The majority voted in favour of agreeing to pass the bill in the Senate, as amended. In parliamentary jargon, they voted to read the bill for a third time. As several amendments were made to the bill in the Senate, it will now be sent to the House of Representatives to see whether they agree with the changes.

What does the bill do?

The bills digest, which is a document put together by the parliamentary library, sets out the following key points:

  • Proposed revision of the existing ‘Safeguard Mechanism’ applying to Australia’s largest emitters is a central element of the Australian Government’s commitment to achieve a 43% reduction in greenhouse gas emissions by 2030 and net zero by 2050.
  • The Safeguard Mechanism commenced operation on 1 July 2016 and has, to date, operated as a greenhouse gas emissions reporting mechanism for around 212 of Australia’s largest industrial facilities.
  • The Safeguard Mechanism (Crediting) Amendment Bill 2022 amends relevant Acts to alter the Safeguard Mechanism so that covered facilities must reduce their scope 1 (direct) emissions in future.
  • The primary amendments to the National Greenhouse and Energy Reporting Act 2007 and Australian National Registry of Emissions Units Act 2011 establish the administrative architecture to create ‘safeguard mechanism credit units’ (SMCs). The amendments provide for dealings in SMCs in the same manner as Australian Carbon Credit Units (ACCUs).
  • Key elements of the revised scheme will be implemented via amendments to existing legislative instruments (rules) made by the Minister. The Clean Energy Regulator (CER) will also be able to make key determinations, as provided for in these instruments.
  • Stakeholders have expressed concern about the limited timeframe for consultation and staggered release of key documents (including legislative instruments and the Independent Review of Australian Carbon Credit Units (Chubb Review)), which they regard as limiting a fulsome consideration of the proposed amendments.
  • Moreover, whilst environment and climate focused groups have argued that amendments are insufficient, key industry stakeholders acknowledge the need for change but have expressed concern about particular aspects of the proposed amendments.

Votes Passed by a small majority

Nobody rebelled against their party.

Party Votes
Australian Greens (109% turnout) 12 Yes 0 No
Penny Allman-Payne Queensland Yes
Dorinda Cox WA Yes
Mehreen Faruqi NSW Yes
Sarah Hanson-Young SA Yes
Nick McKim Tasmania Yes
Barbara Pocock SA Yes
Janet Rice Victoria Yes
David Shoebridge NSW Yes
Jordon Steele-John WA Yes
Lidia Thorpe Victoria Yes
Larissa Waters Queensland Yes
Peter Whish-Wilson Tasmania Yes
Australian Labor Party (64% turnout) 16 Yes 0 No
Carol Brown Tasmania Yes
Anthony Chisholm Queensland Yes
Raff Ciccone Victoria Yes
Nita Green Queensland Yes
Karen Grogan SA Yes
Jenny McAllister NSW Yes
Malarndirri McCarthy NT Yes
Fatima Payman WA Yes
Helen Polley Tasmania Yes
Tony Sheldon NSW Yes
Marielle Smith SA Yes
Glenn Sterle WA Yes
Anne Urquhart Tasmania Yes
Jess Walsh Victoria Yes
Murray Watt Queensland Yes
Linda White Victoria Yes
Tim Ayres NSW Absent
Catryna Bilyk Tasmania Absent
Patrick Dodson WA Absent
Don Farrell SA Absent
Katy Gallagher ACT Absent
Deborah O'Neill NSW Absent
Louise Pratt WA Absent
Jana Stewart Victoria Absent
Penny Wong SA Absent
Jacinta Nampijinpa Price NT Country Liberal Party No
Andrew McLachlan SA Deputy President No
David Pocock ACT Independent Yes
Lidia Thorpe Victoria Independent Absent
Jacqui Lambie Network (100% turnout) 2 Yes 0 No
Jacqui Lambie Tasmania Yes
Tammy Tyrrell Tasmania Yes
Liberal National Party (100% turnout) 0 Yes 2 No
Matthew Canavan Queensland No
James McGrath Queensland No
Liberal Party (78% turnout) 0 Yes 18 No
Alex Antic SA No
Wendy Askew Tasmania No
Michaelia Cash WA No
Claire Chandler Tasmania No
Richard Colbeck Tasmania No
Jonathon Duniam Tasmania No
David Fawcett SA No
Sarah Henderson Victoria No
Hollie Hughes NSW No
Jane Hume Victoria No
Kerrynne Liddle SA No
Matt O'Sullivan WA No
Gerard Rennick Queensland No
Linda Reynolds WA No
Anne Ruston SA No
Paul Scarr Queensland No
Dean Smith WA No
David Van Victoria No
Simon Birmingham SA Absent
Andrew Bragg NSW Absent
Slade Brockman WA Absent
James Paterson Victoria Absent
Marise Payne NSW Absent
National Party (50% turnout) 0 Yes 2 No
Ross Cadell NSW No
Bridget McKenzie Victoria No
Perin Davey NSW Absent
Susan McDonald Queensland Absent
Pauline Hanson's One Nation Party (50% turnout) 0 Yes 1 No
Malcolm Roberts Queensland No
Pauline Hanson Queensland Absent
Sue Lines WA President Yes
Ralph Babet Victoria United Australia Party No
Totals (77% turnout) 32 Yes – 26 No