The proposal would reform the Safeguard Mechanism to align with 1.5 degrees by tightening baselines and limiting offsets to hard-to-abate sectors only. This would include regulatory changes to ensure covered emissions, baselines and the decline rate are recalibrated to what the science requires and ACCU offsets will be limited to those few hard-to-abate sectors.

The proposal would start on 1 July 2025 and end on 1 July 2029.