Submission on the Australian Government’s Safeguard Mechanism Reforms

Climate change presents serious risks to the financial system and to the ability of financial institutions to meet their obligations to members, investors, clients, consumers, customers and shareholders. Strong, orderly action to reduce emissions – consistent with a 1.5 degree pathway – is critical to reduce these risks, support Australia’s economic competitiveness, and ensure Australian financial institutions (FIs), firms and communities maintain access to the cost-effective capital that is essential for the transition.

ASFI welcomes the Government’s commitment to reform the Safeguard Mechanism to require Australia’s largest emitters decarbonise in line with Australia’s climate targets. A credible and robust Safeguard Mechanism will help Australian industry to attract the investment and finance it needs to capitalise on the opportunities of the net zero transition and thrive in a low carbon future.

You can read our full submission here.