The Safeguard Mechanism is one of our central policies for reducing greenhouse gas emissions across the economy. It needs to be continually expanded and strengthened to ensure the biggest emitters do their part to enable a fast and fair transition.
That’s why our response to DCCEEW’s Safeguard Mechanism Review Consultation Paper highlights the importance of robust measures in the electricity sector from 2030, with key benefits including:
- Enabling a faster transition to renewables, causing grid supplied emissions and electricity costs to fall more rapidly;
- sending a strong investment signal to renewables developers; and
- minimising the use of fossil fuel generation beyond 2030.
What’s next?
The review will continue into 2027, with policy positions and any draft rule amendments released early in the year. The Climate Change Authority will advise the Australian Government on the appropriate baselines to apply from 2030.
Read more: Emissions budgets are key to climate targets
