Baselines and Bottom Lines: Preparing for the Safeguard Mechanism Review
What’s happening
The Safeguard Mechanism is Australia’s main industrial emissions policy. It sets declining emissions limits (baselines) on Australia’s largest industrial polluters, covering more than 200 facilities and around 30% of national emissions. Many of these facilities sit inside investor portfolios. Reform to the mechanism directly affects their emissions performance, competitiveness and transition risk, with flow-on implications for the portfolios that hold them.
First introduced in 2016, the Safeguard Mechanism was reformed in 2023 to align with Australia’s 2030 Nationally Determined Contribution (NDC). The Government will shortly commence a review to run over 2026–27 to ensure it remains fit for purpose. EY, commissioned by IGCC, has modelled reform options to inform that process. Our August Member Meeting will present the research and set out options that could put the Australian economy on track for the upper end of the Government’s 62 to 70% by 2035 target range.
Why it matters
Institutional investors are custodians of capital across the Australian economy, giving them a stake in how industrial sectors decarbonise. This spans direct emissions, supply and value chain risks, and progress against Australia’s net zero targets. Understanding what the modelling reveals equips investors to engage with the Review, and to advocate for policy that keeps their holdings on track and their long-term returns intact.
In this session, we’ll cover
- What the EY modelling reveals about reform options for the mechanism
- How those options measure up against Australia’s 2035 target
- IGCC’s proposed advocacy and work with members to ensure a strong investor response to the Review
This is a member-only event. Register to attend below: