"We also welcome news that Labor will not be using Kyoto carryover credits to meet its Paris targets, along with comparable nations, which have ruled out using this dodgy accounting practice that does nothing to reduce emissions", said Ms McKenzie.
The electric vehicle policy would be the first of its kind in Australia and has won the support of the National Roads and Motorists' Association (NRMA), which went even further in calling for a ban on the sale of petrol vehicles as early as 2025.
Opposition climate change spokesman Mark Butler disagreed, saying Australian companies were allowed to trade in every other kind of worldwide market.
Australia's A$1.9 trillion economy is heavily dependent on resources with coal and iron ore its top export earners.
"This policy would be a huge step forward from where we are now, but if the ALP is elected it will need to be rapidly ratcheted up to tackle the escalating climate crisis", she said. "Farmers understand that if we don't act on climate change, there will be more frequent and more protracted droughts, floods, dust storms and hail storms", he said. "Whether they are from the Australian carbon farming sector or overseas robust, credible markets or the electricity sector, the important thing is for cuts in pollution to be achieved", he said.
"Labor has listened to industry and stakeholders who desperately want stability after this chaotic government - they don't want to start from scratch with another mechanism".
The mechanism, which now applies to 140 companies, sets a baseline of emissions for businesses.
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Only a handful of companies have exceeded their existing limits and the government made changes in 2018 that allows the baseline to be moved higher if a business expands production.
"We welcome news that climate change will be a priority for Labor's worldwide development program with a focus on some of our closest neighbours which are highly vulnerable", said Ms McKenzie.
This would lead to businesses being able to choose the most efficient and cost-effective manner to offset emissions, and would also let them sell their own credits if they cut pollution below their baseline, he said.
Labor says modelling shows that under both the coalition's 26 per cent emissions reduction target and Labor's 45 per cent target, the economy will grow about 23 per cent over the course of the 2020s.
Agriculture and electricity generators will not be covered by the expanded safeguard mechanism.
Trade-exposed industries like steel, aluminium and cement would receive "tailored treatment" under the plan, while the transport sector would be subject to vehicle emissions standards, to be negotiated after the election.