JGN

JGN is a gas supply facility operated by Jemena Gas Networks (NSW) Ltd in NSW. Like all covered facilities, industrial operations generate significant emissions. Under Australia's Safeguard Mechanism, JGN must keep its annual emissions below a stepping-down baseline — or purchase carbon credits to cover any overage.

In 2023–24, JGN reported emissions of 341 kt against a baseline obligation of 340 kt — an overage of 785 t. The facility covered the 785 t overage by purchasing 785 Australian Carbon Credit Units (ACCUs) — credits generated by carbon abatement projects elsewhere in Australia such as soil carbon farming, avoided land clearing, and landfill gas capture.

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 JGN specifically.

Across the gas supply sector, 3 of 5 covered facilities reported emissions above their baseline in 2023–24. The table below compares JGN with other gas supply facilities covered by the Safeguard Mechanism.