Today, the Albanese Government has passed landmark reforms to the Safeguard Mechanism through the Parliament.
These crucial reforms will reduce 205 million tonnes of greenhouse gas emissions to 2030 - equivalent of taking two-thirds of the nation's cars off the road.
Passage of this legislation ensures the country's largest emitters remain internationally competitive in a decarbonising global economy while contributing towards Australia's emissions reduction task.
Consultation and collaboration with industry and constructive members of Parliament have strengthened the design, ensuring flexibility and support for industry to remain competitive while delivering accountability, transparency and integrity.
The former Coalition Government introduced the Safeguard Mechanism in 2016. It applies to facilities that produce over 100,000 tonnes of greenhouse gases annually (around 215 facilities) to keep their net emissions below a baseline (or ceiling).
Minister for Climate Change and Energy, Chris Bowen, said parliamentary passage of the Safeguard Mechanism Bill was a landmark achievement for Australia's economy and the climate.
"Today is an historic day for the country to ensure our economy can take advantage of the opportunities of decarbonisation and meet our ambitious climate targets," Minister Bowen said.
"These reforms will safeguard our economy, safeguard our climate and safeguard our future.
"Passage of this legislation is the culmination of extensive feedback from Safeguard businesses, industry associations, climate and community groups, academics and private individuals.
"These reforms have been supported across the spectrum - from the Business Council to the Climate Council, Manufacturing Australia to the Australian Conservation Foundation.
"We thank those across the Parliament who engaged in good faith discussions to ensure accountability, transparency and integrity for the scheme, and ensure flexibility and support for industry."
The updated Safeguard Mechanism scheme will be in operation as of 1 July 2023.
