Have your say: Government seeks hydrogen industry feedback on Carbon Leakage Review
Submissions will help shape Australia's final report on addressing carbon leakage challenges, due by the end of 2024.
The Australian Government has appointed Professor Frank Jotzo to lead the Carbon Leakage Review to consider additional policy options to address carbon leakage.
The Review includes:
- an assessment of the carbon leakage risks
- development of policy options to address carbon leakage
- an assessment of the feasibility of an Australian Carbon Border Adjustment Mechanism, particularly in relation to steel and cement.
As part of the process, The Department of Climate Change, Energy, the Environment and Water is inviting feedback on its second consultation paper for the Carbon Leakage Review. Feedback from this consultation will contribute to a final report, which the department will submit to the Australian Government by the end of the year.
This second consultation paper builds on input gathered during the initial consultation process last year. Stakeholders then recommended including hydrogen, ammonia, and urea—or a suitable combination of these—in the carbon leakage risk list and called for progress on developing a BCA mechanism.
As carbon leakage occurs when industries relocate production to countries with weaker emissions policies, undermining global efforts to reduce emissions, the review considers the introduction of a Border Carbon Adjustment (BCA) as a possible measure to mitigate these risks. A BCA would place a levy on imports from countries with less stringent climate policies, creating a level playing field for domestic producers.
Two public webinars were held to provide information and discuss key aspects of the review. Recordings, slides, and transcripts from the webinars are available on the department's website to assist stakeholders in preparing submissions.
This is a chance for hydrogen sector professionals to provide input on policy measures that could affect the industry's competitiveness and long-term viability in Australia.
To participate:
- Read the consultation paper, which outlines preliminary findings on carbon leakage risks and policy options.
- Submit feedback through the department's online portal before 11:59 PM AEDT on 3 December 2024.
