The Australian Government's Emissions Reductions Fund (ERF) includes a Safeguard Mechanism which is to ensure that emmissions reduction achieved under the ERF are not offset by activities elsewhere in the economy.
Starting in 1 July 2016, existing emission intensive businesses will have to adhere to set emission baseline. These will set a ceiling of an absolute amount of emissions that (in net terms) a certain business activity should not exceed.
The baselines will ususally follow historical emissions.
However, baselines for lage business facilities that start or significantly increase an activity after 1 July 2020 will be set differently.
Their level is to reflect 'best practice' in the respective sector, and will be determined through certain intensity benchmarks.
In April, the Government released draft guidelines for the development of these intensity benchmarks.
The consultation paper will be open for comment until 6 May 2016, after which submissions will be reviewed by an independent committee.