The reformed Safeguard Mechanism commenced on 1 July 2023. It applies to Safeguard facilities reporting for financial years on or after 1 July 2023. Under the reforms, existing facilities may apply for an emissions-intensity determination (EID).

EIDs set the facility-specific emissions-intensity (FSEI) for production variables at an existing facility. The financial years from 2023-24 to 2029-30 will use these FSEI values for annual baseline emissions number calculations.

The Clean Energy Regulator (CER) has published a detailed EID guideline to help prepare an EID application. Responsible emitters can apply using the EID application form in Online Services.

Each EID application must come with an independent audit report. We have published an audit report template on the Audit determination handbook page.

EID eligibility and deadlines

To be eligible for an EID, a facility must have had commercial production in any financial year from 2017-18 to 2022-23.

For an EID for the 2023-24 financial year, the responsible emitter must apply by 30 April 2024. If a facility doesn’t apply for an EID, best-practice emissions-intensity values will be used.

A responsible emitter can apply for an EID for a future financial year if they are below the Safeguard threshold in the 2023-24 financial year but expect to exceed it.

For EIDs commencing in a future financial year, the responsible emitter must apply by 31 October after the end of that financial year. For example 31 October 2025 for a determination commencing from the 2024-25 financial year.

Facilities which began commercial production on or after 1 July 2023 (‘new’ facilities) and landfill facilities cannot apply for and EID. This is because they have separate baseline setting arrangements.

Production variable review update

The Department of Climate Change, Energy, the Environment and Water has completed a review of production variables. This was to ensure a comprehensive set of production variables for the reformed Safeguard Mechanism.

Following amendments to the Safeguard Rule on 29 September 2023, an EID application can use the following production variables:

  • Run-of-mine coal
  • Copper anode
  • Cement produced from clinker at a facility
  • Run-of-mine iron ore
  • Natural gas throughput
  • Lithium hydroxide.

A further production variable review is set for late 2023. This includes the following production variables from Schedule 1 of the Safeguard Rule:

  • Bulk rail freight on a non-dedicated line
  • Bulk road freight
  • Steel manufacturing production variables
  • Ethene (ethylene)
  • Polyethylene
  • Petroleum refining feedstocks.

Due to potential changes to these production variables definitions, you will not be able to apply for an EID until the review is complete. You will also not be able to apply for an EID if the production variable relevant to your facility is yet to be made.

We will update the EID form once new or revised production variables are published in the Safeguard Rule. For more information on the review, including scope and timing see the Department’s Consultation Hub or contact Safeguard.Mechanism@dcceew.gov.au.

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