The Safeguard Mechanism is part of the National Greenhouse and Energy Reporting Act 2007.
The Safeguard Mechanism provides a framework for Australia’s largest emitters to:
The Safeguard Mechanism places legislated emissions limits, known as baselines, on Australia's largest emitters.
The government set the majority of default values in the Safeguard legislation in 2020.
Consultation is now open on the National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Prescribed Production Variables Update) Rule 2021. This will set default values for the remaining Safeguard-covered sectors.