What is the Safeguard Mechanism?

The Safeguard Mechanism requires Australia’s highest greenhouse gas emitting facilities to reduce their emissions in line with Australia’s emission reduction targets of 43% below 2005 levels by 2030 and net zero by 2050.

Responsible emitters of facilities that exceed their baselines must manage any excess emissions. Responsible emitters of facilities that don't exceed their baselines may be eligible to receive Safeguard Mechanism credit units (SMCs).

Emissions reduction
Safeguard

Safeguard baselines

Learn about the different types of baselines under the Safeguard Mechanism and how they are calculated.
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Emissions reduction
Safeguard

Managing excess emissions

Find out how safeguard facilities can manage emissions above their baselines.
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Popular topics

Emissions reduction
Safeguard

Safeguard Mechanism credit units

Learn about how Safeguard Mechanism credit units (SMCs) incentivise safeguard facilities to reduce their emissions beyond their baselines.
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Safeguard

Safeguard net emissions

Find out more about how a safeguard facility’s net emissions number is determined.
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Key dates for responsible emitters

Responsible emitters for safeguard facilities must be aware of key reporting and application deadlines each financial year.
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Safeguard

Safeguard data

Learn about what we’re required to publish about safeguard facilities each financial year

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Who it covers

The Safeguard Mechanism applies to responsible emitters of facilities that emit more than 100,000 tonnes of carbon dioxide equivalent (tCO2-e) covered emissions a year. This includes:

  • mining
  • oil and gas production
  • manufacturing
  • transport
  • waste.

Covered emissions

Covered emissions are defined as scope 1 emissions, excluding emissions:

Latest annual statistics

Safeguard data from the 2023–24 financial year.

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136
million tonnes CO2-e covered emissions
7.1
million Australian carbon credit units (ACCUs) surrendered
1.4
million Safeguard Mechanism credit units (SMCs) surrendered

The reformed scheme

The Safeguard Mechanism was reformed in 2023. It will be reviewed by the Department of Climate Change, Energy, the Environment and Water in the 2026–27 financial year.

Learn about the Safeguard Mechanism before 1 July 2023.

Watch a recording of the Safeguard Mechanism forum held in September 2024, where our executive staff discuss the reforms and what they mean for business. You can also view the Safeguard Mechanism forum presentation slides [PDF 4.74 MB].

Safeguard and National Greenhouse and Energy Reporting

The Safeguard Mechanism leverages the National Greenhouse and Energy Reporting (NGER) Scheme to minimise additional reporting requirements.

All safeguard facilities must report under the NGER Scheme. Responsible emitters must apply for NGER registration by 31 August after meeting the safeguard threshold. This includes subsidiaries of a registered controlling corporation’s corporate group.

If a controlling corporation is also a responsible emitter, it does not need to register again.

Our role

We regulate the Safeguard Mechanism by:

  • administering baselines
  • ensuring facilities manage their emissions
  • issuing SMCs
  • publishing safeguard data.

The Department of Climate Change, Energy, the Environment and Water oversees the policy of the Safeguard Mechanism. Read the policy intent on the department’s website.

Safeguard forms

Complete your safeguard application forms in Online Services.

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