Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Carbon Market Institute (CMI) is strategically engaged on climate policy and appears supportive of drastic action on climate change, supporting a range of specific climate-related regulations whilst generally emphasizing the need for increased ambition in Australia’s climate policy. While CMI adopts a largely positive position on the energy transition, it also appears to continue to support a role for fossil gas in the energy mix.
Top-line Messaging on Climate Policy: CMI is strongly supportive of ambitious climate action in its top line messaging. Since 2018, CMI has consistently supported the target of net-zero emissions by 2050. In a March 2023 press release, CEO John Connor advocated for Australia to achieve at least 50% emissions reductions by 2030 and negative emissions by 2050. CMI likewise supported the Paris Agreement goal of limiting warming to 1.5°C in a February 2023 consultation submission.
CMI also appears to support the need for government regulation to respond to climate change, with Chair Kerry Schott stating that “the task of reducing emissions needs multiple pieces of legislation” in a March 2023 National Press Club Address. However, CEO John Connor appears to qualify this support for regulation in CMI’s Carbon Farming Industry Roadmap, published in April 2022, by stating support for market-based approaches to emissions reduction.
Engagement with Climate-Related Regulations: CMI displays positive engagement with climate-related regulations in Australia. The association has consistently advocated for ambitious reforms to the Safeguard Mechanism in 2022-23, backing binding declining baselines aligned with Australia’s emissions target and supporting scalability of the mechanism to support ratcheting climate ambition into the future in September 2022, January 2023 and February 2023 consultation responses. CMI also advocated for the implementation of a climate trigger in the Environment Protection and Biodiversity Conservation Act in a February 2023 Public Hearing on the Safeguard Mechanism (Crediting) Amendment Bill 2022.
CMI also appear to support greenhouse gas emissions targets in Australia, with CEO John Connor welcoming the NSW Government’s commitment to 70% emissions reductions by 2035 in a December 2022 press release, and Chair Kerry Schott advocating for Australia to set a Federal greenhouse gas emissions target of “at least a 70% reduction below 2005 levels” in a March 2023 National Press Club Address. Additionally, in its May 2022 post-election briefing, CMI appeared to issue support for Australian vehicle emissions standards and clean vehicle subsidies. In the same briefing, the association also backed the reform of Australia’s National Energy Productivity Plan, including provisions for increasing energy efficiency across the energy sector.
Positioning on Energy Transition: CMI adopts a largely positive position on the energy transition. In a February 2023 consultation submission, CMI advocated for the Australian Government to ensure funding under its Powering the Regions Fund (PRF) targets approaches that directly result in industrial decarbonization, whilst also appearing to oppose fossil fuel subsidies by supporting strict funding eligibility criteria for coal and gas projects under the PRF. The association likewise advocated for reforms to support the decarbonization of Australia’s energy sector in its May 2022 Post-election Briefing.
Notably, however, CMI appears to support a continued role for fossil gas in the energy mix, without reference to the need for clear conditions related to carbon capture and storage or mitigating methane emissions. As reported in a February 2023 Australian Financial Review article, CMI Chair Kerry Schott criticized the Victorian Government for “demonizing gas”, while going on to state that “I’m perplexed how you can run a system on renewables and batteries when you could have weeks of rain and can’t recharge your batteries, and wind droughts. You have to have gas. In due course you can move it to hydrogen, but you need gas peaking plants”.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the industry association's scores each week, the summary above is updated periodically. This summary was last updated in Q4 2023.