“While debate over the detail of the reformed Safeguard Mechanism will continue, the crediting Bill before Parliament is essential policy infrastructure and it is strongly in everyone’s interest to pass it,” Innes Willox, Chief Executive of the national employer association Ai Group, said today.
“The Safeguard Mechanism (Crediting) Amendment Bill 2022 would provide a firm basis in law for the automatic issuance of Safeguard Mechanism Credit carbon units to facilities covered by the Safeguard Mechanism that undershoot their allowable emissions baseline. That legal clarity is needed for industry investment and for any political party’s climate policy vision to work.
“Getting industry emissions down in line with Australia’s 2030 emissions target, and to net zero by 2050, will require transformational investments by industry. While climate policy will keep evolving, fundamentals like clear property rights in carbon units have to be clear or investments simply will not take place at the pace, scale and cost-effectiveness that we all want to see.
“The former Coalition Government proposed Safeguard crediting as part of its efforts to extend abatement activity to more sectors. We understand that the Australian Greens wish to see the Safeguard put more emphasis on reductions within covered facilities rather than outside them; Safeguard Mechanism Credits are central to delivering that.
“There is more discussion to come about many aspects of the Safeguard reforms, from the treatment of Trade Exposed Baseline Adjusted industry to the scope for use of Australian Carbon Credit Units. Those issues should be addressed through the current consultation and the upcoming scrutiny of updated Safeguard Regulations. But the Bill actually before Parliament right now would help all sides achieve their aspirations. Blocking it risks being self-destructive,” Mr Willox said.
