Safeguard Mechanism (Crediting) Amendment Bill 2023

The majority voted in favour of government amendments introduced by NSW Senator Jenny McAllister (Labor), which means they will now be included as part of the bill.

What do the amendments do?

An explanatory memorandum was provided by the government, which explains the amendments in detail. Senator McAllister also gave a summary of them in her speech:

Today the government is moving amendments to amend the objects of the National Greenhouse and Energy Reporting Act to specify that net carbon emissions from safeguard facilities decline consistent with Australia's greenhouse gas emissions reduction targets and that covered emissions decline over time; that each facility has a material incentive to reduce emissions; and that the competitiveness of trade exposed industries is appropriately supported as Australia and its regions seize the opportunities to move to a global net zero economy.

These amendments also require public advice from the Climate Change Authority on how emissions are tracking against the carbon budget. Importantly, they add a requirement to make changes to subordinate legislation if the budget is not on track or to take other steps to address that problem. To inform this advice, the environment minister would be required to provide information about emissions from proposed actions that are likely to result in a new facility being covered by the safeguard mechanism or a safeguard facility increasing its emissions after approving the action under the Environment Protection and Biodiversity Conservation Act. This advice would be provided to the Climate Change Authority and to the minister responsible for the Climate Change Act. In the coming weeks, the minister will be releasing associated rules which are required to enable these changes.