Reforms Proposed To Safeguard Mechanism Framework Released

Snapshot

On 10 January 2023 the Department of Climate Change, Energy, the Environment and Water (DCCEEW) released a position paper for consultation detailing proposed reforms to the Safeguard Mechanism. The reforms are directed at achieving Australia's emissions reductions target of 43% below 2005 levels by 2030 and commitment to net zero emissions by 2050, and overall requires reductions of 4.9% per year for entities covered by the Safeguard Mechanism.

The proposed reforms to the Safeguard Mechanism framework has three key concepts:

• a progressive baseline reduction rate from 1 July 2023 to the end of 2030, which will transition to industry average benchmarks post-2030;