Key facts
- New Zealand may consider a carbon border adjustment mechanism (CBAM).
- New Zealand's consideration is aligned with Australia's potential CBAM.
- Climate Change Minister Simon Watts made the statement.
- Australia is reviewing its safeguard mechanism.
- Australia's review may include cement and clinker imports.
- New Zealand would "look closely" at Australia's approach.
New Zealand is contemplating the adoption of a carbon border adjustment mechanism (CBAM), contingent on Australia's decision to implement a similar policy. Climate Change Minister Simon Watts indicated that New Zealand would "look closely" at Australia's proposed CBAM if it moves forward. Australia is currently undertaking a review of its safeguard mechanism, a process that might lead to the inclusion of carbon pricing for specific imported goods, such as cement and clinker. This potential policy alignment between the two neighboring countries suggests a coordinated effort to address carbon emissions across borders. The development reflects a broader trend of nations exploring carbon pricing tools to meet climate targets and ensure a level playing field for domestic industries. Further details on Australia's review and potential CBAM specifics are anticipated, which will then inform New Zealand's final decision on the matter.