Consultation on Safeguard Mechanism reform

The Department of Climate Change, Energy, Environment and Water (DCCEEW) is consulting on options to reform the Safeguard Mechanism to help industry reduce emissions in line with Australia’s climate targets.

The Safeguard Mechanism requires Australia’s largest greenhouse gas emitters to keep their net emissions below an emissions limit (a baseline). The Australian Government proposes:

  • Gradually reducing baselines to help Australia reach net zero emissions by 2050.
  • Introducing credits for facilities that emit less than their baseline.
  • Providing tailored treatment to emissions-intensive, trade-exposed facilities so businesses are not disadvantaged compared to international competitors, and emissions do not increase overseas.

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