Australia: Review of potential carbon border adjustment mechanism

A review of whether a carbon border adjustment mechanism or other carbon leakage policy options, are suitable for Australia

Review of potential carbon border adjustment mechanism

Article Posted date 16 August 2023

The Australian government will be conducting a review of whether a carbon border adjustment mechanism (CBAM), or other carbon leakage policy options, are suitable for Australia.

The review will look at:

  • An assessment of the carbon leakage risks
  • Development of policy options to address carbon leakage
  • An assessment of the feasibility of an Australian CBAM, particularly in relation to steel and cement

It is proposed that the final review report will be finalised in the third quarter of 2024.

Key issues for consideration would be:

  • The measurement of emissions embedded in traded goods, carbon costs in countries of origin
  • How to adapt to policy changes over time
  • The nature of obligations on importers and exporters

 

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