Australia: Public consultation paper on carbon leakage risks
The consultation is open until 12 December 2023.
The consultation is open until 12 December 2023.
The Australian government announced on 13 November 2023 a public consultation paper seeking to review carbon leakage risks in Australia and various policy mechanisms to address carbon leakage. The consultation is open until 12 December 2023.
Policy options include the consideration of an Australian carbon border adjustment mechanism (CBAM), emissions product standards, targeted public investment in firms' decarbonisation, and multilateral initiatives.
A CBAM has begun to be implemented in the EU and involves imposing a carbon price at the border on products, aimed at providing a level playing field with domestic facilities facing carbon costs. The government previously announced that it will be reviewing the feasibility of a CBAM. Read TaxNewsFlash
The review involves extensive consultation with two rounds of feedback (with the second review to be held mid 2024). The final report to the government is expected by 30 September 2024.
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