ASI has successfully lobbied the Federal Government through the Australian Chamber of Commerce and Industry for important concessions to help limit the costs for its larger manufacturers of complying with Australia’s 43% emissions reduction target by 2030.
Chief among the changes to the Federal Government’s Safeguard Mechanism Bill fought for by ACCI on behalf of ASI and the steel industry and agreed by the government last month include:
- The Federal Government will commission a review to examine the feasibility of an Australian carbon border adjustment mechanism (CBAM). Border adjustments would typically apply fees on imported goods based on the greenhouse gas emissions generated. The review will give particular consideration to a CBAM for the steel and cement sectors (including clinker and lime production).
- A targeted $400m for industries including steel to help them decarbonise, in addition to both the $600m Safeguard Transformation Stream and other funding pools.
- Reducing the minimum annual baseline decline rate for steel to 1 per cent, down from 4.9%.
The updated Safeguard Mechanism scheme will be in operation from 1 July, 2023.