Australia’s oil and gas industry welcomed an opportunity to consult on proposed rules and regulations for the Emissions Reduction Fund safeguard mechanism as announced by the Australian government.
APPEA Chief Executive Malcolm Roberts said the design and operation of a safeguard mechanism is of critical importance to the LNG industry.
“The rules and regulations to implement the safeguard mechanism must not add to the industry’s cost burden. The mechanism must not impose costs on Australian producers that inhibit industry growth or are not faced by our competitors.,” he said.
Roberts said Australia is presently a high-cost nation competing against a growing number of lower-cost challengers.
If Australia wants to convert its abundant gas reserves into jobs, royalties and exports, it must reduce project costs, not add to them, he said, adding that this is the biggest challenge the industry faces.
According to the government, the mechanism should only apply to emissions above ‘business as usual’ and should not be used to raise additional revenue.