Australia announces progress on a Carbon Border Adjustment Mechanism

• Australia is conducting a review of whether a Carbon Border Adjustment Mechanism (CBAM) or other carbon leakage policy options are appropriate for the country.
• The review will assess the risks of carbon leakage, develop policy options to address it, and evaluate the feasibility of an Australian CBAM, particularly for steel and cement.
• The final report is expected to be completed in the third quarter of 2024.
• The examination is taking place in the context of the enhanced Safeguard Mechanism, which has put emissions reduction obligations on industrial emitters and introduced a form of emissions trading.

Source KPMG

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