Overview
The Australian Government is consulting on a proposed approach to reforming the Safeguard Mechanism. The reforms will help industry reduce emissions in line with Australia’s climate targets.
The position paper outlines the proposed approach on:
the Safeguard Mechanism’s share of the national emissions reduction target
setting baselines for existing and new facilities, including the rate of decline
arrangements for issuing and using Safeguard Mechanism Credits
access to flexible compliance arrangements. These include access to credits, offsets, banking and borrowing arrangements, multi-year monitoring periods and a cost containment measure
tailored treatment of emissions-intensive, trade-exposed facilities
Feedback is also sought on the following draft subordinate legislation:
National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Reforms) Rule 2023
Carbon Credits (Carbon Farming Initiative) Amendment (No. 2) Rules 2023
Australian National Registry of Emissions Units Rules 2023
Safeguard Mechanism Legislation Amendment (2023 Measures No 1) Regulations 2023
We hosted a public online information session on 19 January to discuss the proposed design. A recording of the session is available on our website.
