Australian Industry Group represents businesses of all sizes in many sectors across Australia. They are affected by climate change and climate policy in many ways, but there is a common interest in a successful and economically efficient global effort to limit climate change, in which Australia plays its full part while increasing its prosperity.

The Safeguard is an important, but not the only, tool to help transition Australia to a prosperous net zero emissions economy at least cost.

DCCEEW's consultation paper on the Safeguard Mechanism raises many important issues, but one common thread connecting them is the importance of addressing the risk that Australian climate policy creates significant competitive disadvantages for trade exposed manufacturing subsectors that are currently emissions intensive, but which will remain important to our economy over the long term.

The risk of carbon and investment leakage is a serious but solvable concern. Managing that risk is essential for the Safeguard to continue on its current pathway. Resolving it more durably and efficiently can unlock greater function and ambition in the Safeguard over time.