{"id":608785,"date":"2026-04-15T16:09:10","date_gmt":"2026-04-15T16:09:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/608785\/"},"modified":"2026-04-15T16:09:10","modified_gmt":"2026-04-15T16:09:10","slug":"most-heavy-emitters-blow-their-carbon-budgets-but-bowen-sees-clear-sign-safeguard-mechanism-is-working","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/608785\/","title":{"rendered":"Most heavy emitters blow their carbon budgets, but Bowen sees “clear sign” Safeguard Mechanism is working"},"content":{"rendered":"

New data from the federal government\u2019s Safeguard Mechanism have shown a reduction in emissions across heavy industry of 5.5 per cent over the 2024-25 financial year \u2013 and a 12 per cent reduction since the introduction of reforms by the Albanese government in 2022-23.<\/p>\n

But the new data, published by the Clean Energy Regulator<\/a> on Wednesday, also shows that of the 208 facilities currently covered by the Safeguard Mechanism, 141 facilities\u2019 net emissions exceeded their allocated baselines and resorted to offsets. <\/p>\n

The Safeguard Mechanism is Australia\u2019s key policy for cutting industrial greenhouse gas emissions, using a baseline-and-credit scheme that requires entities generating more than 100,000 tonnes of CO2-e a year to progressively reduce their emissions in line with national targets.<\/p>\n

Each new project is allocated a \u201cbaseline\u201d level of emissions by the Clean Energy Regulator that is supposed to reduce over time, forcing the owner to bring down emissions either directly or by offsetting.<\/p>\n

The real-life effectiveness of the mechanism, which has its roots in the Abbott-era of the climate-denying Coalition government, is the subject of much debate \u2013 and of a series of policy reviews also are currently underway.<\/p>\n

Last year, an analysis<\/a> of the 2023-24 Safeguards data by The Queensland Conservation Council (QCC) found new fossil fuel projects in that state had increased their greenhouse gas emissions by 830,000 tonnes under the scheme.<\/p>\n

And recent report from Tim Baxter at Naru Research described<\/a> the reformed mechanism as \u201csimply not up to the task of driving emissions reduction at the scale that the climate crisis requires\u2026 whichever way you look at it.\u201d<\/p>\n

Nevertheless, federal energy and climate minister Chris Bowen has taken the latest data \u2013 which is not yet covered in the Naru report \u2013 as a win, describing it as \u201ca clear sign that the Albanese Government\u2019s Safeguard Mechanism is working and on track to meet targets.\u201d<\/p>\n

\u201cOnsite emissions are now 5.8 million tonnes lower than they were when our reforms were made two years ago, equivalent to taking over 2 million cars off the road or around 60% of domestic aviation emissions,\u201d Bowen said on Wednesday.<\/p>\n

\u201cIndustrial facilities are electrifying and relying more on sovereign renewable energy, as well as upgrading their facilities with technologies that trap harmful gases at the source.\u201d<\/p>\n

The CER report says that 208 facilities were covered by the Safeguard Mechanism in 2024-25, 11 fewer than in the 2023\u201324 reporting period. Total covered emissions were 132.8 Mt CO2-e \u2013 a 2.3 per cent reduction from 136.0 Mt CO2-e in 2023\u201324.<\/p>\n

Total net emissions were 120.3 Mt CO2-e following the surrender of Australian carbon credit units (ACCUs) and Safeguard Mechanism credit units (SMCs) \u2013 a 5.5% reduction from 127.3 Mt CO2-e in 2023\u201324. Total baselines were 126.2 Mt CO2-e \u2013 a 7.3 per cent reduction from 136.1 Mt CO2-e in 2023\u201324.<\/p>\n

\u201cOnce flexibility measures for the 2024\u201325 reporting period were finalised, 141 facilities\u2019 net emissions exceeded their baselines, with a total excess of 13.7 Mt CO2-e,\u201d the report adds. <\/p>\n

This is an increase of 4.5 Mt CO2-e, from the 9.2 Mt CO2-e total excess in 2023\u201324, the CER says. To manage excess emissions, entities surrendered 2.6 million SMCs. <\/p>\n

\u201cThis is good policy working well, providing that investment certainty for industry, to make the investments they need, to make sure that their operations are viable on an ongoing basis but also reducing emissions as they go,\u201d Bowen said at a press conference on Wednesday. <\/p>\n

\u201cI note that \u2026 the only climate policy the opposition has so far released is to abolish the Safeguard Mechanism. Based on my reading of Mr Tehan\u2019s comments, not only abolish our reforms, but abolish the entire mechanism, which was introduced by Greg Hunt under Tony Abbott. <\/p>\n

\u201cWhich just shows how far the Liberal Party has fallen when it comes to climate policy, that they\u2019re now abolishing policies that Tony Abbott put into place and policies that are working, that industry has welcomed very solemnly, and that are seeing emissions come down. <\/p>\n

\u201cSo that\u2019s good progress, a lot more work to do \u2013\u00a0and of course, we\u2019ll conduct the Safeguard review later this year, as I previously said \u2013 but good and encouraging signs.\u201d<\/p>\n

Bowen says the federal government has also released Australia\u2019s National Inventory Report for the 2023-24 financial year, which he says reflects new climate data and improvements in emissions calculation methodologies which has augmented land sector emissions.<\/p>\n

Renew Economy had not seen the inventory report by the time of publication.<\/p>\n

Bowen says that outside of land sector emissions, which are \u201csubject to ongoing variability,\u201d the new data confirms that emissions are down 7.2 million tonnes since 2022-23 across the economy, and 35.5 million tonnes less than 2018-19, before Covid wiped out transport emissions<\/p>\n

\u201cNon-land emissions have been reducing at triple the rate achieved under the previous Coalition government,\u201d Bowen says.<\/p>\n

\u201cToday\u2019s data reflects updated measurements for previous years as data becomes more precise but also confirms the downwards trend in emissions overall.\u201d<\/p>\n

If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, please\u00a0click here to subscribe to our free daily newsletter<\/a>.<\/p>\n

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