- 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
