NGER and the Safeguard Mechanism run on the same data. The Safeguard Mechanism sets emissions limits, called baselines, for Australia’s largest industrial facilities, and it measures them using the emissions those facilities report under NGER. The Clean Energy Regulator states that all Safeguard facilities must report under the NGER Scheme. It also states that the mechanism requires these facilities to reduce their emissions in line with Australia’s targets of 43% below 2005 levels by 2030 and net zero by 2050, and that baselines decline each year.
Key points
- The Safeguard Mechanism uses emissions reported under NGER
- It covers facilities with covered emissions above 100,000 t CO2-e a year
- Covered emissions are Scope 1 only, less excluded kinds
- Responsible emitters that are not controlling corporations register under section 15B
- Safeguard production data is lodged with the NGER report
Which facilities are covered
A facility is covered when its covered emissions exceed 100,000 t CO2-e in a financial year. Covered emissions are the facility’s Scope 1 emissions, less the kinds excluded by the Safeguard Rule, such as legacy emissions from landfill. Scope 2 emissions do not count.
Who is responsible
The person with operational control of a Safeguard facility is its responsible emitter. A responsible emitter that is not also a controlling corporation must register under section 15B of the NGER Act, even if its controlling corporation is already registered. Registration is due by 31 August after the first financial year the facility is covered.
One reporting cycle
Safeguard production data is lodged with the NGER report by the 31 October deadline. It measures output against the production variables used to set each facility’s baseline, which is why the two are lodged together. The Regulator then compares each facility’s covered emissions with its baseline. A facility above its baseline must manage its excess emissions, for example by surrendering Australian carbon credit units or Safeguard Mechanism credit units, by the compliance deadline. Reporters for facilities emitting more than 1 million t CO2-e also need an audit report. The Regulator’s key dates page for responsible emitters sets out each step of the year.
Why NGER data quality matters
Because Safeguard obligations are calculated from NGER data, an estimation error in the NGER report flows straight into a facility’s position against its baseline and the units it may need to surrender.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.