This study demonstrates how the proposed design of the Australian government’s Safeguard Mechanism (SGM) includes loopholes that will enable and effectively subsidise highly polluting new fossil fuel projects, placing Australia’s emission reduction targets at risk, while transferring billions of dollars of additional costs to other Australian businesses, consumers, and taxpayers.

The report examines ten proposed new resource projects recently approved or assessed by the Western Australian government, including Woodside’s controversial Scarborough and Browse LNG projects. Implications of these projects for the SGM and Australia’s emissions reduction goals are also presented.