Safeguard Mechanism – Important updates

27 February 2024

Emissions intensity-determination (EID) guidance updates

We have updated the emissions-intensity determination (EID) guideline and audit template.

Updates to the EID guideline include clarification on audit requirements relating to facility level historical covered emissions and use of previous audit reports.

The EID audit template has been updated to include key risk areas we expect auditors will consider as part of their EID application audit.

Late EID applications

The CER expects all responsible emitters to endeavour to meet the application deadline of 30 April 2024 for EIDs commencing from 2023-24. This is the legislated deadline for this application.

If you believe that you may be unable to meet this deadline, contact the CER as soon as possible.

The Safeguard Mechanism legislation gives the CER discretion to accept an EID application submitted after the deadline.

The CER will consider granting an extension of up to 45 calendar days after the deadline of 30 April 2024, if the applicant can demonstrate that they have taken reasonable steps to progress their application and have engaged an auditor, but the required audit report will not be finalised by the deadline.

The CER considers that an extension of up to 45 calendar days is sufficient time for an application and audit to be completed. If an extension is granted, the CER expects that the submitted application will be complete, supported by additional evidence where needed and accompanied by a finalised audit report.

It should be noted that EID applications will be assessed based upon the date they are received by the CER. Responsible emitters that are seeking early assurance about the result of their EID applications are encouraged to provide complete applications by or before the 30 April deadline.

To seek an extension

The applicant must nominate the length of extension that is required, from 1 to 45 calendar days, and provide information to support the extension request such as a statement covering:

factors that have impacted the applicant’s ability to source the required data and complete any associated calculations
difficulties in securing relevant external advice, including auditors
any other factors impacting the application that are outside of the control of the applicant
why the specified extension will allow a complete, audited application to be made.

Further, the applicant must provide the CER with evidence that they have engaged an auditor for the emissions-intensity determination application. Evidence can be a letter from the auditor stating:

name of the responsible emitter and facility
date engaged to complete the EID audit
that they cannot finalise the audit report by the 30 April deadline.

Alternatively, other evidence can be provided confirming the applicant has engaged an auditor for the application.

The extension request should be emailed to cer-safeguardbaselines@cer.gov.au by the nominated contact person for the applicant.

An extension request must be submitted by the 30 April 2024 EID application deadline.

On receipt of an EID application extension request, the CER will review the request and notify the contact person of the decision within 5 business days.

New application forms now available

Under the reformed Safeguard Mechanism, facilities with excess emissions in the 2023-24 financial year may be eligible to:

become a trade-exposed baseline-adjusted (TEBA) facility
borrow baseline from the following financial year.

Application forms to become a TEBA facility or to borrow baseline will be available in on Thursday 29 February 2024.

Guidance documents to help you complete your application will be available on our Forms and guidance page soon.

Application deadlines

You must submit applications for the 2023-24 financial year by:

30 April 2024 for all EID applications
31 October 2024 for all TEBA facility applications
28 February 2025 for all baseline borrowing applications.

More information

For more information visit Managing excess emissions for financial years commencing on or after 1 July 2023.