According to the Guardian on August 15th, Australia plans to launch a mechanism building review to determine whether to impose carbon tariffs on carbon intensive imported products such as cement, steel, and aluminum. This mechanism is similar to the EU carbon boundary regulation mechanism. The final review report will be completed in the third quarter of 2024.

On August 15th, Australian Minister of Climate Change and Energy Chris Bowen announced that the Australian federal government will initiate a review to determine whether the Carbon Boundary Adjustment Mechanism (CBAM) or other policies to avoid carbon leakage are suitable for Australia. Australia needs to invest a significant amount of resources in important areas such as steel, cement, and aluminum to become a leader in renewable energy superpowers and key minerals.

Chris Bowen stated that the loss of cement, steel, aluminum or fertilizer production capacity in Australia poses economic risks to the Australian economy and clean energy transformation, making Australia's ability to cope with international supply chain shocks weaker. The review in Australia includes an assessment of the risk of carbon leakage and the feasibility of Australia's carbon boundary adjustment mechanism.

Starting from July 1, 2023, the Australian government approved a protection mechanism aimed at reducing carbon emissions from over 200 large industrial enterprises. The goal set by Australia is to reduce carbon dioxide emissions by 43% by 2030 compared to 2005. When competing with companies from other countries without carbon emission restrictions, Australian steel and aluminum companies will be protected by this mechanism. (Yi Wen)

China Metallurgical Daily (September 1, 2023, 2nd edition, 2nd edition)