EIANZ welcomes the announcement this week that the Australian Parliament will amend the Safeguard Mechanism to help meet its commitment for a 43% reduction in CO2 emissions by 2030.

As demonstrated by the IPCC report released last week, broad and deadly effects of climate change can only be avoided by deep, rapid and immediate greenhouse gas emissions reductions.

The Safeguard Mechanism is Australia’s primary legislation that aims to reduce emissions and enable us to deliver on our commitment to limit global warming to 1.5°C. To date it has been ineffective.

The changes agreed this week indicate that Parliament is now willing and able to take real action to address climate change.  It should put all emitters on notice that strong action must be taken and soon.

The Safeguard Mechanism has applied to Australia’s top 215 industrial emitters (representing almost 30 per cent of Australia’s emissions) since 2016.  The proposed amendments, which are largely supported by many participants, will require these emitters to annually reduce their emissions (or buy offsets) in line with the Government’s 2030 target.  A “hard cap” will mean that emissions, especially from participants, can’t grow above starting levels through the purchase of offsets.

This announcement is a significant improvement in our response to climate change. It improves Australia’s credibility at home and overseas, gives clear direction to our top 215 industrial emitters, and puts others on notice.

But there remains much more to be done. Other sectors need defined pathways. Our targets should be reviewed in light of IPCC findings, and we must remain active in technology development and internationally.

Our members are committed to understanding, identifying, explaining and promoting practical solutions that achieve climate protection and regulatory compliance.

Find out more about safeguard mechanisms >
Find out more about the IPCC AR6 report >