In October ClimateWorks Australia had the opportunity to respond to the Discussion Paper: King Review Safeguard Crediting Mechanism (the Discussion Paper) of the Department of Industry, Science, Energy and Resources (the Department).
- ClimateWorks is concerned that the proposed changes to the safeguard mechanism, on its own, will not provide the signal or impetus for the necessary transformative changes needed in Australia’s most emissions intensive facilities, at the scale and pace required to align with 1.5 or 2 degree scenarios.
- ClimateWorks can see potential issues in putting in place a safeguard crediting mechanism without broader changes to the safeguard mechanism, and recommends that the Department and/or the Climate Change Authority do further work to explore the impact that a new SMC market may have on the existing voluntary ACCU market.
- Additional changes to the safeguard mechanism could accelerate emissions reductions in the largest emitting industrial facilities in Australia, helping facilities to take advantage of the economic opportunities offered in the shift to net zero.
- A strong safeguard mechanism could be a key tool to support government ambitions to reach net zero emissions.