Safeguard net emissions

A safeguard facility’s net emissions number for a monitoring period is calculated as follows:

1. Start with the amount of total covered emissions in the relevant National Greenhouse and Energy Reporting (NGER) Scheme report.
2. Subtract the number of all Australian carbon credit units (ACCUs) and Safeguard Mechanism credit units (SMCs) that were surrendered to reduce the facility’s net emissions number for the monitoring period.
3. Add any ACCUs issued during the monitoring period that are attributable to abatement of the facility’s covered emissions (attributable ACCUs).
4. Subtract any attributable ACCUs deemed to be surrendered by delivery under an eligible carbon abatement contract. 

Monitoring periods

Baselines and net emissions for a facility are calculated for each monitoring period – this is typically a financial year. There are some exceptions:

• Where a multi-year monitoring period (MYMP) applies, its full duration is one monitoring period.
• Where more than one responsible emitter has operational control of a facility during a financial year, each responsible emitter will have a monitoring period for the timeframe that they had control.

Surrendering ACCUs and SMCs

Responsible emitters of safeguard facilities can surrender ACCUs or SMCs to reduce their facility’s net emissions number and avoid an excess emissions situation. 

Find out more about surrendering units to manage excess emissions.  

Attributable ACCUs

Attributable ACCUs represent abatement of a safeguard facility’s covered emissions. These can only be issued and counted towards a safeguard facility’s net emissions number if the 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 safeguard facility’s net emissions number for a monitoring period is increased by one tonne of carbon dioxide equivalent emissions (t CO₂-e) for each attributable ACCU issued during that monitoring period. This is to prevent ‘double counting’ of emissions reductions.

Double counting would occur if 2 benefits (ACCUs and a reduced net emissions number under the Safeguard Mechanism) were given for the same reduction of covered emissions.

See the ACCU Scheme eligibility requirements for more information about new projects abating emissions from safeguard facilities. 

Projects involving multiple facilities

An ACCU Scheme project may involve more than one facility if, for example: 

• it is an aggregated project
• the project boundary encompasses more than one facility. 

For these projects, attributable ACCUs will be apportioned to the facility where covered emissions would have been emitted from, if not for the project. 

We may seek further information from the ACCU Scheme project proponent or the relevant safeguard facility to make sure ACCUs are appropriately apportioned.

Deemed surrender of ACCUs

Attributable ACCUs delivered to the Commonwealth under a carbon abatement contract are deemed to be surrendered. As a result, these are subtracted from a safeguard facility’s net emissions number. 

This occurs if the 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.