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ABC News
ABC News
Business
business reporters Kate Ainsworth and Rhiana Whitson

Safeguard mechanism agreement unlikely to increase energy prices and stop future coal and gas projects, experts say

The safeguard mechanism will reduce carbon emissions by an average of 4.9 per cent each year until 2030. (Reuters: Tim Winborne )

Concerns that the landmark climate policy to reduce emissions will deter energy investment, increase power prices and put a stop to future coal and gas projects are highly unlikely, industry experts say.

On Monday, the federal government announced it had negotiated a deal with the Greens on its safeguard mechanism, a key scheme to reduce Australia's carbon emissions by a legislated target of 43 per cent by 2030.

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