UPDATE: Running to stand still – Industry baselines under the Safeguard Mechanism

A critical component of both the ALP and Coalition climate policy frameworks is the ‘Safeguard Mechanism’, requiring around 300 of Australia’s largest emitting industrial facilities (excluding the generation sector) to keep their emissions at or below a ‘baseline’, to ensure that abatement contracted under the ERF is not offset by emission increases in other sectors of the economy.

Under Coalition policy, rather than decline over time, facilities may apply to increase their baseline – providing them with headroom to increase emissions without penalty. As of March, 103 facilities (30 per cent) have increased their baselines – setting a ‘Calculated Baseline’