What we asking the government to do:

1. End free carbon credits in the Emissions Trading Scheme by 2030
   

   1. Increase the industrial allocation phase out rate to 14% per year (from current rate of 1% per year) starting in 2025, to reach zero free allocation by the end of 2030

   2. Reduce the emissions cap by half of the equivalent reduction in freely allocated units

   3. Auction the other half of emissions units no longer freely allocated to generate revenue for reinvesting in climate action
      

2. Cut climate pollution faster by co-investing in the upfront costs for decarbonising highly emitting industries

   1. Use revenue from extra auctioned NZU’s to co-fund up-front decarbonisation options for Emissions Intensive and Trade Exposed businesses where available to help keep jobs in place and clean up industries

   2. Link investments to credible emissions reduction outcomes, and in response to verifiable, ambitious industry decarbonisation plans.

      
      

3. Unlock Green jobs with a Carbon Border Mechanism, sustainable infrastructure investment, and fund a just transition for any affected workers

   1. Introduce a Carbon Border Adjustment Mechanism on imports for industries vulnerable to emissions leakage at the same time as an accelerated phase out of industrial allocation (phased in from 2025 to be fully in place by 2030).

   2. Maintain demand for locally produced steel, concrete and wood processing through sustainable infrastructure coordinated by a Ministry of Green Works as proposed by First Union, or through public procurement policy.

   3. Government to fund just transition plans and involve workers where decarbonisation options aren’t available, in line with a just transition.