Our department is the policy lead for the Safeguard Mechanism. The Safeguard Mechanism requires Australia’s largest greenhouse gas emitters to keep their net emissions below an emissions limit (a baseline).
The Safeguard Mechanism builds on the National Greenhouse and Energy Reporting scheme’s reporting and record keeping requirements.
Together, the National Greenhouse and Energy Reporting scheme and the Safeguard Mechanism help businesses to measure, report and manage their emissions.
Baselines support business growth and allow businesses to continue normal operations, while encouraging lower emissions production.
See the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 (the Safeguard Rule).
The Clean Energy Regulator administers the National Greenhouse and Energy Reporting scheme and the Safeguard Mechanism. The Regulator publishes information like:
The Safeguard Mechanism covers around half of Australia’s emissions, which mainly come from:
The Safeguard Mechanism applies to facilities emitting more than 100,000 tonnes of carbon dioxide equivalent per year.
The responsible emitter who has operational control of the facility must ensure the facility’s net emissions do not exceed the baseline determined by the Regulator.
Read the definitions of a facility and operational control on the Regulator’s website.
A 2017 review of the Australian Government’s climate change policies recommended amending the Safeguard Mechanism to make it simpler and fairer.
The Safeguard Mechanism was amended in March 2019 to bring baselines up-to-date and allow them to keep pace with business growth. These amendments give facilities the option to use published production variables and industry default emissions intensity values in baseline applications.
The Safeguard Mechanism document defines published production variables. It also provides guidance for facilities who want to calculate site-specific emissions-intensity values.
The Safeguard Mechanism was amended in May 2020 to address the impacts of the COVID-19 pandemic. In response to the significant and widespread workforce disruptions at covered facilities, a number of administrative timing changes were made. These maintain the integrity and accuracy of baseline applications.
The National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Extended Transition) Rule 2020 started on 12 May 2020.
The Emissions Reduction Fund encourages businesses to adopt smarter practices to cut their greenhouse gas emissions.
Last updated: 5 October 2021
Content ID: 67329