(8 January 2024 – Australia) Labor’s expanded emission reduction scheme (ERS) safeguard mechanism has pushed Australian carbon credit pricing to a six-month high.
Major polluters are snapping up abatement credits to satisfy new requirements. The safeguard mechanism is a key plank in the government’s strategy to reduce emissions by 43 percent by 2030 and hit net-zero emissions by 2050.
The safeguard mechanism requires Australia’s 215 largest carbon emitters to reduce annual emissions by five percent each year. They are initially attaining this through the application of Australian Carbon Credit Units (ACCU) carbon emission credits. Foreign credits are not allowed and have been widely condemned.
“The mechanism will incentivise investments in technology that curtail carbon dioxide output” stated Federal Energy Minister Chris Bowen.