Australia's oil and gas industry is seeking special treatment in its pitch to a federal government review into how the nation's heaviest greenhouse gas emitters should be constrained.
The sector has released its submission to the review of a safeguard mechanism that governs the biggest emitters, warning against imposing new requirements during a global energy crisis.
The Australian Petroleum Production and Exploration Association (APPEA) argues the mechanism should support the government's ambitious new climate targets "at the lowest possible cost".
A proposed new type of carbon credit known as safeguard mechanism credits, to be earned for being below emissions limits, was also an important element, the industry body said.
But independent energy advisory firm RepuTex says the free credits would lock in fossil fuel production and hinder the transition to a net-zero economy.
Any changes to the mechanism must also ensure the long-term competitiveness of the economy, APPEA says, since liquefied natural gas is Australia's second-largest export earner after iron ore.
APPEA chief executive Samantha McCulloch said the industry is "firmly committed" to investing in technology, reducing emissions and achieving net zero across the Australian economy by 2050.
"We are also playing our part to reduce global emissions as Australia's LNG provides cleaner energy to our trading partners in Asia."
But very few of Australia's competitors were proposing to impose emissions constraints or additional costs on their liquefied natural gas export sector, she warned.
The so-called safeguard mechanism already applies to more than 200 facilities that each produce more than 100,000 tonnes of greenhouse gases each year, and is designed to cap how much pollution can be emitted.
Facilities covered by the mechanism made up 28 per cent of the country's total emissions in 2020/21.
The Albanese government has increased the national emissions reduction target to 43 per cent by 2030 as part of a suite of policies to get to net-zero emissions by 2050.
Other plans include changes to the safeguard mechanism - Australia's current carbon-pricing tool - which are expected to take effect from July 1 next year.
But the mid-2023 start date would be "ambitious", according to the oil and gas industry.
The 2030 cut-off for some carbon credits was also rejected by the sector.
APPEA said the LNG export industry would generate $84 billion in export earnings this financial year but operated in a highly competitive global market.
The safeguard mechanism should support investment in new gas supply to support Australian and regional energy security, the industry body said.
Critics say the whole mechanism is a free pass for the dirtiest companies to continue pumping out pollution.
Greenpeace has said the review will do little if Australia continues to approve new coal and gas fields.
