The Safeguard Mechanism is the Australian Government’s policy for reducing greenhouse gas emissions arising from Australia’s largest industrial facilities.
The Safeguard Mechanism policy may apply to actions (projects) meeting certain criteria that are referred to us under the EPBC Act.
In cases where the criteria are met, we are required, by law, to share greenhouse gas information with the relevant authorities, namely the:
- Minister for Climate Change
- Secretary of the department responsible for Climate Change
- Climate Change Authority.
If your proposed project is likely to produce 100,000 tonnes or more of greenhouse gases in a financial year, we must provide the greenhouse gas emissions information to the relevant authorities. This is law under Section 15A of the Climate Change Act 2022. This will help Australia meet its climate targets. It also ensures industry remains competitive while we work to reduce greenhouse gas emissions from manufacturing.
Our obligation to notify the relevant authorities occurs only after a project has received an approval under the EPBC Act and where the project:
- is already covered by the Safeguard Mechanism, and the approval is expected to lead to an increase in emissions over 100,000 tonnes in a financial year; or
- is expected, once approved, to become a new facility with emissions over 100,000 tonnes in a financial year.
After project approval, we may ask you for additional information on scope 1 greenhouse gas emissions estimates, or seek confirmation that emissions estimates were calculated using the Clean Energy Regulator’s National Greenhouse and Energy Reporting (NGER) methodology. You should ensure you provide this information within the time requested.
You would also need to meet any other conditions that are set as part of project approval. Read more about project approval and conditions at Approval notices, conditions and making changes after approval.