Carbon Markets

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

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

Become a Carbon Insider today

Unlock our latest analysis, briefings and price information with our new Carbon Insider service.

Click below to see our plans.

Sign up for regular insights

LATEST UPDATES

  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Buyers ‘rush to regeneration’ ahead of ACCU review – but are HIR projects without risk?

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

    The price for Australian Carbon Credit Units (ACCUs) has continued to drift sideways, with spot […]

    Research Insights | July 4th, 2022
  • Carbon Markets

    REPORT: Modelling Potential Futures for Australia’s Safeguard Mechanism (Carbon Market Institute)

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

    RepuTex has been engaged by the Carbon Market Institute (CMI) to analyse the current operation […]

    Research Insights | June 30th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Nature-based ACCUs dominate as divergence between broker and bilateral spot price grows

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

    The spot price for Australian Carbon Credit Units (ACCUs) fell 0.7% on the week, with […]

    Research Insights | June 13th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Positive sentiment returns as ACCU buyers favour regeneration over land-based avoidance projects

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

    The change of government has proven to be supportive for the local ACCU market, with […]

    Research Insights | May 30th, 2022
  • Carbon Markets

    INSIGHTS: Election 2022 – Market impacts, and where to next for the ALP’s “Safeguard Mechanism 2.0”?

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

    The Federal Election has been run and won, with the Australian Labor Party (ALP) confident […]

    Research Insights | May 24th, 2022
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone