Productivity Commission

Safeguard Mechanism review

Productivity Commission submission

19 October 2026

This submission considers how the Safeguard Mechanism can continue to contribute to Australia’s emissions reduction objectives while building on its market-based foundations. 

The submission supports preserving flexible compliance arrangements, broadening scheme coverage over time, and introducing a border carbon adjustment for cement and clinker alongside the removal of overlapping trade-exposed assistance.

The PC provided the submission to the review on 17 September 2026 and it was published on our website on 19 October 2026.

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