ANALYST UPDATE: Safeguard scheme to erode ERF abatement?

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

Following a short delay, the government’s “safeguard mechanism” Discussion Paper is expected to be released over the next fortnight, with Australia’s updated Abatement Task and Emissions Projections also in the Department’s short-term pipeline (due prior to the end of March).

While the Coalition is expected to establish a ‘light touch’ safeguard scheme – minimising the exposure for the coal and gas industries – the final shape of the baseline mechanism is far from settled, with growing concern that the scheme will fail to live up to its name, and adequately “safeguard” ERF investment.

In this Analyst Update we explore the sensitivities in designing the safeguard mechanism, with analysis indicating that rules which fail to offset emissions from new or expanded facilities will fully erode abatement purchased by the ERF, and may bring the Senate’s veto power directly into play.

Please login to access our full Analyst Update, titled “Safeguard paper looms – Emissions growth to erode ERF abatement”, published under our Carbon Market Intelligence service.

Restricted Access

This is a subscriber report. Please login to access this content.

Not a subscriber?

To learn more about our research services for the Australian energy and emissions markets, click the button below, or email our subscriptions team.

Sign up for regular insights

LATEST UPDATES

  • Trading range narrows for Australian carbon spot price, but target pressure builds

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon spot price ended the 2020 calendar year down 4.5 per cent year-on-year, […]

    Research Insights | January 13th, 2021
  • Scenarios for the replacement of the Liddell power station

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    RepuTex has been engaged by Greenpeace Australia Pacific to analyse the impact of scenarios to […]

    Research Insights | November 27th, 2020
  • OUTLOOK: NEM wholesale electricity and LGC price forecast 2020-40

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, Our latest Australian Electricity Outlook (AEO) for medium- and long-term price development in […]

    Research Insights | November 26th, 2020
  • INSIGHTS: What is the current Australian carbon spot price?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Amid a recent surge in carbon neutrality pledges, many businesses are looking to offset the […]

    Research Insights | November 25th, 2020
  • OUTLOOK: Long-term Australian carbon price, supply and demand outlook

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian Carbon Credit Units (ACCUs) climbed back above $16/t in early September, […]

    Research Insights | November 2nd, 2020
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone
  • Quick Navigation

  • Electricity

    Learn more about our modelling and price outlooks for the NEM
  • Renewable Energy

    Learn more about our services for wind and solar developers
  • Carbon Market

    Learn more about our Australian carbon price and market analysis
  • Latest Insights

    View our latest articles, white papers, reports and publications