Carbon Markets

REPORT: The Impact of New Entrants on the Safeguard Mechanism Emissions Budget

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

The Australian Government has released its design proposal for the reformed Safeguard Mechanism framework, outlining the establishment of a constraint on Scope 1 emissions from high emitting facilities, implemented via declining emissions baselines aligned with Australia’s 2030 target.

While the framework incorporates key measures to “ensure the 2030 target will be met”, the success of the proposed policy hinges upon the alignment of emissions baseline decline rates with the government’s adopted emissions trajectory, ensuring that the scheme will meet its calculated emissions budget. This is a challenging task given the future variability of industrial production, and uncertainty around new projects entering the scheme.

To understand the potential risks to meeting the Safeguard Mechanism emissions budget, RepuTex has been engaged by the Climate Council and the Australian Conservation Foundation to model the potential effects of higher-than-expected emissions growth due to variation in fossil fuel production, and new entrants, on the Safeguard Mechanism emissions budget through to 2030.

Specifically, analysis presents different scenarios for coal and LNG production, and the impact on Scope 1 emissions covered by the Safeguard Mechanism, evaluating the baseline decline rates required to meet the emissions budget where production growth is higher-than-expected. In doing so, analysis also considers alternative regulatory options for the treatment of new projects.

LATEST UPDATES

  • Carbon Markets

    UPDATE: Late surge in market momentum provides price support, collar trading leads derivatives activity

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Our latest Carbon Weekly report has now been published, reviewing activity in the Australian and […]

    Research Insights | December 16th, 2024
  • Carbon Markets

    ARTICLE: More SMCs, lower prices – New coal mine methane reporting to re-shape Australia’s carbon market

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Yesterday we published our latest Carbon Market Outlook (CMO) for the Australian carbon market, presenting […]

    Research Insights | December 13th, 2024
  • Carbon Markets

    IN FOCUS: A closer look at SMC creation, availability, and price dynamics ahead of first issuance

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    With the first compliance deadline under the reformed Safeguard Mechanism approaching, Australia’s largest emitting facilities […]

    Research Insights | December 12th, 2024
  • Carbon Markets Outlook

    OUTLOOK: Long-term Australian carbon price, supply, and demand outlook (ACCUs and SMCs)

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Our latest Carbon Market Outlook (CMO) for the Australian carbon compliance and voluntary markets has […]

    Market Outlooks, Research Insights | December 12th, 2024
  • Carbon Markets

    Merry Christmas! Our holiday support / office hours

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Season’s greetings from the RepuTex team. Please note our support hours over the Christmas and […]

    Notices, Research Insights | December 11th, 2024
  • Download this free report

    To start your free download, simply fill in the below form. You will also receive our future updates, event invitations, and research insights by email.

    • This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone