The Australian Government announced that the amendments to the Safeguard Mechanism have passed through Parliament.
The changes will reduce 205 million tonnes of greenhouse gas emissions by 2030. The Federal Government said the passage of the legislation guarantees that Australia’s biggest emitters stay globally competitive in a decarbonising global economy while also contributing to Australia’s emissions reduction target.
According to the Government, the design has been strengthened via collaboration and consultation with the industry and constructive members of Parliament, ensuring flexibility and support for the industry’s capacity to compete while delivering accountability, openness, and integrity.
The Safeguard Government was introduced by the former Coalition Government in 2016. It requires facilities that emit more than 100,000 tonnes of greenhouse gas emissions per year (about 215 facilities) to keep their net emissions below a certain level (or ceiling).
Minister for Climate Change and Energy Chris Bowen described the parliamentary passage of the Safeguard Mechanism Bill as a watershed moment for Australia’s economy and climate.
“Passage of this legislation is the culmination of extensive feedback from Safeguard businesses, industry associations, climate and community groups, academics and private individuals,” Minister Bowen said.
According to Minister Bowen, the measures have received widespread support from the Business Council, the Climate Council, Manufacturing Australia, to the Australian Conservation Foundation.
“We thank those across the Parliament who engaged in good faith discussions to ensure accountability, transparency and integrity for the scheme, and ensure flexibility and support for industry,” Minister Bowen added.
The amended Safeguard Mechanism scheme will go into effect on 1 July 2023.
