Australia’s rules governing emissions from coal and gas projects are coming under renewed scrutiny amid claims that companies can expand existing operations without meeting the tougher standards imposed on entirely new developments.
The issue centres on the Federal Government’s Safeguard Mechanism, which requires around 200 of Australia’s largest industrial facilities to reduce or offset their emissions over time.
New coal and gas facilities are generally required to meet stricter best-practice emissions benchmarks.
However, expansions and extensions of existing operations continue to be treated as existing facilities, even when developments involve major new investment and significantly higher production.
Emissions rules under review
Analysis commissioned by the Climate Council estimates that 22 planned coal and gas expansions over the coming decade could produce substantially more emissions under current rules than if they were classified as new developments.
The organisation estimates the difference could add around 4.5 million tonnes of carbon dioxide annually by 2035.
The Federal Government is currently reviewing the Safeguard Mechanism, including the emissions reductions required after 2030 and whether the system is doing enough to encourage companies to reduce pollution directly at their facilities.
The mining industry has resisted calls for expansions to face the same standards as new projects.
The Minerals Council of Australia argues existing operations use established infrastructure and cannot always adopt technologies available to projects designed from scratch.
Importantly, the industry has also urged governments not to abandon the Safeguard Mechanism entirely, preferring regulatory stability after more than a decade of changes to Australian climate policy.
The debate is likely to intensify as Australia tries to reconcile its position as a major coal and gas exporter with increasingly ambitious emissions targets.
