The Government’s Safeguard Mechanism is supposed to limit emissions; instead, it just lets companies cheat.
Wed 28 May 2025 00.00
Photo: AAP Image/Lukas Coch
The government’s Safeguard Mechanism is the key policy designed, apparently, to set Australia on the path to a low-emissions economy. According to the government’s website, the mechanism “requires Australia’s highest greenhouse gas emitting facilities to reduce their emissions in line with Australia’s emission reduction targets of 43% below 2005 levels by 2030 and net zero by 2050”.
You might then be wondering how is Woodside Energy’s massive existing North West Shelf fossil gas processing facility, which is one of the biggest emitters of CO23 in Australia, is faring under this policy. Surely the Safeguard Mechanism has caused a big change in how it operates?
Alas no. The simple answer is that under the Safeguard Mechanism,the North West Shelf Facility isn’t enacting deep, structural emissions reductions. Woodside happily knows the “Safeguard” part of the Mechanism is safeguarding Woodside and other heavy emitters from having to worry about reducing emissions.
The policy isn’t imposing any material cost on the corporation or affecting the impending approval of the extension of this site for 40 years.
Using the latest data release from the Safeguard Mechanism, here’s a fun collection of facts about the North West Shelf project, and Woodside Energy:
Until the Safeguard Mechanism is reformed so it works as an actual climate regulation, the worst emitters under the scheme will keep using the cheap cheats, and actual emissions will keep rising.
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