Overview
We are consulting on exposure draft legislation needed to enable reforms to the Safeguard Mechanism to help industry reduce emissions in line with Australia’s climate targets. We have recently completed consultation on options to reform the Safeguard Mechanism.
The Safeguard Mechanism is legislated through the National Greenhouse and Energy Reporting Act 2007. The main elements of the reformed scheme can be implemented through subordinate legislation. This is consistent with how the Safeguard Mechanism is currently legislated.
However, some changes to primary legislation will be needed to create the architecture for the reformed scheme. This consultation seeks feedback on the draft Safeguard Mechanism Reforms (Crediting) Amendment Bill 2022.
The draft Safeguard Mechanism Reforms (Crediting) Amendment Bill 2022 allows for the creation of a new unit type (Safeguard Mechanism Credits) that will allow for crediting and trading under the reforms. It also provides for the making of rules relating to interactions between the Safeguard Mechanism and the Emissions Reduction Fund.
We are also seeking feedback on the draft Carbon Credits (Carbon Farming Initiative) Amendment (Safeguard Facility Eligibility Requirements) Rules 2022 which clarifies the requirements for eligible offsets projects relating to covered emissions at Safeguard facilities.
Email Safeguard.Mechanism@industry.gov.au if you would like information about participating further in the consultation.
Consultation documents
We invite submissions on the draft Safeguard Mechanism Reforms (Crediting) Amendment Bill 2022 and draft Carbon Credits (Carbon Farming Initiative) Amendment (Safeguard Facility Eligibility Requirements) Rules 2022:
Draft Safeguard Mechanism Credits Amendment Bill 2022 [489KB PDF] [144KB DOCX]
Draft Carbon Credits (Carbon Farming Initiative) Amendment (Safeguard Facility Eligibility Requirements) Rules 2022 [258KB PDF] [98KB DOCX]
If you have difficulty accessing these documents, please contact us.
