deepC Store participates in Australian Government's consultation for carbon leakage risk
deepC Store Pty Ltd (“dCS”) has participated in the Australian Commonwealth Government's (Department of Climate Change, Energy, the Environment and Water) public consultation process for addressing Australia's carbon leakage risk.
Carbon leakage refers to shifts in production from countries with more ambitious emissions reduction policies (such as Australia) to those with lower (or no) emissions reduction policies solely because of different policy settings. It is Australia's key policy priority to address carbon leakage risk ASAP so that (1) Australia's hard-to-abate sector can compete fairly with those located outside of Australia, and (2) Australia's intentions and actions to reduce emissions directly translate to global emission reduction. Addressing this risk will also assist in establishing a carbon price for the Asia Pacific region, which will subsequently encourage other countries in the region to reduce their emissions.
Key points that dCS made in its submission are as follows:
dCS supports Australia’s introduction of a Carbon Border Adjustment Mechanism (CBAM) as a key policy mechanism for leveling the playing field between domestic and foreign production and addressing carbon leakage risks.
Having the Safeguard Mechanism reform in place while not having the CBAM and/or other key carbon leakage policy in place will likely eventuate in reduced manufacturing of goods and commodities in Australia due to added cost, and increased import of the same material that is high emissions.
dCS strongly supports Australia’s consideration for targeted public investments to decarbonise Australian industries. This will help level the playing field between domestic and foreign production of goods and commodities and reduce the risk of carbon leakage.
dCS supports Australia in its pursuit of all avenues of multilateral and plurilateral initiatives to level the playing field between domestic and foreign production and to address carbon leakage risks. Upon conducting the assessment of impacts on bilateral trading partners and net global emissions, dCS suggests for joint studies to be conducted between the Australian Government and the governments of key trading partners (e.g. Japan, Korea, Singapore, India, USA, EU, China) for sharing information, improving mutual understanding, and enhancing cooperation.
For detail on dCS’s submission, please see link.
For detail on submissions made by others, please see link.
For further details please contact
deepC Store Pty Ltd - Daein Cha getintouch@deepcstore.com
