Submission: Future-proofing economic reforms must consider green growth industries
19 August 2025
The smooth transition to a net zero economy addresses all three of the Reform's priority areas. Green industries are future-proofed, and acting on opportunities to accelerate the transition now will secure economic resilience for Australia, sooner.
Productivity gains in the long-term are dependent upon Australia’s ability to decarbonise at the pace and scale required to position itself in global green supply chains. Australia’s implicit price on carbon provides a signal to decarbonise, but it is not yet strong enough.
IGCC members support government in developing a Border Carbon Adjustment to; reduce the green premium between domestically produced goods and imports, phase out TEBA, and create a revenue stream to support on-site abatement and/or assist end consumers absorb (expectedly low) additional costs from the scheme.
IGCC members recommend a strong 2035 NDC so that the baseline decline rate of the Safeguard Mechanism will rachet higher, creating a stronger decarbonisation signal. An absolute cap on emissions for 2035 will also need to be decided, and IGCC notes that meeting the 2030 cap should not be reliant on offsets.
Recommendations:
- Set a 2035 NDC at the highest possible level of ambition, according to the range provided by the Climate Change Authority.
- Develop a Border Carbon Adjustment to compliment the Safeguard Mechanism’s effective carbon price.
- Consider expanding the scope of the Safeguard Mechanism’s coverage from 100,000 tonnes to 25,000 tonnes, and include electricity generators.
- Require detailed information from Safeguard facilities as to why they need to offset more than 30% of their obligation with Australian Carbon Credit Units (ACCUs).
- Consider alternatives to surrendering ACCUs to meet Safeguard obligations.
Read the full submission.