation are open until October 5 2021.
The Minerals Council of Australia (MCA) chief executive officer Tania Constable said the Council would eagerly engage with the process, as it sees Australia’s minerals industry as a key to the country’s emission-reduction goals.
“The MCA will engage with the government on this important policy development process,” Constable said.
“The release of the government’s Discussion Paper: King Review Safeguard Crediting Mechanism reinforces the advocacy by Australia’s minerals industry for technology development and deployment as central to emissions reduction for the sector, Australia and the world.”