The Federal Government will make significant changes to its Safeguard Mechanism policy that will bring greater accountability to some of Australia’s heaviest greenhouse gas emitters, writes EcoGeneration editor Gavin Dennett.
The Greens have succeeded in forcing the Federal Government to make a raft of amendments to its Safeguard Mechanism policy, which requires Australia’s largest greenhouse gas emitters to keep their net emissions below a baseline limit.
The Greens and Labor were at loggerheads on the direction of the proposed legislation, but the two parties came to an agreement on 27 March, 2023, to make several significant changes that will have serious ramifications for any proposed new oil and gas projects, making it difficult for them to be approved.
The Greens are lauding the changes as a major win for the party, with the inclusion of a hard cap on emissions – among several other amendments – meaning Australia’s biggest polluters will be accountable for their emissions with ceiling limits in place.
“Coal and gas have taken a huge hit,” said Greens leader Adam Bandt.
“Through our negotiations on the Safeguard Mechanism, the Greens have stopped about half of the 116 new coal and gas projects in the pipeline from going ahead.
“The Safeguard Mechanism, which regulates Australia’s 215 biggest polluters, will now have a hard cap on emissions, meaning real pollution must actually come down and the coal and gas corporations can’t buy their way out of the cap with offsets.
“This puts a limit on coal and gas expansion in Australia.”
The Greens say the additional reforms agreed to by the party and Labor will derail the controversial Beetaloo Basin gas field fracking project in Northern Territory. All new projects in the region will now require net-zero Scope 1 emissions from the outset.
“We’ve forced the project to offset all emissions,” reads a Greens statement.
“This is a huge financial barrier to the project proceeding, and its viability is now in question.”
The Greens say the Safeguard Mechanism reforms will also scupper plans for Santos’ proposed offshore Barossa gas field in Australian waters near the Tiwi Islands, off the coast of Northern Territory.
“Santos will be required to offset all its CO2 emissions, placing a huge financial hurdle in the way of this project,” reads the statement.
Minister for Climate Change and Energy Chris Bowen said the “overdue, sensible” finalisation of the Safeguard Mechanism Bill is a key milestone in achieving Australia’s 43 per cent emissions reduction target by 2030.
“We are a step closer to achieving net zero by 2050,” he said in a statement.
“We thank those across Parliament who continue to approach this legislation in a constructive way to ensure accountability, transparency and integrity for the scheme, and ensure flexibility and support for industry.
“Business and climate groups have been clear Parliament should pass the strengthened legislation in front of it and deliver overdue policy certainty.
“These reforms are crucial to our climate and economy – supporting Australian industry and ensuring they will continue to be competitive in a decarbonising world.”
The Climate Council has thrown its support behind the strengthened Safeguard Mechanism, which will be in operation from 1 July, 2023.
“This will be Federal Parliament’s first reform to genuinely cut pollution in a decade,” says Climate Council CEO Amanda McKenzie.
“Almost one year ago, Australians sent a clear message at the polls that they wanted our Parliament to act on climate change. Now they are getting on with it.
“This will mean more clean, renewable power and less pollution.
“Finally, as a nation, Australia is starting to tackle the climate crisis.”
The Climate Council had been advocating for amendments to the Safeguard Mechanism, and worked with the Federal Government to offer guidance in Australia’s climate-change approach.
“The Climate Council has been meeting with politicians across Parliament to provide reliable, evidence-based information in advocating for a strengthened Safeguard Mechanism that will result in genuine emissions reductions,” says McKenzie.
“We welcome some of our suggestions being included. This proves how important and powerful a community-funded and independent climate organisation can be.
“This agreement is a massive wake-up call to any board or business executive who thinks they can keep stalling genuine climate action.
“The era of climate gridlock in Australia is over and the only viable path for any business is genuine, deep cuts to carbon pollution this decade.
“We thank and recognise every Parliamentarian who put Australians first in negotiating in good faith and will be passing laws that finally start to regulate the biggest polluters.”
Key improvements to the Safeguard Mechanism the Climate Council advocated for include:
- Capping total emissions under the Safeguard Mechanism to ensure new and expanded fossil fuel projects can’t blow out this carbon budget and drive up national emissions.
- Making new gas facilities fully accountable for their emissions from day one so they are not forcing other future-focused industries to make even deeper cuts to their emissions.
- Subjecting any new project that would add significantly to emissions under the Safeguard Mechanism to a rigorous assessment and acting on the findings of this.
- Ensuring public funding through the Powering the Regions Fund is not directed to coal and gas projects and only supports future-focused industries.
“The Safeguard Mechanism is just one weapon in the war to drive down Australia’s emissions,” says Climate Council head of advocacy Dr Jennifer Rayner.
“We need to throw the whole arsenal at tackling harmful climate change.
“As a priority, Australia needs strong environmental laws that properly consider climate impacts; an end to fossil fuel financing and public subsidies; much tighter limits on offsetting to ensure we are achieving genuine and steep emissions reductions; and a ban on greenwashing so coal and gas companies can’t keep gaslighting Australians about their climate plans.”