The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has today relesed a Consultation Paper on options to reform the Safeguard Mechanism to reduce emissions in line with Australia’s emissions reduction targets.
The government is accepting submissions on the discussion paper until September 20, with a more detailed policy proposal to be released in December. Final rule changes are expected to be legislated by March 31, ahead of the enhanced mechanism taking effect from July 1, 2023.
Industry consultation will seek views on design issues including:
- setting baselines for existing and new facilities;
- setting indicative rates for baseline decline;
- lowering costs through crediting over performance and the use of offsets;
- identifying options for tailored treatment for emissions-intensive, trade-exposed businesses; and
- taking account of available and emerging technologies.
If you have any questions or comments, please contact our Client Services team.
The RepuTex Team
Australian Energy Markets