A safeguard facility’s net emissions number for a monitoring period reflects the total covered emissions reported in its relevant National Greenhouse and Energy Reporting (NGER) Scheme report, subject to the following adjustments:
- Australian carbon credit units (ACCUs) and Safeguard Mechanism credit units (SMCs) surrendered to reduce the facility’s net emissions number for the monitoring period are subtracted from the net emissions number.
- ACCUs issued during the monitoring period that are attributable to avoidance of the facility’s covered emissions (attributable ACCUs) are added to the net emissions number. This is only if the responsible emitter is the project proponent for the ACCU Scheme project or has consented to another person carrying out the ACCU Scheme project.
- Attributable ACCUs ‘deemed surrendered’ by delivery under a carbon abatement contract are subtracted from the net emissions number.
Surrendering ACCUs and SMCs
Safeguard facilities can surrender ACCUs or SMCs to reduce their net emissions number and avoid an excess emissions situation.
Find out more about surrendering units to manage excess emissions.
Attributable ACCUs
Attributable ACCUs are those issued to an ACCU Scheme project that represents avoidance of a safeguard facility’s covered emissions. Only projects registered before 12 January 2023 may be issued with attributable ACCUs.
Attributable ACCUs can only be issued and are only counted towards the relevant safeguard facility’s net emissions number if the relevant safeguard facility’s responsible emitter either:
- is the project proponent for the ACCU Scheme project
- has consented to another person carrying out the ACCU Scheme project.
The net emissions number for a relevant safeguard facility’s monitoring period is increased by 1 tonne of carbon dioxide equivalent emissions (tCO2-e) for each attributable ACCU issued during that period. This is to prevent ‘double counting’ of emissions.
Double counting occurs when a safeguard facility receives 2 benefits for the same reduction of covered emissions:
- ACCUs
- a reduced net emissions number under the Safeguard Mechanism.
Whether ACCUs represent the abatement of the safeguard facility’s covered emissions is dependent on if:
- they are scope 1, 2 or 3 emissions
- they are non-legacy emissions
- the project involves more than one facility.
Scope 1, 2 and 3 emissions
Covered emissions under the Safeguard Mechanism do not include scope 2 and 3. Only ACCUs attributable to the reduction of scope 1 emissions will increase a safeguard facility’s net emissions number.
Non-legacy emissions at a landfill
Legacy emissions are emissions from waste deposited at a landfill before 1 July 2016.
Covered emissions under the Safeguard Mechanism do not include legacy emissions. Only ACCUs attributable to non-legacy emissions will increase a safeguard facility’s net emissions number.
Projects involving more than one facility
ACCU Scheme projects may involve more than one facility if, for example:
- the project is an aggregated project
- the project boundary encompasses more than one facility.
For projects involving more than one facility, ACCU issuances will be apportioned to the facility where, if not for the project, emissions would have been vented from.
We may seek further information from the ACCU Scheme project proponent or the relevant safeguard facility to ensure appropriate apportionment of ACCUs.
Deemed surrender of ACCUs delivered under a carbon abatement contract
Attributable ACCUs delivered to the Commonwealth under a carbon abatement contract are deemed to be surrendered and subtracted from a safeguard facility’s net emissions number.
This occurs if the relevant safeguard facility’s responsible emitter is the project proponent for the ACCU Scheme project or has consented to another person carrying out the ACCU Scheme project.
The contract must:
- have been formed before 30 March 2023
- refer to the particular project that resulted in the ACCU issuance.
The deemed surrender occurs regardless of whether the seller under the carbon abatement contract is the responsible emitter or another person.
Find out more about delivering ACCUs and receiving payment.