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Carbon Markets

The Safeguard Mechanism: Australia’s Toothless Tiger… or Sleeping Dragon?

Covered emissions and baselines

The Safeguard Mechanism covers large industrial facilities with direct emissions of more than 100,000 tonnes of CO2-e per year. Around 203 facilities (excluding electricity) are covered by the scheme, across the mining, energy, manufacturing, and transport sectors. Together, these facilities are responsible for over one quarter of Australia’s national greenhouse gas (GHG) emissions.

Covered emissions (shown via the black dotted line in Figure 1) were 142 million tonnes in FY20, or 14% above 2005 levels (115 Mt), and are projected to grow to 149 Mt in FY30 (29% above 2005 levels). From today’s levels

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