Following the close of the financial year 2018 NGER reporting period, responsible entities will need to determine if they have exceeded their baseline under the Safeguard Mechanism.
The safeguard applies to around 140 large businesses that have facilities with direct emissions of more than 100,000 tonnes of carbon dioxide equivalence (t CO2-e) per year. This covers around half of Australia’s emissions. The entity with operational control of a facility will be responsible for meeting safeguard requirements, including that the facility must keep net emissions at or below baseline emissions levels.
There are various methods for a facility to meet its safeguard requirement depending on its emissions, how it operated during the financial year and its expected operation in the future. Understanding the best way of meeting the baseline is critical to avoid having to overpay under the mechanism. Responsible entities have until 31 October 2018 to submit their financial year 2018 report and apply for any change to benchmark calculations. If a responsible entity still exceeds their baseline, they have until 28 February 2019 to secure Australian Carbon Credit Units (ACCUs) to offset their excess emissions.
Edge is able to provide entities with data that supports your NGER reporting requirements. Edge also works with various buyers and sellers of ACCUs and can assist with the sale or purchase of certificates if required. Finally, if your business has been caught with excess emissions, Edge can proactively design strategies to help mitigate costs under the mechanism.
If you would like to explore services relating to NGER reporting requirements and have any questions regarding the Safeguard Mechanism, call Edge on 07 3905 9220 or 1800 334 336 or speak with your Edge Portfolio Manager.