Energy Minister Chris Bowen launched the highly anticipated Safeguard Mechanism review on Friday, revealing it would probe whether its current settings would help to achieve Australia’s 2030 climate target and what should change for the coming decade.
The announcement comes after the federal government announced plans to reduce climate emissions by 62 to 70 per cent by 2035, and after widespread criticism from environmental groups for the policy’s use of carbon offsets.
The Safeguard Mechanism applies to more than 200 facilities that emit more than 100,000 tonnes of greenhouse gases a year, including coal mines, liquefied natural gas plants, steelworks, aluminium refineries, and large manufacturers.
It places an annual emissions cap on each facility that reduces over time, and can be met by carbon cuts or credits.
The policy review will investigate whether limits are set correctly to meet Australia’s 2030 emissions target of a 43 per cent reduction on 2005 levels, and determine the settings to help meet the 2035 goal.
