The safeguard mechanism misses the mark

The safeguard mechanism that Labor are proposing is far from perfect, but it is much better than what the LNP gave us when they first introduced it.

The LNP did not properly enforce their mechanism, and it failed to reduce emissions. Now that Labor want to make it better and enforce it, the LNP are chucking a hissy fit.

This is a strange response from the LNP, as they were the ones that originally came up with the idea. Labor’s plan is basically to enforce what the LNP designed, but for reasons not yet explained, the LNP now think it is a bad idea.

Enter the Greens. They say they will support it on one condition – that Labor undertakes to block any new coal and gas development. This is a pretty big condition, with about 100 new coal and gas projects planned or in development before 2030.

Still, the science is on the Greens side, with the UN, the International Energy Agency and major climate science organisations stating that all such projects need to cease immediately if the world is to properly address climate change.

Blocking 100 new projects will clearly have a significant impact on the economy, but what what price can you put on the hardships that will ensue if we do not address climate change?

If we do not block coal and gas projects, the safeguard mechanism will not achieve it’s goals.

The safeguard mechanism aims to reduce emissions intensity – how much emissions are released relative to production – by 4.9% per year. They can choose how much happens onsite and how much happens by buying offsets.

The idea behind offsets – known as Australian carbon credit units, or ACCUs – is that they allow companies to pay for cheaper emission reductions elsewhere.

If one company achieves more than 4.9% reductions, they can “sell” their surplus cuts to another company that hasn’t achieved the 4.9% reduction.

But the government’s proposal to allow fossil fuel developers to buy an unlimited number of offsets while continuing to emit is where the safeguard potentially fails.

Labor’s plan will only work if no new coal or gas projects are approved. New projects would mean more emissions, which would mean that the reductions achieved by existing projects would be negated, or perhaps overall emissions would rise.

This is clearly not what the plan claims it will do.

Labor has not released analysis to show how much of the cuts they expect to be direct, or explained why it it is against placing some sort of limit on how many offsets can be used to ensure cuts are made onsite.

Unless limits are put on the offsets, the safeguard mechanism will probably not work. This is even more likely if new projects are given the go ahead.

The Greens are not the only ones with concerns, nor are they the only ones that Labor needs to get onside to get the safeguard mechanism approved in the senate. Labor also need at least two of the crossbenchers to approve it.

Unless they address this one issue, their entire climate change bill may fail in the senate, and that will have a devastating effect on Australia’s plans to achieve net zero emissions by 2050.

This is a difficult issue, and there is clearly still a long way to go.

Craig Hill is a Brisbane-based Social Justice Campaigner, Writer, Teacher and Business Consultant. He has campaigned for social justice in Australia, promoted human rights in China and worked with the homeless in Honolulu. He holds a Graduate Certificate in Education and a degree in Management.