Carbon border adjustments being considered in Australia

Australia’s Climate Change Minister announced plans this week to look at a potential carbon border adjustment mechanism (CBAM). Chris Bowen told an Australian Business Economists forum in Sydney that policies were needed to ensure a level playing field for Australian firms.

Mentioning the European Union’s (EU) CBAM by name, he said that his department would prepare a review to assess carbon leakage risks, develop policy options and look at the feasibility of an Australian CBAM, particularly in relation to steel and cement.

The Antipodean nation has past form when it comes to carbon legislation. Back in 2012 it introduced the Clean Energy Act under the Gillard administration.