The Clean Energy Regulator says 219 facilities were covered by the Safeguard Mechanism in 2023–24. It also reports that the Safeguard Mechanism applies to facilities across sectors such as coal mining, manufacturing, oil and gas extraction, and transport that emit more than 100,000 tonnes of CO2-e in a year.

The Clean Energy Regulator states that it is required to publish baseline and emissions information each year for facilities covered by the Safeguard Mechanism. This is the official repository for the 2023–24 baselines and emissions data.

The Clean Energy Regulator reported that 219 facilities were covered under the Safeguard Mechanism for the 2022–23 period. Combined, they reported 138.7 million tonnes of scope 1 CO2-e emissions.

The Clean Energy Regulator says the Safeguard Mechanism applies to all facilities that emit more than 100,000 tonnes of carbon dioxide equivalent of covered emissions in a financial year. The 2022–23 reporting year summary lists 218 facilities covered under the scheme.

“Around **215 large industrial facilities** are covered by the Safeguard Mechanism. Each year, every large facility within the Mechanism needs to prove that their net emissions for that year are below their baseline.” The paper explains that the reforms “are expected to result in at least 205 Mt of emission reductions between 2023‑24 and 2029‑30” and that “a **uniform, annual decline rate of 4.9 per cent each year** is expected to meet the Safeguard’s share of the national emissions budget… The decline rate will apply to existing and new facilities, except where a differential trade‑exposed baseline adjusted (TEBA) rate has been granted.” This decline applies to baselines that are calculated using emissions intensity benchmarks.

The 2023 Amendment Rules establish declining baselines for covered facilities. Rule provisions set out that baselines for existing and new safeguard facilities are calculated on an **emissions‑intensity basis** using production variables, and that a **default decline rate of 4.9% per year** applies to standard and landfill baselines until 2030, subject to adjustments for Trade Exposed Baseline‑Adjusted (TEBA) facilities. The policy intent is that covered facilities’ allowable emissions per unit of output fall over time, thereby requiring reductions in emissions intensity.

The 2023 amendment rule implements the reforms commencing 1 July 2023. The explanatory materials state that the Safeguard Mechanism “sets baselines for around 215 of Australia’s largest industrial facilities, covering around 28 per cent of Australia’s emissions,” and that from 1 July 2023 “baselines will be set on a production‑adjusted basis using emissions‑intensity values.” The rule introduces an ‘emissions reduction contribution’ factor so that “baselines decline over time to help deliver Australia’s emissions reduction targets,” thereby requiring covered facilities to reduce their emissions per unit of output or offset the excess.

The regulator describes the safeguard mechanism as covering “**around 215 of Australia’s largest industrial facilities** that each emit more than 100,000 tonnes of carbon dioxide equivalent (t CO2‑e) a year.” It explains that “baselines set a limit on the net emissions a safeguard facility can produce” and that, following the 2023 reforms, “facility baselines are mostly set on an **emissions‑intensity basis** using production variables, with **baseline decline rates applied each year to 2030** to help meet Australia’s emissions reduction targets.”

A slide describing the policy states: "The Safeguard Mechanism is the Australian Government’s policy for reducing greenhouse gas emissions at Australia’s largest industrial facilities. It sets legislated limits—known as baselines—on the net emissions of covered facilities. Covers around 215 facilities with emissions more than 100,000 tonnes CO2-e." The same document notes under reforms that "Baselines will decline by 4.9 per cent each year, delivering over 200 Mt of emissions reductions by 2030," and that "Significant reforms (including crediting) commenced July 2023."

The Act’s objects clause states that one object is "to provide for the progressive reduction of net emissions of greenhouse gases from the operation of designated large facilities" under the National Greenhouse and Energy Reporting Act 2007. The amendments establish a framework for safeguard mechanism credits to be issued where a facility’s net emissions are below its baseline level for a period. The Act amends the NGER Act to enable the setting and adjustment of baselines for covered facilities and ties these baselines to Australia’s emission reduction targets, thereby requiring covered large facilities to reduce net emissions (or emissions intensity, depending on the method used) over time.

ICAP notes that “The facility‑level baselines are calculated using **output‑based benchmarking based on emissions intensity**.” It further states: “A **default decline rate of 4.9% per year applies to standard and landfill baselines up to 2030.** A default decline rate of 4.9% per year applies to the baselines of existing and new facilities until 2030… Trade exposed facilities in the manufacturing sector can reduce their decline rate to as low as 1% per year, or 2% per year for other sectors, if they apply for TEBA status.” It describes the mechanism as “reducing greenhouse gas emissions at Australia’s largest industrial facilities,” which “**covers around 215 facilities** with emissions more than 100,000 tonnes CO2‑e.”

