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:

The following information has been published in line with the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 prior to commencement of the new arrangements.

New data publishing requirements will apply from 1 July 2023. Refer to safeguard facility reported emissions data for more information.

The safeguard mechanism commenced on 1 July 2016 and applies to all facilities that emit more than 100,000 tonnes carbon dioxide equivalent (CO2-e) emissions in a financial year (the reporting year). Emissions from covered facilities are reported through the National Greenhouse and Energy Reporting scheme, by 31 October following each financial year.

Responsible emitters for covered facilities must ensure that they are not in an excess emissions situation on or after 1 March following each reporting year, and have a number of options available to manage any excess emissions.

The Clean Energy Regulator is required to publish information about all covered facilities for each 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 Australian carbon credit units (ACCUs) surrendered.

Under the safeguard mechanism, the Clean Energy Regulator is also required to publish emissions for grid-connected electricity generator facilities. See more information about electricity sector emissions and generation data.

2016–17 Reporting year summary

DescriptionTotal
Facilities covered under the safeguard mechanism203
Combined covered emissions (million tonnes CO2-e)131.3
Multi-year monitoring periods6
Baseline variations2
ACCUs surrendered448,097

Notes about this publication

Baseline number:

  • A facility may have been issued multiple baselines under the safeguard mechanism, however only one baseline applies in relation to the 2016–17 reporting year.
  • Baselines and other information that are withheld may be pending the submission of an application, or a decision under, section 25 of the National Greenhouse and Energy Reporting Act 2007 (NGER Act).

Multi-year monitoring period determinations:

  • Under section 65 of the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 (Safeguard Rule), responsible emitters may apply to the Clean Energy Regulator for a multi-year monitoring period to be declared in relation to a facility.
  • Where a multi-year monitoring period has been granted, the baseline emissions number for the facility is calculated as a single baseline number that applies across the entire multi-year monitoring period. At the end of the period, aggregate covered emissions for the two or three year period (plus or minus any Australian carbon credit units issued or surrendered) are compared against this baseline number to determine whether the facility is in an excess emissions situation.

Baseline variation for an improvement in emissions intensity:

  • Under section 46 of the Safeguard Rule, responsible emitters may apply to the Clean Energy Regulator for a facility’s baseline to be varied, where they can demonstrate that the emissions intensity at a facility has improved.
  • Provided the relevant tests are met, the facility’s baseline is varied to the level of covered emissions from the facility, for a particular financial year.

ACCUs issued at a safeguard facility:

  • To avoid counting offsets twice, a facility that is covered by the safeguard mechanism and also generates ACCUs under the Emissions Reduction Fund will have any ACCUs that are issued during a financial year, added to its net emissions number.
  • This means that an affected safeguard facility’s net emissions number will be the total amount of covered emissions for the year, plus the total amount of ACCUs issued, minus any ACCUs surrendered. A new ‘Australian carbon credit units issued’ column has been added to the 2016–17 safeguard facility data table to flag those facilities where ACCUs have been added to a net emissions number.

The Clean Energy Regulator takes all reasonable efforts to ensure the information published on its website is accurate at the time of publication.

2016–17 Safeguard facilities data

The table below is a list of facilities covered under the safeguard mechanism for the 2016–17 reporting year.