Safeguard Mechanism crediting legislation before the parliament must be passed to provide energy certainty to Australian businesses.

“For the sake of certainty and the achievement of our emissions reduction goals, the Safeguard Mechanism must pass parliament,” ACCI chief executive Andrew McKellar said.

“Industry is keen to play its part when it comes to emissions reduction, but this progress is contingent on clear regulatory frameworks with support from across the political divide.

“The business community has been very clear in its support for reforms to the Safeguard Mechanism.  This is the best way to secure the planning, investment and innovation that will underpin the decarbonisation of our economy without sacrificing reliability or affordability.

“Past failure to deal with this reality has crimped certainty for industry and investors, and left our energy sector in disarray. Australian businesses and households are now paying the price.

“The government’s crediting and trading scheme will provide the flexibility for facilities covered under the mechanism to invest in low emissions technologies at the optimum time, thus contributing their fair share in the transition towards a more sustainable future.

“Safeguard Mechanism credits will encourage businesses to exceed carbon-reduction targets, and allow others to buy credits in industries that have limited options for lower-emissions technology.

“We must ensure flexibility in the system and the correct incentives to ensure facilities invest in low-emissions technologies to meet emissions reduction goals, rather than be forced to reduce their production.

“While questions remain regarding the treatment of emissions-intensive trade exposed industries under the government’s current framework, these concerns should be resolved through parliamentary committees and the current consultation process.

“We strongly urge a bipartisan approach to energy policy to ensure Australia’s transition to a net-zero future can be achieved.