As a leading professional services firm, KPMG Australia (KPMG) is committed to meeting the requirements of all our stakeholders – not only the organisations we audit and advise, but also employees, governments, regulators and the wider community.
KPMG is pleased to provide a response to the Carbon Leakage Review’s (the Review) Consultation Paper on the proposed approach to assess and address carbon leakage risk.
KPMG brings both an Australian and a global perspective to this Review. Through our Global Decarbonisation Hub and broader expert network, we bring together a global climate policy advisory capability. Assisting clients to respond to the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM), both within the EU and trading into that market, has been a particular focus of this work.1
In Australia, we have extensive involvement with the existing range of policies to address leakage. Our response focuses on some of the issues we have encountered from a client perspective, as they address the practical challenges of potential carbon leakage and policies designed to address this.
KPMG broadly supports the approach to carbon leakage outlined in the Review. In summary, we consider a multifaceted policy response is warranted, including consideration of a carefully implemented CBAM for impacted import-competing industries, and a combination of other policy measures for industries that face carbon leakage risks.
KPMG welcomes the Review and the open approach taken in the Consultation Paper. We consider the issue of carbon leakage to be critical for achieving a sustained net-zero transformation. We look forward to continuing to engage with the Review, and assisting our clients in understanding and responding to the issues it raises for them.
Should you wish to discuss this response further, please do not hesitate to reach out.
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1. See the KPMG Global pages on the EU Carbon Border Adjustment Mechanism (CBAM) and Decarbonization, Climate and Nature for more information. KPMG’s comments on the European Commission’s Public Consultation on the Carbon Border Adjustment can also be viewed here.