The Department of Climate Change, Energy, the Environment and Water is  consulting on options to reform the Safeguard Mechanism to help industry reduce emissions in line with Australia’s climate targets. This will strengthen Australia’s competitiveness in a decarbonising global economy.

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 (EITE) facilities so businesses are not disadvantaged compared to international competitors and emissions do not increase overseas.