The Morrison Government is inviting industry to have a say on the design of a new Safeguard Crediting Mechanism that will help Australia's largest energy using businesses adopt new technologies that will reduce energy costs and emissions while maintaining or increasing their competitiveness.
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 Angus Taylor 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."
The 2021-22 Budget committed $279.9 million over 10 years to allow the Clean Energy Regulator to purchase abatement from businesses under the new Safeguard Crediting Mechanism.
Submissions can be made via the Consultation Hub on the Department of Industry, Science, Energy and Resources website https://consult.industry.gov.au/> and by clicking the "Make a Submission" button.
