An emissions intensity determination (EID) gives an existing Safeguard facility a gradual transition to the industry-average default emissions intensity. Its baseline is calculated from a blend of its own facility-specific emissions intensity and the default value, with the default taking a larger share each year.
Key points
- Blends facility-specific and default emissions intensity
- Moves fully to the default by 2029-30
- Only existing facilities can apply
- Uses 2017-18 to 2021-22 data
- Due 31 October with an audit report
The transition
- 2023-24: 90% facility-specific, 10% default
- 2024-25: 80% and 20%
- 2025-26: 70% and 30%
- 2026-27: 60% and 40%
- 2027-28: 40% and 60%
- 2028-29: 20% and 80%
- 2029-30: default only
Who can apply
Existing facilities, meaning those in commercial production before 1 July 2023, that expect covered emissions above 100,000 t CO2-e. New facilities, landfills and grid-connected electricity generators cannot apply.
What the application needs
The facility-specific emissions intensity is calculated from production and emissions data for the five financial years from 2017-18 to 2021-22. The application must include an audit report covering reasonable and limited assurance matters, and the CER publishes an emissions intensity audit report template for auditors. It is due by the first 31 October after the end of the financial year concerned.
Default and best practice values
Default emissions intensities reflect the industry average of comparable Australian facilities. Best practice values reflect international best practice adjusted for Australia, and apply to new facilities where specified.
How it fits into the baseline
A Safeguard baseline is calculated by multiplying production quantity by emissions intensity and by the baseline decline rate, and adding the results across each production variable. An EID changes only the emissions intensity part of that calculation. Production variables are listed in Schedule 1 of the Safeguard Rule.
Minimum baseline
If a calculated baseline falls below 100,000 t CO2-e, it is set at 100,000 t CO2-e. This floor does not apply when calculating SMC entitlements.
Publication
The CER publishes emissions intensity determination data each April, alongside baselines and emissions data for the previous financial year.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.