Direct Action Safeguards: Tapas, Not The Main Course?
In August 2015, the Australian Government proposed a CO2 emissions target of a 26%-28% reduction on 2005 emissions levels by 2030. More recently, the Government released draft details around the Direct Action Safeguards Mechanism. Because many expect that Direct Action is the main course to meeting Australia’s appetite for abatement, some were disappointed when the Safeguards Mechanism was served up and fear we will struggle to meet our emissions targets by 2030.
However, it seems that the Government only intends the Safeguards (and Direct Action) to be a tapas dish with several more policy dishes still to be served, each contributing to meeting our 2030 abatement challenge. And after all these domestic abatement policy dishes are served, even if it still looks like Australia may go hungry (not meet our future emissions targets) the potential to recognise international abatement credits could potentially loom as the kebab at the end of the night.