Potential adverse impacts on BlueScope from the Federal Government’s safeguard mechanism to reduce emissions, which comes into effect on July 1, have been materially alleviated, according to the company.
Under the mechanism, the nation’s heaviest-polluting companies will be forced to cut their carbon footprint by up to about 5 per cent a year from July 1 until the end of the decade. However, manufacturers of products including steel, cement and aluminium – whose processes depend on fossil fuels but do not yet have commercially viable electric alternatives – will have to cut their carbon footprints by only 1 per cent a year. They will also have access to $400 million in grants to help them transition to cleaner operations.