About the Safeguard Mechanism (Factsheet and legislative documentation)

The Safeguard Mechanism is the Australian Government’s policy for reducing emissions at Australia’s largest industrial facilities.

It sets legislated limits—known as baselines—on the greenhouse gas emissions of these facilities. These emissions limits will decline, predictably and gradually. These limits will help achieve Australia’s emission reduction targets of 43% below 2005 levels by 2030 and net zero by 2050.

The Safeguard Mechanism commenced in 2016. It was reformed in 2023 to ensure that covered facilities contribute to meeting these targets. The reforms also help strengthen their competitiveness as the world moves to net zero. The Safeguard Mechanism factsheet sets out the scheme’s design settings, including the reforms.

To access DCCEEW’s summary of the scheme, including factsheets, click here.

If you have any questions on the Australian carbon market, or you would like to set up a briefing, please contact our Client Services team via email.

Kind Regards,
The RepuTex Team
Australian Energy Markets