NRF & Safeguard Mechanism Working Alongside One Another Will Be Key For Heavy Industry Transition
Emily Wood | March 29, 2023
The National Reconstruction Fund (NRF) and the Safeguard Mechanism legislation that have secured support this week are critical elements that must work together to support the decarbonisation and modernisation of Australia’s manufacturing sector, provided we get the details right, said leading advocate for large commercial and industrial energy users, the Energy Users Association of Australia (EUAA).
“We welcome the support and intent of both pieces of legislation and recognise that important changes have been made to key aspects of the Safeguard Mechanism, demonstrating that the government has listened to feedback from manufacturers,” said EUAA Chief Executive Officer (CEO), Andrew Richards.
“The NRF and Safeguard Mechanism need to work alongside one another as a crucial step in supporting manufacturing that is able to transition to a lower emissions future. The critical work on the details must now begin.”
While many EUAA member companies have invested heavily in fuel switching, new equipment and renewable energy, there are still many businesses for which there are few commercially viable alternatives available today.
“As Australia pursues Net Zero targets and a circular economy, it will be critical to support our key manufacturers to take advantage of new technologies as they become available,” added Mr Richards.
“It is clear that the transition to net zero is more complex than had been previously anticipated and we thank the Government for working constructively to understand the challenges facing heavy industry and find solutions that ensure we do not lose our competitiveness nor our core industries through the transition.”
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
