Carbon Markets

UPDATE: Safeguard Mechanism Discussion Paper – Understanding the key policy settings

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

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is expected to release a Discussion Paper on proposed amendments to the  Safeguard Mechanism late this week, seeking feedback from stakeholders on improvements to align the scheme with Australian Labor Party (ALP) policy.

Prior the 2022 federal election, the ALP released modelling of its climate policy framework, “The Economic Impact of the ALP’s Powering Australia Plan”, undertaken by RepuTex, including policy measures for Industry & Carbon Farming sectors. The ALP adopted many of the proposals recommended by industry groups to improve the Safeguard Mechanism, with emissions baselines to be reduced predictably and gradually over time to align with net-zero emissions by 2050.

Several policy settings have subsequently been modelled by RepuTex to inform the design of an efficient and effective ‘baseline and credit’ market mechanism, supported by rules for the calculation of emissions baselines, the treatment of new facilities, the treatment of emissions intensive trade exposed (EITE) facilities, and the use of carbon credits and offsets (Safeguard Mechanism Credits and Australian Carbon Credit Units).

In this update, we summarise our modelling assumptions and outputs, helping to inform how the Safeguard Mechanism may be aligned with the ALP’s target to reduce emissions by 43% on 2005 levels by 2030, and net-zero emissions by 2050, and the key policy settings required to develop a credible, scalable emissions market.

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: Liquidity, prices continue to rise as bullish sentiment drives record traded volumes

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

    The Australian Carbon Credit Unit (ACCU) market saw strong gains in both price and volume […]

    Research Insights | January 23rd, 2023
  • Carbon Markets

    UPDATE: ACCU prices rise as Safeguard Mechanism position paper spurs market confidence, forward activity

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

    Market certainty brought about by the release of the Safeguard Mechanism reform position paper, and […]

    Research Insights | January 16th, 2023
  • Carbon Markets

    IN FOCUS: Safeguard Mechanism policy threads the needle to addresses structural concerns

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

    The government yesterday presented its detailed design proposal for the Safeguard Mechanism emissions compliance framework, […]

    Research Insights | January 11th, 2023
  • Carbon Markets

    ON POINT: Summary of proposed Safeguard Mechanism 2.0 policy positions

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

    The below summary of proposed policy positions is derived from the Government’s policy position paper, […]

    Research Insights | January 11th, 2023
  • Carbon Markets

    MR: Safeguard Mechanism reform to trigger a “structural change” in Australia’s carbon market

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

    MELBOURNE, January 10, 2023 – The government has today presented its detailed design proposal for […]

    Research Insights | January 10th, 2023
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone