Safeguard Mechanism: Additional Prescribed Production Variables amendment commenced

The National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Additional Prescribed Production Variables) Rule 2020 commenced 2 October. A compilation version of the Safeguard Rule (that integrates the changes from the amendment instrument with the existing Safeguard Rule) is available here.

The amendment sets prescribed production variables and default emissions intensity values in the Schedules to the Safeguard Rule. These can be used by Safeguard facilities to set baselines (or emissions limits) under the Safeguard Mechanism.

The amendment instrument sets prescribed production variables for the majority of remaining Safeguard sectors not previously covered, including:

  • Metal manufacturing
  • Pulp and paper
  • Clinker and cement
  • Pipelines
  • Transport (road and water)

It also sets default emissions-intensity values for mining production variables already published in the Safeguard Rule, including coal, iron ore, bauxite and run-of-mine metal ore.

The Safeguard Mechanism: Prescribed production variables and default emissions intensities document details the emissions sources that were either included in or excluded from default emissions intensity calculations, and specifies which emissions sources can be included in the calculation of an estimated (site-specific) emissions intensity value for a prescribed production variable. It has been updated to incorporate the Tranche 2 additions and is available here.

The amendments also update all default emissions intensity values to incorporate revised Global Warming Potentials from the Intergovernmental Panel on Climate Change’s Fifth Assessment Report, which apply under the National Greenhouse and Energy Reporting scheme from 1 July 2020.

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