DEN01

DEN01 is a facility operated by Dendrobium Coal Pty Ltd in NSW. Like all covered facilities, industrial operations generate significant emissions. Under Australia's Safeguard Mechanism, DEN01 must keep its annual emissions below a stepping-down baseline — or purchase carbon credits to cover any overage.

In 2024–25, DEN01 reported emissions of 478 kt against a baseline obligation of 199 kt — an overage of 279 kt. The facility covered the overage through a combination of ACCUs and SMCs.

Purchasing credits is legal and intended by the Safeguard Mechanism's design — the policy deliberately allows facilities to choose between cutting on-site emissions or funding abatement elsewhere in the economy. Whether credit purchases represent genuine long-term decarbonisation depends on whether the facility's absolute emissions are trending down over time. The chart above shows the trajectory since reporting began. This question applies to all covered facilities under the Safeguard Mechanism, not DEN01 specifically.

Among 8 comparable facilities, 8 reported emissions above their baseline in 2024–25. The table below compares DEN01 with other facilities covered by the Safeguard Mechanism in the same classification.