Ai Group welcomed the chance to make a submission on the Securing Safeguard Mechanism Reforms Consultation Paper.

Our members include many businesses covered by the current Safeguard Mechanism; those who would be covered if thresholds dropped in future; and many who would never be covered, but have an interest in environmentally effective and economically responsible transition to net zero emissions in the industry supply chains in which they participate.

Our attached submission addresses many critical issues raised by the Paper. A satisfactory approach to trade competitiveness risks is central to the success of an evolved Safeguard Mechanism. Ai Group considers that while the approaches to Emissions Intensive Trade Exposed industries considered in the Paper may suffice in the early years, a better solution will be needed before long. An Australian Carbon Border Adjustment Mechanism could be that answer, and our submission describes how such a reform could be considered and implemented, practically and in full compliance with Australia’s trade commitments.