Safeguard Mechanism costs

Question

My questions concern the operation of the Safeguard Mechanism in FY 2025. 1. In FY 2025, how many facilities covered by the Safeguard Mechanism were unable to reduce their emissions to the baselines set by the Albanese Government and thus liable to pay a carbon penalty through the purchase of ACCUs, SMCs, or through flexibility mechanisms? 2. Is it true that in FY 2025, 70 per cent of all facilities covered by the Safeguard Mechanism incurred a carbon penalty due to their emissions being higher than their baselines? 3. Is it true that these firms' emissions were more than 13.7 million tonnes of CO2-e higher than the artificial baselines set by the Albanese Government? 4. What was the cost of Labor's Safeguard Mechanism to Australian businesses in FY 2025? Isn't it true that, with an average ACCU price of $37 per tonne, the carbon burden borne by 143 facilities exceeded more than half a billion dollars?

Answer

Please see the attached answer.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000616.pdf (opens in a new tab)