Options to enhance Safeguard Mechanism effectiveness

August 2026

To Australia’s Climate Change Authority

On behalf of the Centre for Climate and Energy Policy at the ANU Crawford School of Public Policy, we appreciate the opportunity to make a submission to the CCA’s 2026 Annual Progress Advice.

Our submission covers options to make the Safeguard Mechanism more effective, in particular through greater incentives for onsite abatement, as well as points around methodology for assessing the mechanism’s effectiveness and some evidence about onsite abatement.

We provide findings and recommendations on

• Options to incentivise investment in on-site abatement

• Options to modify baseline decline rates

• Methods and preliminary assessment for onsite abatement

The findings and recommendations indicated in this submission are based in analysis that will be published separately, with papers in preparation on

• Analysis of options to incentivize onsite abatement

• Analysis of onsite abatement observable to date

• Synthesis of public submissions under previous consultations on the SGM.

Sincerely,

Professor Frank Jotzo