In January 2023, the Albanese Government revealed planned reforms of the Safeguard Mechanism to ensure Australia meets its 43% emissions reduction target by 2030, and remains on the road to net zero emissions by 2050.
The Safeguard Mechanism, introduced in 2016, imposes limits on Australia’s largest greenhouse gas emitting industrial facilities – those that release at least 100,000 tonnes of Scope 1, or direct, emissions each year.
The reforms will directly impact the roughly 215 facilities that account for 28% of Australia’s emissions – among them the nation’s largest listed companies.
The release of the Australian Government’s position paper answers some questions. But other questions remain unanswered, and many details are unsettled.
The EY Net Zero Centre’s climate change strategists have dug into the detail and prepared a new paper to help EY clients to make the right decisions as the reforms roll out.