Australia Loosens Its Carbon Bond, but Cost of the Shift Will Land on Households
Australia's federal government is stepping back from carbon targets that require faster industrial decarbonisation. The retreat, shaped by industrial-lobby pressure, also means continued increases in household power bills. Greens and unions are attacking the move from opposite ends.
The Department of Climate Change and Energy under the Albanese government said it would soften enforcement of the so-called Safeguard Mechanism, the cap on industrial carbon emissions. Steelmakers, aluminium smelters and fertiliser producers will receive extra time to comply with required reductions.
Economists who back the change argue that abrupt tightening risks plant closures and a deeper dependence on imports. The Greens and climate groups warned that Australia's 2030 targets are now in jeopardy. The Australian Energy Regulator separately forecast that retail power prices will rise around 8% on average.
The Australian dollar reacted modestly. Shares of major producers including BHP and Woodside Energy ended higher in Sydney. Markets, however, saw the move as another layer of uncertainty to weigh against US tariff pressures.
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