Senate debates

Wednesday, 29 March 2023

Bills

Safeguard Mechanism (Crediting) Amendment Bill 2023; In Committee

6:11 pm

Photo of Jenny McAllisterJenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Hansard source

You asked me about the fertiliser question and what impact it might have on fertiliser. I guess the answer is—and that's why I am reluctant on to comment on individual facilities—that the impact of these reforms will vary between facilities within these sectors. Some facilities that have a lower emissions-intensive production might receive safeguard mechanism credits. They would be able to sell those to other safeguard facilities. As we have already canvassed at length, trade tailored assessment is available for trade exposed facilities.

For the agricultural sector it is perhaps worth noting that the safeguard reforms will result in increased demand for ACCUs, incentivising abatement in the land sector and allowing landowners and farmers to generate another source of income.

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