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:
- For information about Safeguard facility obligations and reporting requirements for the 2022-23 financial year see The Safeguard Mechanism for financial years ending before 1 July 2023.
- For information about Safeguard facility obligations and reporting requirements for the 2023-24 financial year and later financial years see The Safeguard Mechanism for 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.
2017–18 Reporting year summary
Description | Total |
Facilities covered under the safeguard mechanism | 211 |
Combined covered emissions (million tonnes CO2-e) | 138.4 |
Multi-year monitoring periods in place | 17 |
Baseline variations | 2 |
ACCUs surrendered | 260,428 |
Notes about this publication
Baseline number:
- Where a facility has both a reported baseline and a calculated baseline, the calculated baseline will be ‘in force’, until such time as it expires.
- If a facility has had more than one calculated baseline determination made, the most recently made one will be the baseline that is ‘in force’.
- Where a facility has had its baseline temporarily varied due to improved emissions intensity, the variation will be ‘in force’, for that particular financial year.
- Baselines 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 for the facility is calculated by dividing the total of the baselines that would apply to the facility in each year of the multi-year monitoring period, by the total number of days in the multi-year monitoring period. This single baseline applies to the two or three year period. In the annual published safeguard data, the aggregate baseline is displayed in the multi-year baseline number (cumulative) column.
- While no baseline number is published in the annual ‘baseline number’ column, all baseline determinations made in relation to the facility will appear on the baseline determination table.
- For facilities that have a multi-year monitoring period in place, the net emissions number is the total covered emissions from the facility over the entire two or three period, plus or minus any Australian carbon credit units issued or surrendered over the period.
- This number is published in the multi-year net emissions number (cumulative) column.
- At the end of the monitoring period, the net emissions number is compared against the baseline number to determine whether the facility is in an excess emissions situation.
- While no number is published in the annual net emissions number column, the amount of covered emissions for the facility, for that year, will be published in the reported covered emissions column.
- Prior to the end of a multi-year monitoring period, the number in the multi-year net emissions number (cumulative) column can be used to follow a facility’s progress across the multi-year monitoring period, but cannot be used to determine is the facility has exceeded its baseline. For example:
- If in the second year of a three year multi-year period, cumulative net emissions will be the sum of the first two year’s net emissions. The facility will still have another year’s emissions to be added to see whether the facility meets its obligations.
- The start and end dates of a multi-year monitoring period are also published.
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.
2017–18 Safeguard facilities data
The table below is a list of facilities covered under the safeguard mechanism for the 2017–18 reporting year.