Safeguard mechanism with teeth needed

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on its submission to the Safeguard Mechanism reform.

Commenting on the appointment, Alex Hillman, Lead Carbon Analyst at the Australasian Centre for Corporate Responsibility (ACCR) said:

“Previous iterations of the Safeguard Mechanism have had little impact because industry has negotiated complicated rules and was allowed to set its own limits.

“Industry can not realistically set its own limits if we want real emissions reductions.

“Whilst emissions from the rest of the economy have decreased since 2005, Australian industrial emissions have increased by 17%. Industry is not only failing to reduce its emissions - they have been increasing. This is unacceptable.

“Industry analysis has concluded it can drastically reduce its emissions by 88%, so this is the time for a Safeguard Mechanism with teeth, there’s no longer any excuse not to.

“For industry to meet its fair share of Australia’s 2030 emissions reduction target, the Government will need to double the ambition for the Safeguard Mechanism, with annual reductions of at least 10 million tonnes of greenhouse gases. If carbon bombs like Browse and Beetaloo proceed, the associated emissions will transfer a greater emissions reduction task to every other Australian project.

“Strict limits must be placed on the use of carbon credits, which should be capped at 5% to prevent industry outsourcing its emissions reductions to the land sector.

“And although the LNG industry has already started calling for handouts and special treatment, the Government must remember that the last carbon price didn’t stop Australia becoming the world’s biggest LNG exporter. Special treatment is unnecessary and risks not only the efficiency of our own policy, but also a vast increase in global emissions.”