Skip Ribbon Commands
Skip to main content

The safeguard mechanism

28 October 2019

NGER​​

Important information for responsible emitters

The National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 has recently been amended to include prescribed production variables and default emissions intensities in Schedules 2 and 3 of the Safeguard Rule.

Applications can now use the prescribed production variables and default emissions intensities.

Applications for calculated and production adjusted baselines that commence 1 July 2018 may be submitted up until, and including, 15 April 2020 for facilities with a declared multi-year period covering 2018–19 and 2019–20.

Together with the reporting obligations under the National Greenhouse and Energy Reporting Act 2007, the safeguard mechanism provides a framework for Australia’s largest emitters to measure, report and manage their emissions. It does this by encouraging large facilities, whose net emissions exceed the safeguard threshold, to keep their emissions at or below emissions baselines set by the Clean Energy Regulator.

Threshold

The safeguard mechanism applies to facilities with scope 1 covered emissions of more than 100,000 tonnes of carbon dioxide equivalent (CO2-e) per year. See coverage for more information.

Emissions baselines

Emissions baselines represent the reference point against which emissions performance will be measured under the safeguard mechanism.

Baselines are set in different ways depending on whether the facility is new, the facility’s industry sector and whether the baseline is fixed or annually adjusted for production. A baseline may be adjusted to accommodate economic growth or natural resource variability. See baselines for more information.

Who is responsible?

Safeguard obligations rest with the person with operational control of the facility, the ‘responsible emitter’. This person is required to keep the facility’s net emissions at or below its emissions baseline. The responsible emitter may be an individual, a body corporate, a trust, a corporation sole, a body politic or a local governing body.

Managing emissions

Responsible emitters with a facility that has, or is likely to, exceed its baseline have a number of options to manage the excess emissions situation. For example, the responsible emitter can reduce the facility’s net emissions by purchasing and surrendering Australian carbon credit units (ACCUs) to offset their emissions. Both Kyoto and non-Kyoto ACCUs can be used as offsets under the safeguard mechanism. Responsible emitters may also apply for a calculated baseline or access other management options in certain circumstances where they have, or expect to, exceed their baseline.

See managing excess emissions for more information.

Meeting safeguard requirements

The safeguard mechanism is administered through the National Greenhouse and Energy Reporting (NGER) scheme and is designed to minimise additional mandatory reporting requirements.

As well as keeping their emissions below their baseline, safeguard facilities must adhere to the reporting and record keeping requirements of the NGER scheme.

Responsible emitters for safeguard facilities who are not already registered under the National Greenhouse and Energy Reporting Act 2007 must apply to register. Applications for registration are due by 31 August following the year in which the person first becomes a responsible emitter.

Publishing reported emissions

The Clean Energy Regulator is required to publish information about all designated large facilities covered by the safeguard mechanism for each reporting year. This publication will occur after the 1 March compliance deadline.

For each facility covered by the safeguard mechanism in a reporting year, information published includes the baseline emissions number in force for that year, total reported emissions, the responsible emitter(s) for each facility, and any ACCUs surrendered.

Information is also published about any designated large facilities that remain in an excess emissions situation on or after the 1 March compliance deadline.

See safeguard facility reported emissions for more information.

Documents on this page Documents on this page

Was this page useful?

LEAVE FEEDBACK
 
 
preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only