The Federal Government wants to force companies to commit to annual emissions reductions targets with a reformed safeguard mechanism in place to hold them to it, new documents show. We say thank god for a little forward thinking today, but there are a few red flags.
The government released a consultation paper on Wednesday that outlined a policy reform that would see Australia’s big polluters required to reduce their carbon emissions by between 3.5 per cent and 6 per cent every year starting July 2023.
It’s a reform to the safeguard mechanism the Abbott Government introduced in 2016 as an alternative to Julia Gillard‘s proposed carbon tax. It aimed to prevent increases in industrial emissions, but in reality that simply did not happen.
Previously, companies and industries have faced no penalties for failing to meet targets or even increasing their emissions.
The new consultation paper covered more than 200 major polluting companies and industries, including coal mines, gas refining sites, manufacturing sites and airlines, that would be made to cut emissions.
The idea behind the reform is that it would help the government achieve its target of a 43 per cent emissions reduction by 2030. This target will soon be legislated after it passed the House of Reps earlier this month, meaning any government in power from now on will be legally required to meet the target.
But it’s not all good news. The paper says the companies would also have the option to buy carbon credits instead.
Carbon credits are an alternative way for companies to cancel out their emissions rather than actually reducing their output. For example they can show that when they build a new mine they’re actively cutting down fewer trees or damaging less habitat than they otherwise would have to do so. Sounds suss, right?
Credits can either be bought through taxpayer-funded schemes or on the private market so any company can appear to be meeting targets without actually changing their practices. They’re very controversial so let’s hope that part is removed from the final policy, but probably not.
The paper also proposed a carbon trading scheme which rewards companies for meeting their targets ahead of schedule with safeguard mechanism credits, which they could then sell on to other businesses that didn’t meet their targets. Basically the failed companies would just pay for the extra carbon.
The major red flag here is that Guardian Australia reported the proposed reform has been broadly supported by major business and industry groups so far.
The Climate Change Minister Chris Bowen said the reform would create jobs and support industries.
“A revamped safeguard mechanism will help Australian industry cut emissions and remain competitive in a decarbonising global economy,” he said.
So yes we still live in capitalist hellscape — let’s just pray this thing works and Australia it doesn’t turn into a literal hellscape of fire and brimstone in the next 10 years.
