The ATA has called for the Government to make changes to the proposed Emissions Reduction Fund safeguard mechanism to avoid penalising trucking businesses. The ATA made the call in a submission to the Federal Department of the Environment.
The safeguard mechanism is intended to ensure that emissions reductions funded by the Emissions Reduction Fund are not offset by increases elsewhere in the economy. It includes a requirement that facility emissions remain below an emission baseline, which can be raised as the business expands.
The proposed mechanism is based on the idea that businesses expand in large steps as they install new plant or equipment. The ATA is concerned it could, as a result, penalise trucking operators for a gradual increase in emissions as their network expands.
The ATA submission calls for the development of an additional safeguard mechanism that reflects the way network businesses like road transport grow, allowing businesses to apply for increases in their baseline due to genuine network expansion.
The proposed mechanism would only apply to large trucking businesses that directly emit more than 100,000 tonnes of greenhouse gas emissions per year in a single state or territory.