Safeguard Mechanism reforms
The Safeguard Mechanism has been reformed following a
consultation process undertaken by the Department of Climate Change, Energy, the Environment and Water.
New obligations and reporting requirements apply to Safeguard facility financial years commencing on or after 1 July 2023:
In relation to each financial year from
1 July 2016 – 30 June 2023, the Clean Energy Regulator (CER) has been required to publish the following information for each facility covered by the Safeguard Mechanism in a given year:
- information about baseline determinations, including if a baseline has been varied
- the baseline emissions number in force for that year
- total reported and net emissions
- the responsible emitter(s) for each facility
- any Australian carbon credit units (ACCUs) surrendered
- whether the facility has a multi-year monitoring period (MYMP) in place
- an estimate of the total number of ACCUs likely to be surrendered by facilities with ongoing MYMPs.
Information about baseline determinations is published iteratively, as determinations are made. Information about compliance outcomes for a financial year have been published as soon as practicable after the 1 March compliance deadline.
In relation to each financial year from 1 July 2023 onwards, the CER is required to publish the above information (excluding the estimate of the ACCUs likely to be surrendered for ongoing MYMPs) and the following information:
- additional information about baseline determinations (for example, the prescribed production variables and facility-specific emissions-intensities for an emissions intensity determination)
- a summary of each facility’s MYMP emissions reduction plan, and, at the conclusion of an MYMP, a statement about the effectiveness of that emissions reduction plan. This information will also be published in relation to MYMPs that commence 1 July 2022
- trade-exposed baseline-adjusted (TEBA) facility decline rates
- information about borrowing adjustments
- the amount of
Safeguard Mechanism credit units (SMCs) issued to a facility
- the amount of a facility’s emissions broken down by carbon dioxide, methane and nitrous oxide
- the amount of ACCUs surrendered (if any) for compliance, broken down by the method under which the ACCUs were created
- for Safeguard facilities that surrender ACCUs equivalent to 30% of their baselines, the facility’s statement explaining why they haven’t undertaken more on-site abatement activities.
Information about baseline determinations will continue to be published iteratively, as determinations are made. Information about compliance outcomes for a financial year will be published by 15 April following the compliance period that the publication relates to.
For each financial year between 1 July 2023 and 30 June 2030, the CER must also publish on its website, by 15 April:
- the Safeguard emissions for the previous financial year
- the net Safeguard emissions for the previous financial year
- the 5‑year rolling average Safeguard emissions for the previous financial year
- the total safeguard emissions for all financial years between 1 July 2020 and the end of the previous financial year.
See
Key dates for more information.
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