Safeguard Mechanism Rule amendment to extend the 2018-19 baseline application deadline and facilitate access to default values

Closed 28 Aug 2019

Opened 28 Aug 2019

Overview

The climate change function transferred to our department from the Department of the Environment and Energy on 1 February 2020.

The Safeguard Mechanism provides a framework for Australia's largest emitters to monitor, manage and report their emissions. Net emissions must be kept below facility-specific limits called baselines.

The Government is proposing to make two amendments to the Safeguard Mechanism that would:

  1. extend the 2018-19 baseline application deadline by just under six months, from 31 October 2019 to 15 April 2020 for facilities on a Multi-Year Monitoring Period
  2. allow facilities to use the transitional calculated baseline criteria a second time from the year commencing 1 July 2019 to adopt newly-established Government-determined prescribed production variables

The first proposed amendment is intended to provide business with sufficient time to consider the first tranche of proposed prescribed production variables and default emissions intensity values, which are intended to be available for use in baseline applications for the 2018-19 year. Additional prescribed production variables and default emissions intensity values will be made in subsequent tranches, and are intended to be available for use in baseline applications that relate to the 2019-20 year.

The second proposed amendment is intended to remove barriers to adopting Government-determined prescribed production variables and default emissions intensity values where facilities apply for a calculated baseline ahead of the Government-determined defaults being made available. This will ensure facilities have access to baselines that adjust annually with production.

The proposed amendments are set out in full in the Explanatory Document.

The Government invited written submissions on the proposed amendments from all interested businesses and members of the community.

Audiences

  • Emissions Reduction Fund

Interests

  • Climate Change
  • Emissions Reduction Fund