Emissions baselines define the maximum allowable emissions for a facility each year under the Safeguard Mechanism. They are calculated using the formula:
Baseline = Production Volume × Emissions Intensity Benchmark.
There are three key types of baselines:
- Production-adjusted: recalculated annually based on a facility’s actual output.
- Fixed: used for stable operations where production is consistent.
- International Best Practice (IBP): mandatory for new entrants from 1 July 2023.
By linking emissions allowances to activity levels, the framework ensures proportionality and encourages improved emissions performance over time. Accurate baselines are fundamental to fair regulation, emissions integrity, and enabling industrial facilities to decarbonise in line with operational realities.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.