Mining, manufacturing targeted in climate target ‘safeguard mechanism’

The nation’s biggest mining and manufacturing operators will need to cut emissions by 28 per cent by 2030 under an Albanese government plan to make major polluters pull their weight on climate targets.

Mining and large manufacturers will be forced to cut emissions by 28 per cent by 2030 under the Albanese Government’s plan to make Australia’s biggest polluters contribute to its climate targets.

Initial reactions from industry to the draft proposal strengthening the “safeguard mechanism” released by Climate Change and Energy Minister Chris Bowen on Tuesday were cautiously welcoming, but the Coalition condemned the move as a “killer” of regional Australia.

“Reforms to the safeguard will help create an effective, equitable and efficient trajectory to net zero (by 2050),” Mr Bowen said.

Under Labor’s package the 215 facilities captured by the mechanism would have to reduce their emissions by 4.9 per cent until the end of the decade, which the government has estimated would have an impact equivalent to cutting emissions from all cars by two thirds.

From July big polluters will have the option to offset their emissions by purchasing carbon credits from others that are ahead of their targets.

The mining and manufacturing industries

will be forced to cut emissions by 28 per cent by 2030.

To assist with the cost of transition, trade exposed facilities at risk of losing to international markets would be eligible for a share in $600 million set aside in the government’s $1.9 billion Powering the Regions Fund.

Some facilities may also apply to reduce emissions at a slower rate if costs are still too high.

Minerals Council of Australia chief executive Tania Constable said the mining industry welcomed the “cost containment” measures and would take a “constructive approach” to the proposed changes.

“It’s important that we also keep our manufacturing and export industries strong and competitive, particularly when households and businesses are doing it tough in Australia,” she said.

“The safeguard mechanism imposes restrictions on industry emissions, that’s technologically challenging for our industries in different ways.

“Not least of all some of the technologies are not readily available at this stage, for example to electrify our mine sites.”

Minerals Council Chief Tania Constable. Picture: Gary Ramage

Australian Industry Group chief executive Innes Willox said the draft was “pragmatic,” but warned there was a “lot more work to do”.

“The government’s initial measures to help trade exposed facilities invest in their future and to moderate their potential costs will be helpful,” he said.

“However, trade exposure will grow more challenging over time as emissions baselines come down, particularly where alternative clean production processes continue to display a cost premium.

“Tweaking funds or decline rates will not be enough to resolve that.”

Mr Bowen said he believed it was a “balanced package” that demonstrated the government had “listened” to industry as well as taken “feedback on board” from people in the climate movement.

He reiterated his guarantee that there would be no net job losses as a result of the safeguard changes.

“The world’s climate emergency is regional Australia’s jobs opportunity,” he said.

Chris Bowenbacked the reforms as a “balanced package”.

But Coalition climate change and energy spokesman Ted O’Brien described the safeguard proposal as a “killer” that would “smash the regions”.

“You inflict pain on businesses, it compromises jobs and hurts households,” he said.

“And regional Australia is set to be the biggest casualty as that’s where most of these businesses are based.”