The Safeguard Mechanism is a legislative tool under the National Greenhouse and Energy Reporting Act 2007, introduced to ensure Australia’s largest emitters contribute proportionally to national climate targets. It applies to facilities emitting more than 100,000 tonnes CO₂-e annually, requiring them to keep net emissions below set facility-specific baselines, which decline over time to align with Australia’s net-zero by 2050 commitment. This mechanism supports broader frameworks like the Emissions Reduction Fund, and is designed to complement, not replace, voluntary decarbonisation efforts.
Key points
- Covers Scope 1 (direct) emissions only
- Applies to ~219 industrial facilities (~28% of national emissions as of FY2022–23)
- Enforces emissions constraints through regulatory compliance and credit trading
References & sources
Primary regulatory documents and authoritative references underpinning this answer.