Carbon leakage readiness: what businesses should be thinking about now
Client AlertWhat Australia’s Carbon Leakage Review means for trade, imports and business costs
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High global demand, new mining projects and expansions have created opportunity in the sector – from a global perspective there is continued growth in iron ore, natural gas, and coal markets. Yet, the mining industry has been forced to overcome many challenges as business models adapt to disruption and operational models shift as we move towards a growing net zero economy. Balancing its role in the energy transition discussion and supporting domestic and international supply of critical metals and minerals, like lithium, requires deep industry expertise.
Yet supply and demand fluctuations and disrupted reliability continue to impact energy prices while we build scale in the renewables space. Wind and sun are plentiful in Australia, as are the inputs into batteries. However, businesses operating in the renewable energy sector must navigate a range of changing issues, obligations, and opportunities. You can learn more about our renewable energy capabilities here.
To achieve net zero and a future transition away from fossil fuels, Australian companies need to leverage their investments in technology to allow for more advanced data analytics and artificial intelligence to improve efficiency, safety, compliance, and drive innovation.
Depending on where you are in the journey, the challenges and opportunities facing those operating in the energy and resources markets are unique, and the circumstances can vary significantly. We’re here to support you at all stages of the life cycle to navigate challenges, leverage opportunities and incentives.
Robotics, data analytics and programming are being used by some businesses, but they will soon become essential for those operating in the energy and resources sector to remain competitive.
While demand for resources and energy grows at a domestic and global scale, current market conditions are ideal for companies looking at growth and considering global expansion.
Australia has ample resources and is presented with a golden opportunity to support clean energy technologies by tapping into both our critical/ or rare minerals and renewals supply.
What Australia’s Carbon Leakage Review means for trade, imports and business costs
Mining contractors are operating in an increasingly complex and competitive Australian mining sector. With shifting commodity markets, cost pressures, and evolving contract models, understanding contractor performance, financial strength, and growth opportunities is more important than ever.
As of April 9, 2025, a minimum universal tariff of 10 per cent has been applied to all imported goods into the United States, while certain countries face higher reciprocal tariffs based on their US trade deficit.
Whether you’re generating alternative energy sources or transitioning from mining exploration to production, each organisation and its circumstances will be unique. As you respond to new market demands both here and overseas, it’s important to have a handle on your obligations and requirements. Whether it’s tax, audit or risk, we cut through the compliance and complexity.
Despite the shift towards a knowledge-based economy, the resources sector remains strong, with rising M&A activity. Energy deals are on the rise, driven by investor interest in both traditional and renewable resources. As Australia’s energy sector grows, increased regulation and reporting highlight the importance of funding, valuations, and financial modelling. Technology-driven companies will lead future activity, with critical minerals key to clean-energy technologies like batteries, wind turbines, electric vehicles, and solar panels.
While global demand for traditional resources continues due to increasing construction, manufacturing and clean energy activity, high energy prices will remain until alternative supply solutions are found, or geopolitical tensions end. In an industry heavily reliant on global economic conditions, it’s crucial to be supported by a Government negotiating or renegotiating free trade agreements. Australia has signed free trade agreements with the UK and India, significant export markets that are anticipated to boost export activity. Reach out to understand what opportunities you can leverage to enter new markets.
New ways of doing things and innovative products have evolved out of businesses trying to do more with less and finding ways to differentiate themselves in a crowded global market. With sovereign capability and supply chain resilience high on State and Federal agendas, we’re seeing a range of grants and funds available to support manufacturers to scale up, innovate, invest, and create new jobs. We understand how to leverage the innovation lifecycle and can support you to take a great idea to the next level.
Spanning across software, automation, machine learning and more, technology has become an instrumental part of process optimisation in energy and resources. Resources, including critical and other rare earth minerals are the backbone of many low-emission technologies. As upfront capital investment to adopt these often-disruptive technologies continues to fall, organisations must find efficiencies across engineering, design, material waste, better affordability to attract interest from investors. This enables organisations to remain competitive, focus on the right projects, value-add, and derive economic benefit with scalability.
Data protection is critical to all businesses. Recent data breaches have signified the importance of cyber security and operational resilience. Having a strong strategy in place to prevent, minimise and rectify customer data loss is more crucial than ever. This should be front of mind for Directors and Boards not only from an IP and release of data perspective, but also due to these incidents getting receiving media attention and scrutiny, often resulting in loss of public and shareholder confidence.
Australian states and territories continue to implement reforms and restructures of their Native Title frameworks and policies. New sites and projects will need to be cognisant of Native Title rights and consult with local Aboriginal and Torres Strait Islander communities to come to a mutually beneficial arrangement with the traditional custodians of the land and continue the push toward greater efficiencies in the Native Title process.
Transformation through energy transition
From investments to merger and acquisition, we help you access sources of finance, present your case to potential funders, and negotiate a long-term sustainable relationship.
We take a hands-on and proactive approach to advise you on strategies for sustainable growth – from supply chain, to current opportunities and challenges, and more.
Our expert audit approach will help you comply with regulations, improve the quality of your financial reporting and internal processes.
We work with clients at all stages of their business lifecycle – and through all their organisation’s major events – to navigate tax obligations.
From compliance to cyber, tech enabled businesses face a raft of risks. We work with clients to implement risk management processes and strategies to reduce risk and identify opportunity to extract commercial value.
Transformation through energy transition
Our expert audit approach will help you comply with regulations, improve the quality of your financial reporting and internal processes.
From investments to merger and acquisition, we help you access sources of finance, present your case to potential funders, and negotiate a long-term sustainable relationship.
We work with clients at all stages of their business lifecycle – and through all their organisation’s major events – to navigate tax obligations.
We take a hands-on and proactive approach to advise you on strategies for sustainable growth – from supply chain, to current opportunities and challenges, and more.
From compliance to cyber, tech enabled businesses face a raft of risks. We work with clients to implement risk management processes and strategies to reduce risk and identify opportunity to extract commercial value.
Partner and National Head of Energy & Resources
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In the meantime, if you have any questions, please don't hesitate to contact us via communications@au.gt.com.

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