Will Australia implement a carbon border adjustment mechanism?

The Australian Government is conducting a review to assess the risks of carbon leakage and the effectiveness of different policies. Carbon leakage occurs when production shifts from countries with more ambitious emissions reduction policies to those with lower or no such policies. The review follows the government’s announcement of a public consultation paper on 13 November 2023, which seeks to address carbon leakage risks in Australia. Many countries, including Australia, have pledged to achieve net-zero emissions.

Source KPMG

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