The oil and gas industry is trying to get international offsets to meet its emission reduction requirements under the federal government's new climate change policy.
More than 200 of the nation's largest industrial emitters have pollution limits set by the safeguard mechanism, a scheme established by the former Coalition government.
The Labor government intends to reduce the emissions allowed under the mechanism to make sure Australia meets its national target of a 43 per cent cut by 2030.
In a submission to the government, the Australian Petroleum Production and Exploration Association APPEA called for a number of measures to be taken to help facilities covered by the mechanism, which includes aluminium smelters, steel manufacturers, LNG production and airlines.
The sector wants to be able to trade carbon credits, as well as being able to use domestic and international offsets.
Access to international markets provides an additional option to support emissions reduction projects and compliance options for safeguard facilities, according to APPEA's submission.
As soon as they are available, the updated safeguard mechanism will allow for appropriate international permits to be included in the range of compliance options. Climate Change and Energy Minister Chris Bowen has previously stated that international carbon credits would only be permitted under strict conditions.
The government would only be allowed if it was 100 per cent guaranteed and satisfied in the integrity of the emissions reductions, he said last month.
APPEA wants all new facilities that come under the safeguard mechanism, such as future gas field developments, to be able to use offsets and carbon credit trading.
In a statement, APPEA chief executive Samantha McCulloch said that this will ensure the certainty of investment in new gas supply to support Australian and regional energy security.
The sector wants the planned start date of July 1, 2023 to be reconsidered, a reassessment of how much major emitters should be required to cut greenhouse gas emissions, and pushes for reductions based on emissions intensity, not absolute values.
The federal government's emissions reduction targets of 43 per cent are projected to be met by the year 2050, according to APPEA's submission.
The major emitters covered by the safeguard mechanism accounted for 28 per cent of Australia's total emissions in 2020 -- 21.
The current limits have not compelled emitters to reduce their emissions, which is a key election commitment from the Albanese government.
The federal government's consultation paper for the sector sets out options for setting and reducing emissions as well as ways to support emissions intensive, trade-exposed industries so that they are not put at an international disadvantage by any change.