We have taken compliance action against Fitzroy (CQ) Pty Ltd due to an excess emissions situation under the Safeguard Mechanism.

Our 2024–25 compliance and enforcement priorities highlighted that we are focusing compliance activities on safeguard facilities who fail to take action to manage their excess emissions.

Fitzroy is the responsible emitter for the Ironbark No. 1 and Carborough Downs Coal Mine facilities that are covered by the Safeguard Mechanism.

Under the National Greenhouse and Energy Reporting Act 2007, Fitzroy was required to ensure that on 1 April 2025 an excess emissions situation did not exist for these facilities for their respective monitoring periods ending on 30 June 2024. As the combined excess emissions number for these facilities was 583,079 tonnes of carbon dioxide equivalent on 1 April 2025, Fitzroy failed to comply with this requirement.

Fitzroy has represented to the Clean Energy Regulator that in its most recent financial year (which ended on 31 December 2024) it made a loss in excess of $427 million. It has further represented that it does not have the financial capacity to, immediately, purchase and surrender 583,079 prescribed carbon units required to comply with its obligations under the NGER Act. Prescribed carbon units are Australian carbon credit units (ACCUs) or Safeguard Mechanism credit units (SMCs).

Fitzroy has been proactive and cooperative in their approach to compliance.

After consideration of the circumstances, and consistent with our compliance policy, we have accepted an enforceable undertaking offered by Fitzroy to address the non-compliance.

The enforceable undertaking commits Fitzroy to:

  • surrender sufficient prescribed carbon units to become compliant with the NGER Act
  • start 3 feasibility studies to investigate carbon abatement opportunities at the 2 facilities
  • take all steps needed to ensure that neither facility is in an excess emissions situation for the 2024–2025 financial year on 1 April 2026.

Enforceable undertakings are voluntary, written statements from a scheme participant that they will do, or refrain from doing, specified actions to resolve non-compliance or improve compliance with the legislation administered by us. Enforceable undertakings are designed to secure effective and efficient remedies to address non-compliance without the need for court proceedings, and to provide non-adversarial and constructive solutions to compliance issues. In instances where an enforceable undertaking is not in place, we may apply to a court to take enforcement action under the NGER Act. If an undertaking is in place but not complied with, we may apply to a court to have the terms of the undertaking enforced or take other enforcement action under the NGER Act.

We publish all enforceable undertakings.

Further information

We administer the NGER Act, which establishes a single, national framework for reporting and disseminating company information about greenhouse gas emissions, energy production, and energy consumption.

The Safeguard Mechanism applies to facilities that emit more than 100,000 tonnes of carbon dioxide equivalent (tCO2-e) covered emissions a year. We set baselines for safeguard facilities. Each year, a safeguard facility’s reported covered emissions are compared to the facility’s baseline for that monitoring period.

The Safeguard Mechanism requires facilities to keep their net emissions at or below their baseline. If a facility’s net emissions are above its baseline, they need to manage any excess emissions. Safeguard facilities can surrender ACCUs or SMCs to reduce their net emissions below their baselines.

Managing excess emissions is critical to the effective functioning of the Safeguard Mechanism and failure to do this by the deadline will result in compliance or enforcement action.