Important information for responsible emitters
The final elements of the transition to the new baseline setting arrangements, including the expiry of reported baselines, will be in place for the 2021-22 compliance period.
Please be aware that:
- The final year of reported baselines was 2020-21, unless you are a grid-connected electricity generator.
- Facilities coming off reported baselines can apply for a production-adjusted baseline, without needing a calculated baseline first, provided they use prescribed production variables and default emissions intensities.
- Calculated baselines commencing after 2020-21 must use prescribed production variables and default emissions intensities unless applying under the inherent emissions variability criteria.
- Production adjusted baselines commencing after 2020-21 must use prescribed production variables and default emission intensities unless moving from a calculated baseline with site-specific values.
Emissions baselines are the reference point against which emissions performance will be measured under the safeguard mechanism. A safeguard facility must keep its net emissions levels at or below its baseline.
There are four main types of emissions baselines:
-
Reported baselines—determined based on the historical high point of emissions reported under the National Greenhouse and Energy Reporting scheme between 2009–10 and 2013–14. Reported baselines cease on 1 July 2021. Facilities will need to apply for a different type of baseline for 2021-22, onwards.
-
Calculated baselines—determined based on an independently audited forecast of production and either forecast emissions intensity provided by the responsible emitter or the default emissions intensity value.
-
Production-adjusted baselines—determined based on actual production levels. A production adjusted baseline can either be a fixed baseline based on the highest year of production during the calculated or benchmark baseline period, or annually adjusting based on actual production for each year.
- Benchmark baselines—based on benchmark emissions intensities (that is, the best, least emissions intensive standard for production) and an independently audited forecast of production. A landfill-benchmark baseline will be based on a benchmark capture efficiency rate for non-legacy emissions.
Both calculated baselines and benchmark baselines are determined using forecasts of production, and can be replaced with a
production-adjusted baseline that reflects actual production from the facility.
A facility must exceed the 100,000 t CO2-e threshold to be covered by the safeguard mechanism. A baseline cannot be set below this level.
If a facility does not have one of the four types of baselines then a default emissions baseline of 100,000 tonnes of carbon dioxide equivalent (tCO2-e) will apply.
Note that on the expiry of a calculated baseline, the default emissions baseline of 100,000 tCO2-e will apply unless another baseline is approved. A facility will no longer revert to its reported baseline.
In some circumstances a facility covered by the safeguard mechanism may apply for a
baseline variation.
A summary of all types of emissions baselines
|
Baseline |
Criteria |
Determined by |
Duration |
Earliest start |
|---|
|
Default | Designated large facility with no other type of baseline | Safeguard Rule | Ongoing unless replaced by another baseline | 1 July 2016 |
|
Reported | NGER facilities with five years of data (2009–10 to 2013–14) | Based on historic high point |
Cease on 1 July 2021 | 1 July 2016 |
|
Calculated | - Transitional (from 1 July 2018)
- New facilities
- Inherent emissions variability
| Upon application using independent audit approach | Generally three years | 1 July 2016 |
|
Sectoral | Grid connected electricity generators | Safeguard Rule | Until breached | 1 July 2016 |
|
Production-adjusted | Existing or expired calculated or benchmark baseline (not required if applying for an annually adjusting baseline using default emissions intensity values) | Upon application using actual production | Ongoing unless replaced by another baseline | 1 July 2018 |
|
Benchmark | New or significantly expanded facilities from 2020 | Best-practice | Generally three years | 1 July 2021 |
|
Landfill-benchmark | Landfill facilities that exceed coverage threshold | Upon application using landfill baseline emissions formula | Ongoing | 1 July 2020 |