Australian facilities covered by the Safeguard Mechanism (SGM) surrendered significantly more carbon credits in the 2024–2025 financial year, with demand rising 52% compared to the previous year.
An industrial worker and an office professional analyzing carbon footprint data together in front of a large Australian energy facility. AI generated picture.
Data published by the Clean Energy Regulator (CER) shows that 106 facilities used 10.8 million Australian Carbon Credit Units (ACCUs) during the period, up from 7.1 million ACCUs in 2023–2024. A further 48 facilities surrendered 2.5 million Safeguard Mechanism Credits (SMCs), a credit type generated by facilities that reduce emissions below their baseline, bringing total surrenders to 13.4 million units.
Brokers Core Markets noted that the figures 'came in at the top end of market expectations, albeit with a greater composition of ACCUs than were anticipated.' Energy company Woodside and coal producer BM Alliance recorded the highest individual volumes, surrendering 703,000 tonnes of CO₂ equivalent (tCO₂e) and 612,000 tCO₂e respectively.
The increase in credit use reflects the continued tightening of facility baselines under the scheme. Total baselines fell from 136.1 million tCO₂e to 126.2 million tCO₂e in 2024–2025, a reduction of approximately 9.9 million tCO₂e in a single year. Across two years, baselines have decreased by a cumulative 45.4 million tCO₂e. Total covered emissions also declined, moving from 136 million tCO₂e to 132.8 million tCO₂e over the same period.
The CER noted that this trajectory is set to continue. 'As baselines continue to decline each year, downward pressure on net emissions will continue, thereby requiring greater use of ACCUs and SMCs, incentivising further decarbonisation,' the regulator stated.
Read more: Compliance and quality redefine carbon credit supply in Q1 2026
Compliance rates remain high. As of the 1 April deadline, 205 of the 208 covered facilities—98.6%—had met their obligations for the 2024–2025 financial year, which runs from 1 July to 30 June.
The data points to a maturing compliance market in which mandatory emissions reduction targets are translating into measurable demand for high-quality carbon credits.
Read more: What is a life cycle assessment, and why does it matter?
As Safeguard Mechanism baselines tighten and compliance demand for high-quality carbon credits rises, the value of a verified, traceable supply becomes increasingly clear. Green Earth develops nature-based carbon projects built to meet the standards that today's market rewards: rigorous methodology, independent verification, and full traceability from ecosystem to certificate. For businesses seeking carbon credits that hold both their value and their credibility, Green Earth offers measurable environmental and socio-economic outcomes backed by some of the most demanding quality benchmarks in the market.
