The Smart Energy Council, an Australian renewable energy industry body, is proposing that coal-fired power stations be charged for pollution if their owners keep them running beyond previously announced closure dates. The idea is intended to stop delayed coal closures from undermining confidence in renewable energy investment, and comes as the federal government reviews the Safeguard Mechanism, the scheme regulating Australia's largest emitters, following extensions at plants such as Eraring in New South Wales.

Under the proposal, to be unveiled at the council's Brisbane conference, any coal plant operating past its scheduled closure date would need to fully account for its emissions under the Safeguard Mechanism, buying Australian Carbon Credit Units to cover every tonne produced. It would not force stations to shut, but would remove their free pollution allowance, with all coal plants reaching a zero-emissions allowance by 2035. Council chief executive David McElrea and Climate Energy Finance director Tim Buckley argue the change would give investors and communities greater certainty, and suggest it could be phased in gradually, potentially from 2030, using closure dates from the Australian Energy Market Operator's Integrated System Plan. The Safeguard Mechanism consultation runs until 18 September, with a government report due in early 2027.