Emissions increases approved by regulator may wipe out $260m of Direct Action cuts

Nearly 60 Australian industrial sites have been given the green light to increase greenhouse gas pollution, potentially cancelling out hundreds of millions of dollars of public spending on emissions cuts under the Coalition’s Direct Action climate policy.

Citic Pacific’s Sino Iron project in the Pilbara is
among the industrial sites that have been allowed
to increase emissions under the safeguard mechanism.

The increases have been quietly approved under the “safeguard mechanism”, which was introduced as part of Direct Action to ensure cuts paid for using the main part of the policy – the emission reduction fund – were not undone by emissions increasing in other parts of the economy.

Under the safeguard mechanism, government agency the Clean Energy Regulator sets an emissions limit for each large industrial site based on its highest level of emissions over the previous five years. But companies can apply to have the limit recalculated.

Read Adam Morton’s story on The Guardian - “Emissions increases approved by regulator may wipe out $260m of Direct Action cuts.”