Australia's building industry is now facing a new challenge as Energy Minister Chris Bowen revealed the Albanese government is considering a carbon tariff on high-emission imports like cement and steel in its next term, aiming to achieve Australia’s 2030 emissions reduction targets.

The proposal, known as a carbon border adjustment mechanism, would tax imports from countries without equivalent carbon pricing to prevent carbon leakage. This could further increase operational costs for Australia's construction industry, already struggling with bankruptcies.

The Australian National University (ANU)’s Professor Frank Jotzo said in a preliminary analysis that clinker, cement, and lime are high-risk industries, with steel, ammonia, and glass at medium risk.

While under evaluation, market participants fear the carbon tariff would increase import costs for building materials, intensifying pressure on the construction industry.