ANALYST UPDATE: “Two phase” safeguard scheme emerging

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

Last Thursday, Environment Minister Greg Hunt lodged the administrative rules for the operation of the Emissions Reduction Fund “Safeguard Mechanism”, the final component of the government’s Direct Action Plan policy.

The new regulation is largely in line with the government’s earlier draft rules, released in September, providing high emitting companies with headroom to grow emissions, coupled with flexibility to avoid compliance obligations should baselines be at risk of being breached.

The final text of the legislative rules includes:

  • No substantive change to the operation of emissions baselines or scheme coverage as detailed under the draft rules.
  • The definition of a specific window for a review of the policy, commencing on 30 June 2017, reporting by 15 November 2017.
  • As we anticipated in our earlier Analyst Update, the scope of the policy review has been broadened to consider the operation of the safeguard mechanism in the context of Australia’s 2030 emissions reduction target.

We discuss the implications for covered entities and offset providers below.

Restricted Access

To continue reading this post, register below.

Continue reading this article

To continue reading this free article, simply click “register now” to access our free insights & events.

Access is free, and instant! Sign up below.

Register Now

Sign up to receive our research alerts

Create a free account to access our free insights and event invitations, and receive our research alerts via email. Access is complimentary, and instant. Sign up below:

Sign up for regular insights

LATEST UPDATES

  • Aligning Australian industry with net-zero emissions under the Paris Agreement

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

    While the government continues to reject calls for a net-zero emissions target, policymakers are unlikely […]

    Research Insights | October 27th, 2020
  • Could LGCs boost carbon offset liquidity, and support renewable energy investment?

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

    The Large-scale Renewable Energy Target (LRET) requires liable entities to meet their compliance obligations by […]

    Insights, Research Insights | October 13th, 2020
  • WEBINAR: Wholesale electricity price forecast for the National Electricity Market

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

    In this event, we discuss the outcomes of our latest quarterly Australian Electricity Outlook (AEO) […]

    Research Insights, Webinars | September 14th, 2020
  • Perfect storm drives down NEM wholesale electricity prices, but “the only way is up”?

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

    In this update, we discuss our expectations for wholesale prices in the National Electricity Market […]

    Research Insights | August 25th, 2020
  • OUTLOOK: NEM wholesale electricity and LGC price forecast 2020-40 (Q4 FY20)

    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 […]

    Outlook, Research Insights | August 21st, 2020
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone