This policy regulates emissions from large industries, forbidding substantial increases from established baseline levels. The aim is to prevent significant increases in the sector. Industries affected by this measure are those with direct emissions of more than 100 ktCO2e. However, updates (increases) in baseline emission levels have allowed an emissions increase of 12% in only 2 years of operation.
Amendment 2023: The reform of the safeguard mechanism places a restriction on emissions from Australia's 215 largest polluting facilities. It introduces a gradually declining baseline that will fall by 4.9 per cent per year to 2030. The reform mandates that large industrial facilities contribute a proportionate share towards Australia's 2030 climate target.