The Safeguard Mechanism Explained
The Safeguard Mechanism requires large greenhouse gas emitting facilities to keep their emissions equal to, or below, historic levels (known as ‘the reported baseline’). Companies who have exceeded their reported baseline for 2016-2017 are now rushing to have their emissions limit increased via an alternative ‘calculated baseline’. Applications for a calculated baseline may have a 30 July 2017 deadline.
Applying for Calculated Baselines
Applications for calculated baselines must be supported by:
Detailed evidence that the proposed calculated baseline is accurate and relevant
Evidence that the facility meets the criteria to apply for a calculated baseline
An independent audit
The Clean Energy Regulator is closely scrutinising the basis of preparation for calculated baselines. The Regulator can refuse applications for calculated baselines at their discretion – so be prepared and have your evidence ready.
If you have exceeded your reported baseline in 2016-2017, and do not have a calculated baseline, your greenhouse gas may need to be offset using Australian Carbon Credit Units – a potentially expensive option!
Key Dates for Calculated Baseline Applications
| Year with the highest production estimate for the facility | Deadline to apply for a calculated baseline | Regulator’s decision |
| 2017-2018 | 30 July 2017 | 60 days after application |
| 2018-2019 | 31 October 2017 |
Further information
For more information on calculated baselines and whether they apply to you refer to our article: Safeguard Mechanism: Your guide to compliance
For help preparing your application for a calculated baseline, or to request an audit of your calculated baseline, contact Shaun on 03 9865 1400.