The Australian Government is consulting on the proposed design for reforms to the Safeguard Mechanism and the design of the Powering the Regions Fund (PRF) to reduce industrial emissions in line with Australia’s climate targets.
Safeguard Mechanism reform
This is the third consultation on reforms to the Safeguard Mechanism. You can review our previous consultation on the initial consultation paper and exposure draft of legislation, along with the submissions.
The Safeguard Mechanism position paper outlines the Australian Government’s proposed approach on:
- the Safeguard Mechanism’s share of the national emissions reduction target
- setting baselines for existing and new facilities, including the rate of decline
- arrangements for issuing and using Safeguard Mechanism Credits
- access to flexible compliance arrangements, including access to credits, offsets, banking and borrowing arrangements, multi-year monitoring periods and cost containment measures
- tailored treatment of emissions-intensive, trade-exposed facilities.
We are also consulting on the following subordinate legislation:
- National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Reforms) Rule 2023
- Carbon Credits (Carbon Farming Initiative) Amendment (No. 1) Rules 2023
- Australian National Registry of Emissions Units Rules 2023.
Read more about the proposed Safeguard Mechanism changes and submit a response on our consultation hub.
Powering the Regions Fund (PRF)
The Australian Government will support the reduction of industrial emissions through the $1.9 billion Powering the Regions Fund (PRF).
To support the Safeguard Mechanism, the Australian Government will set aside $600 million from the PRF to establish the’ Safeguard Transformation Stream’ to help industry reduce emissions.
Projects could include:
- energy efficiency upgrades
- shift to lower carbon processes
- switch fuels to electrification
- hydrogen and biofuels
- carbon capture, use and storage.
Have your say on the proposed design of the Powering the Regions Fund Safeguard Transformation Stream by submitting a response on our consultation hub.
Submissions close 5:00pm AEDT on Friday 3 February 2023 for the PRF and 5:00pm AEDT 24 February 2023 for Safeguard Mechanism.
Read more
Media release: Next steps to safeguard Australian industry and regions in net zero global economy
