The Conservation Council of WA (CCWA) has claimed Australia’s emissions are not on track to meet reduction goals under the Federal Government’s Safeguard Mechanism (SGM), despite assurances from both the state and federal governments that this would be the vehicle to achieve 43% reductions by 2030 and net-zero by 2050.
Commenting on the release of the first full year of financial year data for the revamped SGM last week, CCWA Program Coordinator Liam Lilly said Western Australia was complicit in the underwhelming figures, with the state’s SGM facilities reducing emissions by less than two per cent, thanks in large part to production declines at the North West Shelf.
“In total, 35 WA facilities had an increase in emissions over the first 12-months since the SGM came into effect on 1 July 2023, while the emissions from 56 WA facilities were above their baseline, incurring a total liability of 2.38 Mt CO2-e (mega tonnes),” Mr Lilly said.
“Once again, Chevron’s Gorgon facility is the biggest SGM polluter in Australia, coming in at 8.80 Mt CO2-e. Chevron’s Gorgon and Wheatstone LNG plants combined to emit 12.86 Mt CO2-e.
“For comparison, the entire state of South Australia emitted 15.82 Mt CO2-e in the latest yearly United Nations Framework Convention on Climate Change (UNFCCC) reporting period.
“Over the 12-month period, Gorgon’s emissions increased by 0.61 Mt CO2-e, while Wheatstone’s increased by 0.27Mt CO2-e.
“Despite the increases, both facilities will be awarded hundreds of thousands of Safeguard Mechanism credits worth millions of dollars,” he added.
CCWA Acting Executive Director Mia Pepper said the SGM was intended to safeguard industry, not the climate.
“These figures represent little change beyond business as usual. Even when a company pollutes above the baseline it can simply pay to pollute through carbon credits. It’s little wonder that Woodside favoured the WA government scrapping state-based emissions assessment in favour of relying solely on the SGM,” Ms Pepper said.
“The results confirm the SGM is not fit for purpose and cannot be the only means of driving down emissions. In WA, the state government effectively axed our state greenhouse gas guidelines, arguing they were duplicating the SGM.
“The WA EPA is now reviewing conditions of 20 of WA’s worst polluters with the view to removing conditions seen to be duplicating the SGM. However, there is no public review or transparency in this process, and we remain highly skeptical about the policy approach and the outcome.
“The SGM and other policies provide an illusion of protection – it’s smoke and mirrors.
“When it comes to the numbers and emissions reductions, we are sleepwalking into a changing climate disaster that will have huge impacts on our environment and communities.
“We’ve just seen record breaking coral bleaching and marine heatwaves, while the summer before we saw huge areas of forests dying from lack of water and extreme and prolonged heat. We are acutely aware of the limitations of the SGM and that existing policies have been watered down so much that they are a charade.
“CCWA continues to call for WA to pass the Climate Bill with significant amendments that legislate emissions reduction targets in line with Australia’s commitments to the Paris Agreement.
“WA is the only state where emissions continue to rise, and we need to act as a global citizen to reverse this number. We are not immune to the impacts of climate change, and we should not be exempt from emissions reduction targets.
“We have the renewable resources to drive down emissions and maintain our economy. This is the only way we can create the certainty for industry and for our communities, both in WA and across Australia,” Ms Pepper said.
What is the Safeguard Mechanism
The Safeguard Mechanism (SGM) is the Australian Government's policy for reducing emissions at Australia's largest industrial facilities. The SGM 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. To help reach 43% reduction targets, facility baselines will fall by 4.9% per year until 2030, with required cuts post-2030 released in 2027. This means that in theory, facilities should reduce pollution annually to comply with the SGM.