Just eight facilities account for half the emissions headroom that currently exists under the Safeguard Mechanism, according to a new analysis by Market Advisory Group.
A draft Safeguard credits Bill would prevent large emitters from earning ACCUs by reducing their scope 1 emissions, and would boost carbon trading transparency.
The federal government should consider setting a maximum price for Safeguard Mechanism Credits, according to the upstream oil and gas industry association.
Having limited, initial emissions headroom in the Safeguard isn't a problem, and Safeguard credits won't be cheap, according to carbon markets and policy expert Raphael Wood.
Safeguard emission limits should decline by 5.6% annually, and Australia should consider introducing an EU-style border carbon levy, according to the Carbon Market Institute.
The federal government should set a floor price for Safeguard credits to prevent excessive price volatility, according to the Australian Financial Markets Association.
Allowing Safeguard facilities to use international units is off the table for now, but might be considered in the future, according to the government's Safeguard Taskforce.