Major polluters have been put on notice to commit to real emissions cuts this decade, rather than rely on "questionable" carbon offsets and "special treatment" from government to reach abatement targets.
The Climate Council has written to the 10 largest industrial emitters in Australia, including BHP, Chevron and Woodside, declaring the time for "pollution-as-usual is over" as the federal government strives to achieve its newly legislated climate targets.
The letter has been sent as the Albanese government prepares to consider feedback on a redesign of the scheme which places limits on the amount of greenhouse gas emissions which the biggest industrial facilities are allowed to emit.
The so-called safeguard mechanism, which was introduced under the former Coalition government in 2016, has failed to operate as intended with loopholes allowing facilities to increase emissions without penalty.
The Albanese government wants to gradually lower the emissions baseline to help reach its net zero by 2050 target.
The shape of the new system, which Labor hopes to have in place from July next year, looms as the next battleground in the political fight on climate and energy policy.
The Greens wants new coal and gas projects to be banned under the new system, while the Coalition continues to liken changes to the scheme to a carbon tax.
The government last month released a discussion paper outlining a range of options, including the process for setting new baselines.
As the consultation period on the paper ends, Climate Council chief executive Amanda McKenzie has written to the chief executives of the big polluters to demand their companies "pull their weight" in the national emissions reduction task.
New analysis from the Australian Conservation Foundation reveals facilities owned by the 10 companies were responsible for more than half of the total emissions reported under the mechanism from 2017 to 2021.
The Climate Council wants the companies to publicly commit to making "absolute" cuts to their emissions each year through to 2030, rather than rely on carbon credits and offsets to meet their obligations under the mechanism's rules.
Widespread concerns about the integrity of carbon credits earlier this year prompted the Albanese government to task former chief scientist Ian Chubb with undertaking a major independent review of the system.
"Emissions abatement achieved on paper through the use of inexpensive, low integrity offsets will not deliver the rapid reduction we need now to prevent further, harmful climate change," Ms McKenzie said in the letter.
"We have a narrow window this decade to avoid the worst climate impacts, so the time for pollution-as-usual is over".
The letter challenged the companies to take the "positive path" and help lead the once-in-a-century energy transformation, instead of obstructing and delaying progress - which she accused them of doing in the past.
"The Australian community is watching," Ms McKenzie said.
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