Safeguard Crediting Mechanism for large greenhouse gas emitters

Source: International Energy Agency
Last updated: 10 May 2023

In 2021, the Australian Government committed $279.9 million over 10 years to establish a ‘below-baseline crediting mechanism’ for facilities covered by the Safeguard Mechanism (recommended by the Expert Panel examining additional sources of low cost abatement - ‘the King Review’). The Safeguard Mechanism requires Australia's largest greenhouse gas emitters to keep their net emissions below an emissions limit (a baseline). The Safeguard Mechanism builds on the National Greenhouse and Energy Reporting scheme's reporting and record keeping requirements.

The crediting mechanism will reward facilities covered by the Safeguard Mechanism that reduce their emissions intensity by undertaking transformative abatement projects. This could help realise abatement opportunities that are not being accessed by the Emissions Reduction Fund and help drive the uptake of new low-emissions technologies in the industrial sector. The Government will consult on the design of the crediting mechanism.

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