A presentation on Australia’s scheme notes: "The Safeguard Mechanism is the Australian Government’s policy for reducing greenhouse gas emissions at Australia’s largest industrial facilities. It sets legislated limits—known as baselines—on the net emissions of covered facilities. Covers around 215 facilities with emissions more than 100,000 tonnes CO2-e..." On the reforms it states: "Reformed mechanism commenced on 1 July 2023, with crediting and reductions in baselines expected to deliver over 200 million tonnes of emissions reductions by 2030" and elsewhere that "Baselines will decline by 4.9 per cent each year."

The Grattan Institute notes that the government “has decided to continue setting baselines using emissions intensity values, rather than fixed levels of emissions.” It explains that under the reforms “baselines will decline at 4.9 per cent a year on average to 2030, with some variation for trade‑exposed facilities,” and that this means “Safeguard facilities will need to reduce the emissions intensity of their production over time or buy credits to comply.” The report highlights that the mechanism covers “around 215 facilities that each emit more than 100,000 tonnes of CO2‑e a year.”

The legal analysis explains that "The Safeguard Mechanism applies to the covered scope 1 emissions of facilities that emit more than 100,000 tonnes of CO2-e per year." It adds: "Currently the Safeguard Mechanism applies to 215 facilities from a broad range of industries, including mining, oil and gas and manufacturing. These 215 facilities have a ‘baseline’ which is a volumetric emissions limit. Facilities must keep their net-emissions below their baseline." Discussing the reforms, it notes: "The reforms also require facilities to decrease emissions below their baseline by 4.9% each year until 2030, although some exceptions will be made for emissions-intensive trade-exposed facilities (EITE)."

ICAP explains that the Safeguard Mechanism assigns mandatory facility-level emissions baselines for over 200 large facilities in Australia. It also says FY2024 was the first full compliance year under the reformed Safeguard Mechanism.

PwC states that reforms to the Safeguard Mechanism were passed by the Australian Parliament in May 2023 and are effective from 1 July 2023. It says covered facilities, currently around 215, must keep their emissions below a legislated baseline that will change over time.

Ember’s policy note states: “The mechanism was first implemented in 2016 and imposed obligations upon Australia’s **215 largest emitters**, that is facilities that emit more than 100,000 tCO2e per year.” It explains that under the 2023 reform proposals, “baselines will be calculated on an **emissions‑intensity basis** and will **decline annually** to 2030 at a default rate of 4.9% per year, except for Trade Exposed Baseline‑Adjusted facilities that may receive lower decline rates.” It emphasises that this design “requires covered facilities to reduce their emissions per unit of production over time rather than imposing a fixed cap on total emissions.”

InfluenceMap summarises the reform: “The reformed Safeguard Mechanism will require the country's largest emitters to keep emissions below a baseline that will decline over time in line with Australia’s climate targets.” It notes that the mechanism “covers around 215 of Australia’s largest industrial facilities, each emitting over 100,000 tCO2‑e per year,” and that “baselines are based on emissions intensity benchmarks and are designed to fall annually, encouraging facilities to reduce the emissions intensity of their operations.”

The briefing describes the reformed scheme as “reducing greenhouse gas emissions at **Australia’s largest industrial facilities**” and states it “covers around **215 facilities with emissions more than 100,000 tonnes CO2‑e** including mining, oil and gas, manufacturing, transport and waste facilities.” It explains that “Baselines will **decline by 4.9 per cent each year**, delivering over 200 Mt of emissions reductions by 2030,” and that facility baselines are calculated using “facility‑specific emissions‑intensity in first year (2023‑24)… 100% industry average from 2030 onwards,” showing the emissions‑intensity‑based nature of the declining baselines.

The Safeguard Mechanism reforms passed in 2023 changed the scheme so covered facilities face declining baselines over time, with the standard decline rate set at 4.9% per year unless adjusted. This is consistent with official government explanations of the reformed scheme.

Climate Integrity says the number of facilities covered in the reporting period has dropped from 219 to 208. It also notes that the 2023–24 data covered 219 facilities and that the 2024–25 data showed 208 safeguard facilities.