With consultation on the 2026–27 Safeguard Mechanism Review now closed, attention is turning to one of the Review’s more contentious questions – whether new restrictions are needed to reduce industry’s reliance on ACCU offsets.
While limits on ACCU use could increase the cost of offsetting and strengthen incentives for onsite abatement, our modelling indicates that quantitative restrictions are unlikely to deliver significant additional emissions reductions, and could exacerbate emerging structural weaknesses in the carbon market.
In this Insights article, we discuss our submission to the Safeguard Mechanism Review, and consider whether limits on ACCU use are a viable tool to
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