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Emissions Reduction Fund Safeguard Mechanism

The National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Extended Transition) Rule 2020 commenced on 12 May 2020.

This amendment aims to reduce the administrative load on Safeguard facilities to help them manage the impacts of the COVID-19 pandemic. It does this by extending the 2018-19 to 2019-20 transition period, giving Safeguard facilities an additional year to apply for a transitional calculated baseline. Specifically, the amendments:

  • give facilities the option to remain on reported baselines in 2019-20 and 2020-21 (reported baselines previously expired at the end of 2019-20);
  • allow facilities to use site-specific values (production variables and emissions intensity values) for calculated baselines that commence in 2020-21;
  • delay the application of benchmark baselines for new facilities by one year, until 1 July 2021;
  • allow facilities to apply to the Clean Energy Regulator to extend multi-year monitoring periods that end in 2019-20 by one year; and
  • allow facilities with calculated baselines that expired on 30 June 2019 to continue to be subject to those baselines for the 2019-20 year.

The Safeguard Mechanism commenced on 1 July 2016. Together with the National Greenhouse and Energy Reporting Act 2007, the Safeguard Mechanism provides a framework for Australia's largest emitters to measure, report and manage their emissions.

The details of the Safeguard Mechanism are set out in the following legislative instruments:

Fact sheets

Fact sheets explaining how the Safeguard Mechanism works and applies to businesses.

Previous consultation

Information on previous public consultation processes on Safeguard Mechanism policy and legislative instruments.

Minister's statement

Provisions in the Carbon Farming Initiative Amendment Act 2014 (Subitem 61(2) of Schedule 2) require the Minister to cause a statement to be published on the Department's website that explains how the safeguard rule gives effect to the second object of the National Greenhouse and Energy Reporting Act 2007. This statement is available below:

Statement on Making the Safeguard Rule (PDF - 23.89 KB)
Statement on Making the Safeguard Rule (DOCX - 75.83 KB)