Insight
Does Australia’s safeguard mechanism matter for Metals and Mining?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Australian government has set greenhouse gas emission limits on its largest industrial facilities under the Australian Safeguard Mechanism (ASM). The impact on Metals & Mining (M&M) assets will vary widely due to the unique emission limitations applied to each commodity and the coal sector will bear the brunt. With such varied impacts across Australia’s M&M facilities, the path forward for each sector or asset will be unique.
Table of contents
- Executive Summary
- Background and Emission Limits
-
Impact
- Analysis assumptions
- Mining assets (non-coal)
- Copper mines
- Lead and zinc mines
- Bauxite mines
- Iron ore mines
- Lithium mines
- Gold mines
- 6 more item(s)...
-
Implications and considerations
- Compliance options under the ASM
- 1) Business-as-usual (buying credits)
- 2) Invest in decarbonisation
- 3) Apply for a relaxed emissions baseline
- 4) Borrow credits from future years
- 5) Apply for a Multi-Year-Monitoring-Period
- Implications
Tables and charts
This report includes the following images and tables:
- Australian M&M assets by sector and ASM inclusion (%)
- Average upper limit of carbon costs incurred under the ASM (% of cash costs)
- Safeguard hybrid baselines: default and facility-specific emissions intensity baseline ratio
- Lead and zinc mines - average cost of emissions - @ US$50/tCO2e
- Bauxite mines - average cost of emissions - @ A$50/tCO2e
- Iron ore mines - average cost of emissions - @ A$75/tCO2e
- Lithium mines - average cost of emissions - @ A$75/tCO2e
- Gold mines - average cost of emissions - @ A$75/tCO2e
- Alumina refineries - average cost of emissions - @ A$75/tCO2e
- Aluminium smelters - average cost of emissions - @ A$75/tCO2e
- Steel plants - average cost of emissions - @ A$75/tCO2e
- Safeguard hybrid baselines: default and facility-specific emissions intensity baseline ratio
- 1 more item(s)...
What's included
This report contains:
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