24 March 2023

Safeguard Mechanism reform: consultation on proposed design

Australia has a significant opportunity to create and retain high-quality jobs, grow its manufacturing sector and “re-shore” capabilities lost to imports, through a carefully managed transition to low emissions manufacturing.

  • Key long term emissions reduction pathways for Australian manufacturing industries include direct electrification using clean energy; green hydrogen for use as a process feedstock; green hydrogen for use in process heating; and carbon capture, usage and storage.
  • Each of these pathways are the subject of considerable R&D investment by MA member companies.
  • In the medium term, reductions in emissions will also be achieved through substitution of emissions-intensive inputs, increased recycling and re-use of materials, process changes and efficiency improvements to existing assets.

A successful transition that delivers globally competitive Australian energy inputs not only secures today’s c.1.3 million direct and indirect manufacturing jobs but could also create c.100,000 new, high-quality manufacturing 

Manufacturing Australia (MA) supports a well-designed and effective Safeguard Mechanism as a key element of the Federal Government’s policy measures to encourage emissions reduction in Australian industry.

As currently drafted, however, the proposed design of the Safeguard Mechanism Reforms is likely to reduce the international competitiveness of some of Australia’s largest and most strategically significant manufacturing capabilities, putting at risk existing facilities and future investment. 

Read the full submission here