Background/context:

After winning the election in 2022 on a climate platform, the Albanese Government introduced its 2023 reforms to the Safeguard Mechanism. The reforms aimed to regulate Australia’s 215 biggest polluters, including fossil fuel companies and big miners such as Santos, BHP, Anglo Coal, Woodside, Chevron and Rio Tinto. Effective emissions ceilings were to be set with those ceilings reduced over time forcing companies to invest in technology and solutions that would lead to a cleaner future. It was anticipated that the Safeguard Mechanism would limit future fossil fuel project approvals.

The reformed Safeguard Mechanism was seen as a key climate policy but a review by the Australia Institute has identified major flaws and loopholes limiting its effectiveness. 

Former Treasury secretary Ken Henry and other respected economists say the most economically efficient way to address carbon emissions is to set a carbon price. A carbon price can take several forms, such as an emissions trading scheme or direct carbon tax, and forces industry to emit less by, for example, investing in cleaner technologies or energy efficiency. If a business continues to emit greenhouse gases, it pays a financial penalty. Economists claim a carbon price would achieve genuine and more broadly based emissions reductions. The Gillard Labor government introduced carbon pricing in 2012 but the legislation was repealed by the Abbott Coalition government in 2014. It would require significant encouragement for the current government to move in this direction again.  

Limitations of the Safeguard Mechanism

From the outset, the 2023 version of the Safeguard Mechanism was limited in scope as targeting the 215 biggest emitters accounted for less than less than 30% of Australia’s emissions. Furthermore the scheme placed significant emphasis on carbon credits and offsets which incorporate mechanisms and technologies that are significantly flawed. Reference has been made to Australia's failed carbon market and our emissions policy has been described as “toothless, counterintuitive and confusing … by design”. 

The Australia Institute review of the Safeguard Mechanism concluded that rather than limiting emissions "it just lets companies cheat". It provided the example of Chevron’s Gorgon facility, which is one of the highest emitting gas facilities in the world. In 2023-24 its externally set emissions target was set well above its actual emissions and it was then allowed to on-sell “safeguard mechanism credits” which help another polluter meet its emissions targets. This was despite Gorgon’s actual emissions being the highest they’ve been since 2019-20.

In contrast to the Safeguard Mechanism, a carbon price could put a tax on every tonne of pollution produced and would incentivise businesses  to adopt cleaner technologies and behaviours. A 2024 study examined 21 carbon pricing schemes and found at least 17 yielded immediate and substantial emission reductions. The largest ever study analysed 142 countries over more than two decades and provided clear evidence of the efficacy of carbon pricing. Furthermore, the latest Productivity Commission report and leading economists and policy makers are of a like mind that a carbon price would boost Australia’s productivity and assist in budget repair.

Why is this important?

• The IPCC Climate Report has signalled a “code red for humanity.”  We have very little time to change our current trajectory before the world is locked into catastrophic climate change.
• We are experiencing the effects already with increasingly frequent and severe weather events including floods, droughts and bushfires.
• The UN claims “current national climate plans fall miles short of what’s needed to stop global heating from crippling every economy, and wrecking billions of lives and livelihoods across every country”
• We are the last generation with the power to tackle the climate crisis.
• Australia is a major fossil fuel exporter, an issue requiring urgent attention in its own right. But particularly given our exported contribution to the world’s emissions it is crucial Australia reduces our domestic contribution as rapidly as possible. 
• The current Safeguard Mechanism is proving inadequate and a move to a carbon price is essential to have real impact on our emissions.

Who to contact:

• All Labor MPs, including Senators, as they all vote in Caucus
• Your local Federal MP (check on this website if you’re unsure who that is)
• Key Federal Ministers (addresses in link) including: Climate and Energy Minister Chris Bowen; Treasurer Jim Chalmers; Prime Minister Anthony Albanese; Environment Minister Murray Watt; Resources Minister Madeleine King; Trade and Tourism Minister Don Farrell; Assistant Minister for Climate Change and Energy Josh Wilson; Special Envoy for Climate Change Adaptation and Resilience Kate Thwaites
• Federal Senate Crossbenchers (addresses in link) including the Greens, Independents David Pocock and Tammy Tyrell, and Jacqui Lambie (JLN), who hold the balance of power in the Senate.

Desired outcomes:

• For the Labor Government to bring in a carbon tax so all emissions become accountable.
• To significantly overhaul and strengthen the Safeguard Mechanism

Resources:

• Email example below and General email template here to write your own from scratch
• Guidelines and tips for writing emails

Action you can take:

1. Email your MP and/or relevant Ministers:

If you need some help getting started with your email, here is an example. 

Please don’t copy it exactly - personalise it and tailor it to the MP you are writing to. 

In addition, when writing to a Minister or Shadow Minister, start by saying that you’re writing to them in their role as Minister for xxxx, otherwise they will probably just forward your email to your local MP.

[MP name]

[Member for …. or  Minister for ….]

Dear …

[personal statement - who you are and why you care]

While the 2023 reform to the Safeguard Mechanism appeared promising, significant problems have become apparent. These include ineffective emissions reductions ceilings, and over reliance on carbon credits and offsets. The scheme also focuses on less than 30% of Australia’s total domestic emissions.

Research indicates that placing a price on carbon is a highly effective mechanism for achieving immediate and substantial emission reductions. Furthermore, the latest Productivity Commission report and other expert opinion suggests a carbon price would boost Australia’s productivity and assist in budget repair. 

The most recent IPCC report made it clear - we have very little time left to tackle climate change. The world must quickly transition from fossil fuels. It is crucial Australia takes more meaningful and immediate action to reduce emissions and a carbon price would be far more effective than the current safeguard mechanism.

The results of the federal election were clear – Australians want strong action on climate change.  Our new government was elected to do much better.  So, I am contacting you to ask:

Will you pledge to achieve real and immediate emissions reductions by introducing a carbon price in this electoral cycle?

If it is considered necessary to persist with the Safeguard Mechanism will you commit to real and significant overhaul so that effective caps are introduced and enforced?

I look forward to your response.

Sincerely,

Name

Address

Phone

(Note: your contact details are required if you want a reply)

2. Call your MP or Minister's office

This is a way to respond instantly to an issue and only takes a couple of minutes. 

Here is a suggested script to get you started:

3. Visit your MP

Nothing beats a face-to-face conversation. Email your MP’s electorate office to ask for a meeting and follow up with a phone call a few days later. Get help on how to do this under the Democracy and Governance heading on our Issue briefings webpage.

The greenhouse effect is a natural and essential process that warms the Earth’s surface. It occurs when greenhouse gases like carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and water vapour trap some of the heat that the Earth radiates after absorbing energy from the Sun. This trapped heat keeps the planet’s temperature within a range that supports life. warm enough to support life. However, human activities like burning fossil fuels, deforestation, and industrial processes have added more of these gases into the atmosphere, intensifying the greenhouse effect and leading to accelerated global warming and climate change.