The Safeguard Mechanism

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The Safeguard Mechanism

What these requirements mean for your business

The safeguard mechanism forms part of the Australian Government’s Emissions Reduction Fund (ERF) and seeks to impose limits on large greenhouse gas emitting facilities to ensure that net emissions are kept below a determined baseline.

The safeguard mechanism is set to commence on 1 July 2016. It will be administered by the Clean Energy Regulator through the existing National Greenhouse and Energy Reporting (NGER) scheme.

Facilities with scope 1 covered emissions greater than 100,000 tCO2-e will trigger the coverage threshold under the safeguard mechanism. Facilities covered by the safeguard mechanism will be required to keep net scope 1 emissions (i.e. direct emissions less eligible offsets) at or below determined facility baselines.

Organisations should review their facilities and understand their emissions profiles going forward such that planning can begin for managing obligations under the safeguard mechanism.

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The Safeguard Mechanism
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