The passage of Safeguard Mechanism legislation is a big step towards getting on with the ‘how’ of this transition, Business Council chief executive Jennifer Westacott said.

“Make no mistake, this is critical progress towards securing a transition that delivers new jobs and new opportunities.

“We welcome the passage of this legislation and the adoption of key elements of the Business Council’s plan to reach net zero emissions.

“After more than a decade of uncertainty and equivocation employers now have certainty about our emissions targets and how we’re going to get there.  

“As designed the Safeguard Mechanism and its baseline targets are tough but achievable.

“We’ll need to work carefully through the implementation of this policy to avoid unintended consequences that lock critical transition fuels including gas out of the market.

“The parliament has acted to give businesses the certainty they need to make the big, decades long investments needed to get on with the job.

“Australians want affordable, reliable and lower emission energy and manufacturing, and that can only be delivered with a clear framework that drives investment.

“Decarbonisation is a huge challenge for Australia and it’s also an opportunity, but only if we have a workable plan in place to drive the monumental investment needed.

“This is big economic reform and businesses are ready to work with the government to make sure we get it right to secure Australia’s economic future.”