Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Manufacturing Australia (MA) has a low level of engagement with climate policy. The association takes a mixed position on the energy transition, advocating a continued role for fossil gas in the energy mix, while also supporting the transition to low emissions manufacturing. In addition, MA appears to have engaged with unsupportive positions on Australia’s Safeguard Mechanism reforms.
Top-line Messaging on Climate Policy: MA has displayed very limited top-line messaging on climate policy in recent years. The association supported Australia’s commitment to net zero emissions by 2050 in a September 2022 consultation submission, however, MA does not appear to have communicated a position on the Paris Agreement since July 2018.
Engagement with Climate-Related Regulations: MA’s recent engagement with climate-related regulations appears to be largely confined to Australia’s Safeguard Mechanism reforms and the introduction of a Carbon Border Adjustment Mechanism (CBAM). The association advocated for several provisions that risk undermining the climate ambition of reforms to the Safeguard Mechanism in September 2022 and February 2023 consultation submissions, including suggesting that the proposed baseline decline rates were too ambitious.
MA appears to adopt a more supportive position on the introduction of a CBAM in Australia, stating that “a well-designed CBAM would help to level the playing field and mitigate the risk of carbon leakage” in a February consultation submission. MA’s CEO Ben Eade also expressed his support for a CBAM in an April 2023 news article in The Australian.
Positioning on Energy Transition: MA adopts a mix of negative and positive positions on the transition of the energy mix, advocating a continued role for fossil gas while at the same time supporting the transition to low emissions manufacturing. In a November 2023 consultation submission to Australia’s Future Gas Strategy, the association supported a long-term role for fossil gas in the manufacturing industry and appeared to support continued investments in fossil gas supply in Australia. Similarly, in a February 2023 consultation submission, MA appeared to promote a continued role of fossil gas in the energy mix, without placing clear conditions on the need for CCS or methane emission abatement on the use of gas.
However, the association has also repeatedly expressed its support for measures towards the transition to low emissions manufacturing. In a February 2023 consultation submission, for example, it spoke out in favor of electrification, green hydrogen for use in process heating and carbon capture, usage and storage.