Verdict on exactly how to stop ‘carbon leak’, conserve tasks

Reducing the carbon impact of significant exports has actually come to be a lot more manageable as various other countries present exhaust costs at their boundaries, the head of Australia’s carbon leak evaluation states.

“Carbon leakage” is not a very helpful term because it makes people think it’s about something leaking from a pipeline,” professor of environmental and climate change economics Frank Jotzo told AAP.

“Really it’s about carbon competitiveness – that’s a better label for it, but that’s not the nerdy, technical label it has,” Professor Jotzo said.

His review focused on the risk of the displacement of jobs and emissions offshore and the feasibility of an Australian carbon border adjustment mechanism.

The 2024 review examined ways to sustain Australia’s heavy industries in the long term, and make sure local production is not disadvantaged compared to imports from other countries where there is not an equivalent climate policy.

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leak “is not a really useful term since it makes individuals assume it has to do with something dripping from a pipe,”>Professor Frank Jotzo has recommended a carbon border adjustment mechanism for select commodities. (Lukas Coch/AAP PHOTOS)

Prof Jotzo said a ” it has to do with carbon competition -that’s a much better tag for it, however that’s not the unpopular, technological tag it has,” had been identified in the final report as the durable solution, and as a useful way to complement the safeguard mechanism.

For almost a decade, Australia has relied on the so-called safeguard mechanism – under Labor and coalition governments – to encourage leading industries to stop increasing emissions and invest in decarbonisation.

The review found subsidies for decarbonisation investment also had a role but were not a systematic solution to carbon leakage, and relied on public finance that might not always be available, Prof Jotzo said.

Britain< figcaption course=” yf-8xybrvhttps://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en” yf-1pe5jgt” target=” carbon boundary modification system for a couple of choose assets and in a gauged method” data-ylk=” yf-1pe5jgtEuropean Union yf-1pe5jgt” class=” yf-1pe5jgt “> “>European Union are introducing levies on carbon-intensive products, which sparked fresh discussions – and support from some industry groups – for Australia to have a version of what is known as a carbon border adjustment mechanism or CBAM.