What's in the guidebook

We unpack the key policy instrument that underpins Australia's compliance carbon market, the  Safeguard Mechanism. The scheme is designed to force Australia's heaviest emitting entities to reduce their emissions over time. This Emission Trading Scheme (ETS) allows the use of Australian Carbon Credit Units (ACCUs), making it a hybrid ETS.​ What does this all mean? 

Heres a snapshot:

• The CER sets an annual emissions baseline for safeguard entities, this is the max emissions they can emit without a penalty

• This baseline on annual scope 1 emissions decreases over time

• Entities who go over the annual baseline need to surrender ACCUs or SMCs as a penalty

• Entities who go under the annual baseline are awarded with SMCs (to sell or hold for the future) 

• The Safeguard Mechanism will drive major demand for ACCUs in the years ahead

• The Safeguard Mechanism is likely to include more entities over time

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But there is much more to it... Jump into the guidebook to unpack all the detail in simple  language and with helpful diagrams to make it more digestible! Enjoy.  

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