The Australian Industry Energy Transitions Initiative said the current global energy crunch,spurred by Russia’s invasion of Ukraine,should not distract from the need to cut emissions.

“Decarbonisation can build competitiveness and create jobs by delivering low-cost,reliable,decarbonised energy at scale,a shift to electrification and developing new export-oriented industries,” the statement said.

The Albanese government on Thursdaylegislated reforms to the safeguard mechanism that force the nation’s 215 biggest polluters to cut their carbon footprint by about 5 per cent a year until the end of the decade,to deliver about one-third of the cuts needed to reach Australia’s legally binding 2030 climate goal.

An Orica spokesperson said the company was committed to limiting warming to 1.5 degrees and supported tighter emissions caps for polluters.

“We support the government’s reforms and strengthening of the mechanism,and believe a more robust approach to baseline setting will drive material emissions reductions across Australia’s industrial sector.”

Rio Tinto has previously called for climate policies to limit warming to 1.5 degrees including a market-based price on carbon such as in emissions trading systems.

Cut through the noise of federal politics with news,views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weeklyInside Politics newsletter here.