The Australian carbon market has rung in 2023 with the release of two anticipated updates: the independent review of the ACCU program and the government's proposal for new settings for their Safeguard Mechanism.
While some details are still emerging, it is expected that these updates are a net positive for the future of Australian voluntary and compliance policies. You can read more below.
The Chubb Review: change coming, but fundamentals deemed sound
The review disagreed with recent challenges to the integrity of Australian Carbon Credit Units (ACCUS), but outlined 16 recommendations to increase transparency and credibility. Our commentary considers:
Proposed governance reform
Future supply of ACCUs and over-crediting
Future demand of ACCUs
The Safeguard Mechanism: increased ambition with an eye to international competition and compliance
The reworked policy looks to improve upon what has historically been an ineffective tool for pursuing emissions reductions, while still providing concessions to industry.
Our commentary considers:
New baselines
Emissions trading with cost containment
Emissions-intensive, trade-exposed industries
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