Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Hansard source

Perhaps I can provide some background about the safeguard transformation stream. It will provide dedicated funding for projects that reduce emissions at facilities that are trade exposed. It will support projects that reduce emissions covered by the safeguard mechanism, i.e. the eligible facility scope 1 emissions. It's intended to be technology and project neutral. It could support a range of project types like energy efficiency upgrades, shifts to lower carbon processes or fuel switching. Funding through this stream would reduce the capital costs for safeguard facilities to invest in new low-emission technologies and then fast track their adoption. By reducing safeguard facilities covered emissions it can reduce the ongoing cost for trade exposed facilities to meet their falling baselines.

As you have alluded to in your question, another $400 million has been announced for industries providing critical inputs to clean energy industries, including steel, cement, lime and aluminium and alumina. There are no program guidelines yet established for these programs. They will be developed in the coming months. The delivery vehicle will also be considered in the context of the budget.