ON POINT: Summary of proposed Safeguard Mechanism 2.0 policy positions

The below summary of proposed policy positions is derived from the Government’s policy position paper, with expanded commentary by RepuTex.

The emissions reduction task

• The Safeguard Mechanism’s 2030 target would be set at no more than 100 Mt in 2030 and 1,233 Mt between 2021 and 2030, representing a proportional share of the national 2030 target and delivering an estimated 205 million tonnes of abatement (relative to current trends) by the end of the decade.

Setting baselines for existing facilities

• The existing production-adjusted (intensity) framework would be retained.
• Baselines for existing facilities would be set using a hybrid model initially weighted towards the use of site-specific emissions intensity values, and transitioning to industry average emissions intensity values by 2030.

Calculating site-specific emissions intensity values

• All existing facilities’ site-specific emissions-intensity values would be reset using historic data.
• Facilities would need to apply for site-specific emissions-intensity values by 30 April 2024, with the application accompanied by an audit.
• The values would be calculated using the middle two values from the four most recent years of data (2018-19 to 2021‑22).
• The two years of data would be used to calculate a production-weighted, average emissions‑intensity