Posted: 2023-02-08 18:00:00

The morning after the Liberals' election drubbing last May, Senate leader Simon Birmingham was candid about what went wrong.

After losing 17 seats to "teal" independents, the Greens and Labor, Birmingham frankly admitted the "real turning point" for the party was its failure to lock in a climate and energy policy "that could have achieved a degree of bipartisanship". This cost the Liberals "a significant price down the track".

Two months later, when surviving Liberal MPs gathered back in Canberra for the first time, federal director Andrew Hirst and former strategist turned pollster Tony Barry delivered a detailed election debrief.

They backed up Birmingham's point. Climate change was a "critical" issue in the election wipe-out, Barry argued, symbolic of a "deeper values disconnect" with the electorate. The path back to victory would be "very difficult" without flipping some of the "teal" seats.

Yet since then, there's been little sign of any shift on climate policy.

A coal-fired power station in situated among grass and trees
The nation's biggest polluters will be required to cut their emissions by 4.9 per cent per year to 2030 under the federal government's proposed plan.(ABC Gippsland: Jarrod Whittaker)

The first opportunity to demonstrate a fresh approach came a few months after the election, when the Albanese government sought to legislate promised climate targets. The Coalition dug in and voted "no".

This week came another chance to send a signal to lost voters that the Liberals had heard the message on climate. Once again, the opportunity was lost.

The Coalition has decided to vote against strengthening what's called the Safeguards Mechanism, the main weapon in the government's armoury to bring down emissions.

Going down a familiar path

The Safeguards Mechanism was originally designed by then Environment Minister Greg Hunt, eight years ago. The idea was to stop big companies continuing to grow their emissions. 

But the settings were generous, and hardly a deterrent. Then prime minister Tony Abbott had no interest in slugging heavy emitters with any sort of cost.

Still, the mechanism had been established by Hunt, who always knew it could be ratcheted up into a serious policy down the track. In the lead-up to last year's election, that's exactly what the Business Council of Australia recommended as the best way to achieve the now bi-partisan emissions target of net-zero by 2050. 

The front bench of the House of Representatives watch Albanese speak.
Peter Dutton appears confident he can revive the "axe the tax" scare as cost-of-living pressures bite harder this year.(ABC News: Matt Roberts)

The BCA called for a Safeguards Mechanism with teeth, to give business certainty. It was a significant intervention. 

Labor leapt on it. Here was a way to cut emissions using a mechanism designed by the Coalition, with stronger rules supported by business. Anthony Albanese's hope was to end the climate wars.

Under the plans now before parliament, 215 companies would be required to gradually lower their emissions by almost 5 per cent a year. There's an incentive for businesses to beat their baselines and trade credits. Those who exceed the caps must buy offsets.

The policy won broad support from business and even most environment groups — quite a feat. The Business Council, the Australian Industry Group and the Australian Chamber of Commerce have all been urging the Coalition to get on board.

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