The Safeguard Mechanism is now in effect.
Coming into effect last Friday (1 July), the Safeguard Mechanism will apply to facilities that are required to report under the National Greenhouse and Energy Reporting (NGER) scheme and emit more than 100,000 tonnes of carbon dioxide equivalent (CO2-e) of emissions in a financial year.
The Clean Energy Regulator states that they expect 370 facilities across a broad range of sectors will receive a baseline determination under the Safeguard Mechanism. They also stated that the fact that a facility has a baseline determination, doesn’t guarantee it will be covered under the Safeguard Mechanism in this financial year. Coverage will depend on whether the facility’s covered emissions for 2016-17 exceed the 100,000 tonne CO2-e threshold.
The Clean Energy Regulator also stated that they have contacted the majority of facilities to notify them of their proposed reported emissions baseline.
More information on the Safeguard Mechanism can be found here.