Next Steps To Develop A Carbon Border Adjustment Mechanism Welcomed By Energy Users

Next Steps To Develop A Carbon Border Adjustment Mechanism Welcomed By Energy Users

Emily Wood | August 15, 2023

Today’s announcement by Federal Climate Change and Energy Minister Chris Bowen that the government is moving forward with the development of a Carbon Border Adjustment Mechanism (CBAM)  “will be a welcome addition to the industry decarbonisation kit bag” said leading advocate for commercial and industrial energy users, the Energy Users’ Association of Australia (EUAA).

A CBAM, which is also being developed by the European Union, seeks to ensure local industries who are required to reduce emissions are not placed at a disadvantage when competing against industries from jurisdictions that do not require similar actions.  This helps to maintain competitiveness of local industries as they decarbonise while also avoiding “carbon leakage” when production simply moves to jurisdictions that does not have strict emissions laws and regulations.

“The Federal Government are clearly listening and acting to help the industries that we rely on to manage the tricky transition to net zero” said EUAA Chief Executive Officer, Mr Andrew Richards.

The EUAA supports the pursuit of net zero targets and decarbonisation of the electricity system and are working to ensure it is achieved at least cost for Australian energy users.  The EUAA is also working to ensure the preservation and transformation of existing industries while maximising the opportunities of an energy industry undergoing a paradigm shift.

“With a stricter Safeguard Mechanism providing the stick and carrots through funding via the National Reconstruction Fund and now working towards a Carbon Border Adjustment Mechanism, the pieces are being put in place.”

“Clearly more work needs to be done (along with a decent dose of good luck) and we need to remain vigilant to avoid unintended consequences and deal with unforeseen issues, but we seem to be pointing in the right direction.”

The EUAA is the peak body representing Australian industrial and commercial energy users. EUAA membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries.  Combined EUAA members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.

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Media Contact: Emily Wood 0421 042 121

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