ANU professor engaged for ‘carbon leakage’ review

The Albanese Government has engaged Professor Frank Jotzo to provide expert input into the Department of Climate Change, Energy, the Environment and Water’s review of additional policy options to address the risk of “carbon leakage”.

In July 2023, the Australian Government implemented landmark reforms to strengthen the Safeguard Mechanism to reduce emissions and help companies decarbonise their operations.

The reforms and the Powering the Regions Fund include strong support for Australian industries to mitigate the risk of carbon leakage.

The carbon leakage review will assess the need for further policy options and consider the feasibility of a carbon border adjustment mechanism for Australia – particularly for steel and cement.

Two rounds of consultation with Australian industry, environmental groups, research experts, international trade partners and local communities will inform the review, with advice to be presented to the government by 30 September 2024.

Minister for Climate Change and Energy Chris Bowen said the Government was committed to protecting Australia against the risk of carbon leakage.

“We need to ensure our ambitious climate policies have a positive global effect and won’t be diluted by the supply of carbon-intensive products moving to countries with weaker climate policies,” Minister Bowen said.

“The review will look closely at the risk of carbon leakage and develop policy options to address any such risks. We need to consider how new policy options, like the CBAM being implemented in the European Union, could work for Australia’s national circumstances.”

Professor Jotzo is a professor at the Australian National University’s Crawford School of Public Policy and is Head of Energy, ANU Institute for Climate, Energy and Disaster Solutions.

He also advises the International Panel on Climate Change, as well as national and state governments on climate, economics and trade.

Professor Jotzo will work with the Department of Climate Change, Energy, the Environment and Water, with representation from Australian Government agencies.