Safeguard Mechanism Reform (2022-2023)

​​Australian associations adopt mixed positions on the proposed design of the Safeguard Mechanism Reforms. The South Australian Chamber of Mines and Energy (SACOME) appeared to oppose key components of the Australian Government’s reforms in its February 24 submission on the proposed design of the mechanism. SACOME called for a delayed implementation of the reforms and for “far greater” financial assistance to EITE facilities. ​Both the Australian Petroleum Production and Exploration Association (APPEA) and Woodside called for expanded support for emissions intensive facilities and supported the proposed price cap on Australian Carbon Credits, while APPEA also advocated for further cost containment measures. ​​​

The Carbon Market Institute actively supported the proposed reforms to the Safeguard Mechanism in its February 27th submission, advocating for the ratcheting of baseline decline rates from 2030 and the expansion of the scheme. Further, in a statement on the Safeguard Mechanism Reforms at the 27-28th February Senate Standing Committee Public Hearing on the Safeguard Mechanism (Crediting) Amendment Bill, CMI actively supported the policy, calling for broader coverage of the scheme. CEO John Connor also appeared to express support for a "budget approach" to limit future fossil fuel investment. CMI Director Kurt Winter went on to issue support for the implementation of a climate trigger in the Environment Protection and Biodiversity Conservation Act.

​​News that the main opposition party will oppose Labor’s proposed reform of the Safeguard Mechanism appears to have not been welcomed by industry groups. In an Australian Financial Review article posted on January 31st, the Business Council of Australia CEO Jennifer Westacott stated that it still supported the reforms, as did Ai Group CEO Innes Willox who stated that it was in everyone’s interest for the reforms to pass. The CEO of the Australian Chamber of Commerce and Industry also stated that the legislation must pass ‘for the sake of certainty and the achievement of our emissions' reduction goals’​

In a January 10th press release, Carbon Market Institute (CMI) CEO, John Connor, welcomed the release of the Albanese Government’s draft Safeguard Mechanism Rules. Connor stated that the draft Rules were an important step forward in guiding the decarbonization of Australian industry, whilst also emphasizing the need for baseline decline rates to be steepened over time.

A number of Australian companies and industry associations have provided statements on the Safeguard Mechanism Reforms at the 27-28th February Senate Standing Committee Public Hearing on the Safeguard Mechanism (Crediting) Amendment Bill. Both the Business Council of Australia (BCA) and the Ai Group urged the bill to be passed, while stating support for provisions for emissions intensive facilities. The BCA and the Ai Group also opposed demands from the green party to ban new fossil fuel projects.

Orica provided a statement on the Safeguard Mechanism Reforms at the 27-28th February Senate Standing Committee Public Hearing on the Safeguard Mechanism (Crediting) Amendment Bill. Orica stated general support for the Safeguard Reforms, although it also advocated for the extension of deemed surrender provisions,

In a January 11th Sydney Morning Herald article, Minerals Council of Australia CEO, Tania Constable, appeared to emphasize the need to keep trade-exposed export industries strong and competitive under reforms to Australia’s Safeguard Mechanism.

Minerals Council of Australia CEO, Tania Constable, has welcomed the inclusion of a cost-containment measure in the Australian government’s proposed Safeguard Mechanism reforms, as reported on January 10th by the Australian Financial Review. Constable appeared to advocate for a lowering of the price cap on Australian Carbon Credit Units to $50, stating that the $75 figure was still relatively high.