Safeguard Mechanism (reformed 2023)
The Safeguard Mechanism is Australia's principal policy for reducing emissions from its largest industrial facilities. Reforms that took effect in July 2023 introduced baselines declining by a default 4.9% a year to 2030 and tradable Safeguard Mechanism Credits for facilities that stay below their baselines.
Legal reference National Greenhouse and Energy Reporting Act 2007; National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015; reforms legislated March 2023
Checked against Clean Energy Regulator (Australian Government) · 4 Oct 2026