An Analysis of the Impact of Carbon Emission Policy on Project Economics in Australia

In support of the goals of the Paris Agreement, Australia set an ambitious wide target to reduce greenhouse gas emissions by 26 to 28 percent below 2005 levels by 2030. Australia issued safeguard mechanism which establishes a legislated obligation for Australia’s largest emitters to keep emissions below their baseline emissions limit. The challenges of the oil company under the safeguard mechanism are analyzed. The economic evaluation model to calculate the impact of the carbon policy on the economics of oil and gas project are put forward. Moreover, the main contribution of this study is to analyze the important factors for oil and gas emitters taking CCS technology. Finally, some suggestions for carbon policymaker are proposed to achieve the carbon reduction target.