The government plans to reform its CO2 emissions Safeguard Mechanism in line with its stated goal of net zero CO2 emissions by 2050. Under the latest proposals, 215 industrial plants, including Australia’s cement plants, will have to reduce their CO2 emissions by 4.9 per cent YoY every year until 2030. The Australian newspaper has reported that the government is currently receiving submissions on the proposed reform as part of its consultation process, which will end on 24 February 2023. The Business Council of Australia and the Australian Industry Group have encouraged the government to introduce an adjustment mechanism for imports, based on the EU’s Carbon Border Adjustment Mechanism (CBAM), in conjunction with any tightening of the Safeguard Mechanism.
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