What is the Safeguard Mechanism cost containment measure?

The price

The price was introduced at $75 per ACCU for 2023-24 and is indexed each financial year to the consumer price index plus 2%. For 2026-27 it is $87.72.

The conditions

• Only facilities that have exceeded their baseline can buy.
• The buyer must confirm it cannot obtain ACCUs in the market at a lower price.
• The ACCUs must be surrendered immediately to clear the excess. They cannot be traded or held.

When to apply

Applications open from mid-February to early March each year. For 2026-27 the window is 16 February to 4 March 2027.

How the purchase works

1. Confirm the facility has exceeded its baseline for the monitoring period.
2. Check that ACCUs cannot be bought for less in the market.
3. Apply to the CER during the annual window.
4. Surrender the purchased ACCUs straight away against the facility’s excess.

A worked illustration

A facility with an excess of 50,000 t CO2-e for 2026-27 that bought all its units under the measure would pay 50,000 × $87.72, or $4,386,000. The figures are illustrative only.

How the price moves

Because the price is indexed each year to the consumer price index plus 2%, it rises faster than inflation, by about 2% a year in real terms.

What it does not do

The measure does not create a holding of units. ACCUs bought this way cannot be traded, banked for a later year or used for another facility’s excess.

Checking market prices

The CER’s quarterly carbon market reports and ACCU project and contract register provide the market context needed to confirm that cheaper ACCUs are not available.