Mining and manufacturing groups are pressing the Coalition to support for the government’s plan to expand carbon credits for big emitters, after the Greens voiced resistance.
, 215 of the largest industrial emitters will be required to cut their emissions on average by 5 per cent each year to 2030 to help meet Labor’s 43 per cent emissions reduction target.
Under the plan, if an industrial facility overachieves on reducing emissions in a year, it can choose to bank credits to offset emissions in future years, or sell the credit to businesses failing to cut emissions below the prescribed baseline.Hence, the credits are both a reward to businesses delivering on larger emission reductions and a potential lifeline for firms struggling to meet their carbon obligations.
Innes Willox, chief executive of employer association Ai Group, said crediting overperformance under the safeguard was originally proposed by the Morrison government.“For businesses to have the confidence to make the transformative long-term investments in low- and zero-carbon production that all sides of politics want, they need some confidence that the applicable rules will endure over many election cycles.
“These credits will be integral to establishing a market-based mechanism, the most efficient way of reducing emissions and meeting targets,” he said. “If Labor wishes to engage with the Coalition on the legislation, they can start by explaining why they think a carbon tax is good for Australian businesses and households,” Mr O’Brien said.Landowners can earn ACCU for planting trees and storing carbon in soil, and can sell the credits to emitters wishing to offset their emissions.
“We are likely to see companies focus on low-cost process improvements and small equipment upgrades before they invest in capital intensive projects as prices rise, and policy certainty grows over the decade,” he said.
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