The BGA Australia Team led by Managing Director Fergus Hanson, wrote an update to clients on Australia’s advancement of its economic and political agenda which will focus on climate and energy.

Context

  • The government is expected to pass legislation to address climate, defense, jobs and cost-of-living challenges. The government will also reprioritize budget spending to address social welfare and embark on a major review of defense spending.
  • The government’s climate change legislation has passed the House and is expected to clear Parliament in September after the Senate Environment and Communications Legislation Committee releases its report. The government will consult on changes to the safeguard mechanism, which imposes costs on large emitters that exceed emissions thresholds.

Significance

  • The government will extend the Australian Domestic Security Gas Mechanism (ADSGM), a lever to safeguard domestic gas supplies, to January 2030. The government will make the ADGSM easier to activate and negotiate a new heads of agreement with gas producers to ensure uncontracted gas is offered to Australian users.
  • Energy policy will dominate the political debate over the next six The government will seek to balance its renewable energy commitments with keeping electricity costs affordable for businesses and households.

Implications

  • Companies should watch for the passage of key climate, energy and digital legislation that could reshape the regulatory landscape and affect their bottom line.
  • Business should watch for potential changes to the Greenhouse and Energy Minimum Standards (GEMS) Act, which permits the government to set mandatory minimum efficiency requirements for products.

BGA will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Fergus Hanson at fhanson@bowergroupasia.com.

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