Safeguard Mechanism: Additional Prescribed Production Variables

Closed 28 Aug 2020

Opened 3 Aug 2020

Overview

The Safeguard Mechanism is part of the National Greenhouse and Energy Reporting Act 2007. Together with the emissions reporting obligations under the Act, the Safeguard Mechanism provides a framework for Australia’s largest emitters to measure, report and manage their emissions. It places legislated emissions limits (called baselines) on facilities that emit more than 100,000 tonnes of carbon dioxide equivalent each year.

We ammended the Safeguard Mechanism in March 2019 to make it simpler and fairer. Calculated and production adjusted baseline applications were simplified by giving businesses the option to use prescribed production variables and default emissions intensity values (referred to as ‘default values’). In March 2020, the majority of default values were included in Schedules 2 and 3 of the Safeguard Rule. We have worked closely with industry to develop additional default values for a number of Safeguard-covered sectors. 

Why We Are Consulting

The National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Additional Prescribed Production Variables) Rule 2020,  would:

  • set default values for the majority of the remaining Safeguard-covered sectors
  • include corresponding default emissions intensity values for prescribed production variables that were set in the Safeguard Rule in March 2020
  • update relevant default emissions intensity values to the latest global warming potentials from the Intergovernmental Panel on Climate Change’s Fifth Assessment Report (which apply under the National Greenhouse and Energy Reporting Scheme from the 2020-21 year)

Exposure draft

We invite submissions on the Exposure Draft package, which includes 3 documents:

  1. Exposure draft of the National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Additional Prescribed Production Variables) Rule 2020 [1MB PDF] [141KB DOCX]
  2. Tranche 2 additions to the Safeguard Mechanism: prescribed production variables and default emissions intensities document [1.2MB PDF] [109KB DOCX]
  3. Explanatory document [690KB PDF] [109KBDOCX]

What Happens Next

The survey has now closed. We may publish non-confidential submissions.

Audiences

  • Climate Change

Interests

  • Climate Change
  • Safeguard Mechanism