Carbon Leakage and Cement Importation
Commencing back in early 2016, the ASA has been assisting the Department of Environment (the Department) through a Technical Work Group (TWG) to develop a new method to recognise low carbon substitutes in the manufacture of cementitious materials. The TWG consisted of technical experts, including those from industry and relevant government agencies, such as the Clean Energy Regulator to create a method for the Emissions Reductions Fund to recognize iron and steel slags.
The Emissions Reduction Fund (ERF) is the centrepiece of the Australian Government’s Policy suite to reduce greenhouse gas emissions. It is designed to source low-cost emissions reductions by providing Incentives for eligible emissions reduction projects across the economy. The Government has provided $2.55 billion to establish the ERF. The objective of the Emissions Reduction Fund is to help achieve Australia’s 2020 emissions reduction target of five per cent below 2000 levels by 2020. The Government has provided $2.55 billion to establish the Emissions Reduction Fund, with further funding to be considered in future budgets.
Early 2017 the Department invited to the TWG to address problems associated with carbon leakage and cement importation. In particular, issues surrounding the use of locally produced and imported clinker and the likely change in local clinker production and importation levels caused by a project. This was considered critical in assessing whether the method meets the offsets integrity standards of ERF.
Currently the Association is unsure about the Departments direction or solution which addresses these key concerns which could allow for the TWG to continue its work. Association has requested its members be kept abreast of any further work in this area, which includes Concrete.