The Albanese Government will consider capping emissions offsets in its review of the Safeguard Mechanism—Australia’s primary policy to reduce greenhouse gas emissions at large industrial facilities.
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Climate Change and Energy Minister Chris Bowen said, “With Australia now setting its sights on 2035, this review is focused on ensuring the Safeguard Mechanism continues to drive real, durable emissions reductions across Australia’s largest industrial facilities and contributes its fair share to achieving the nation’s emissions targets.”
The government’s consultation paper seeks feedback on the policy settings needed to support the Safeguard Mechanism’s contribution to the 2035 target, including how to maintain a strong focus on domestic emissions reduction as Australia transitions to net zero.
The review will consider post-2030 settings while providing a clear and stable framework for emissions reduction over the long term.
Bowen said the review was not intended to fundamentally redesign the Safeguard Mechanism but examine how the existing framework can continue to deliver effective emissions outcomes beyond 2030, consistent with its contribution to the 2030 target.
“The review will place particular emphasis on domestic abatement, industrial decarbonisation and strengthening Australia’s energy security through greater electrification and the use of Australian renewable energy,” he said.
The Safeguard Mechanism Review is scheduled to be completed in early 2027. Feedback on the consultation paper is invited until Friday, 18 September 2026.
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