Market Update | 8 October

• Queensland Government expands the appliance rebate program to small to medium businesses 
• IPART extends the Heat Pump Consultation deadline to 13 October
• Carbon Border Adjustment Mechanism (CBAM) launched in Europe

Queensland Government Expand Rebate Program to SMEs 

This week, the Queensland Government announced its expansion of the household appliance cashback scheme to small and medium-sized businesses. The rebates provided will be up to 50% of the cost of high-efficiency appliances, and cover an expanded range in comparison to the household program. Eligible technologies include fans, lights, motors, compressors, and chillers. 

Carbon Border Adjust Mechanism (CBAM) was launched in Europe

Last Sunday, the Carbon Border Adjust Mechanism (CBAM) was launched in Europe to start taxing carbon-intensive imports from 2026. Prior to this date the imported aluminium, cement, iron and steel, fertilisers, electricity, and hydrogen will begin by reporting the embedded carbon emissions in the products. Imports from countries with higher carbon values per unit of production and fewer recognised offsets will ultimately be taxed more highly and increase the cost. The requirement to report will necessarily be on the European purchaser of the product. Products will be encouraged to be provided with fully verified emissions data as defaults will be applied where they are not. The defaults will logically be set very conservatively.

In effect, CBAM extends the reach of the ETS to all those covered products being imported into Europe. The number and type of products will be expanded over time. The ability for Australian exporters to respond in a positive manner to the challenge of both reporting and remaining competitive is largely within the control of the companies involved. Whilst it is true that Australia has some experience in reporting voluntarily and through the National Greenhouse Emissions Reporting Scheme (NGERS), the intensity of emissions per unit of production in Australia compared to other countries is generally less favourable.

Many of the emissions reduction activities from using less intensive inputs to varying inputs to production can benefit from Federal and state-based support through grants, rebates, and incentives. CBAM could, for those able to measure and reduce emissions, be seen as an opportunity to successfully compete with products from other countries with a less developed or supported emissions reduction industry.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.

Katie Tebbatt | Business Development Manager, Energy & Carbon Services
Katie specialises in Commercial Lighting (NSW, VIC & SA), Measurement & Verification, and energy certificates including LGCs & ACCUs.