The Federal Government is inviting feedback on the design of a new Safeguard Crediting Mechanism that will help Australia’s largest energy-using businesses to adopt new technologies to reduce their energy costs and emissions.
The existing Safeguard Mechanism provides a framework for Australia’s largest emitters to measure, report and manage their emissions. It applies to more than 150 businesses across the industrial, manufacturing, mining, transport and oil and gas sectors.
The new Safeguard Crediting Mechanism would provide an incentive to businesses to reduce their energy costs and emissions by undertaking transformative projects.
The policy was a recommendation by the 2020 Expert Panel review, led by Mr Grant King, which looked at ways to unlock low-cost abatement across the economy.
Minister for Energy and Emissions Reduction, the Hon. Angus Taylor MP, said the Government’s technology not taxes approach meant reducing emissions without imposing new costs on households, businesses or the economy.
“Many of the businesses covered by the Safeguard Mechanism produce goods for export, or compete with products imported from overseas. They operate in a highly competitive international trade environment and are critical to our economy,” Minister Taylor said.
“That’s why our approach is focused on building voluntary markets and incentives to accelerate the adoption of new technologies.”
“The Morrison Government knows the best way to reduce emissions across the economy is to drive innovation and technology, and we are doing this without imposing new costs that would hurt businesses and communities, or destroying jobs,” he said.
Chief Executive Officer of the Minerals Council of Australia (MCA) Tania Constable, said the Safeguard Crediting Mechanism Discussion Paper reinforces the advocacy by Australia’s minerals industry for technology development and deployment as central to emissions reduction for the sector, Australia and the world.
“Australian mining is a leader in technology development and adoption, especially to support lower emissions. The sector’s track record in deploying world’s best leading edge technologies has underpinned greater productivity, safety and capacity expansion while reducing emissions,” Ms Constable said.
“The MCA’s Climate Action Plan Progress Report released in June shows that the mining industry is already playing its part in developing and deploying critical technologies to reduce emissions.”
“This includes investments in renewable energy, electric haul truck development, battery storage technologies, carbon capture use and storage (CCUS) partnerships, while exploring the potential for small modular nuclear reactors.”
“The MCA will engage with the government on this important policy development process,” she said.
Have your say on the Safeguard Crediting Mechanism here.