The Australian Parliament has passed the Safeguard Mechanism (Crediting) Amendment Bill 2023 to establish the framework for key elements of the Safeguard Mechanism reforms.
The reforms will ensure Australia’s 215 largest emitters play their part in meeting the nation’s national climate targets of 43 per cent below 2005 levels by 2030 and net zero by 2050.
The covered facilities account for around 28 per cent of Australia’s emissions production across mining, oil and gas production, manufacturing, transport and waste facilities.
Minerals Council of Australia Chief Executive Officer Tania Constable said Australia is better placed with its resource base than any nation to reap the benefits of the new-energy transition, which is why climate policy must thread the needle carefully.
“The MCA will be checking every detail of the amendments to the Safeguard Mechanism legislation carefully.”
She noted the challenges to meet the Safeguard Mechanism shouldn’t be underestimated.
“If we are not careful, some facilities in Australia will close.
“Not only would that damage our economy and slash tens of thousands of regional jobs and billions in investment, it also would push the emissions reduction burden on to other nations that are less able or less willing to decarbonise.
“The Greens’ demonisation of coal also does not help the Australian economy, particularly as the nation continues to rely on coal powered energy generation to keep the lights on and keep prices down.
Ms Constable said the MCA will continue to work with stakeholders to reduce emissions and play a part in climate objectives, including developing resources needed for critical minerals and metals.
“Australian mining companies have been charting their own paths towards net zero, investing billions of dollars annually in the technology required to meet their ambitions and reducing their carbon footprint.”