Karlawinda Gold Project

Karlawinda Gold Project is a facility operated by Capricorn Metals Limited in WA. Like all covered facilities, industrial operations generate significant emissions. Under Australia's Safeguard Mechanism, Karlawinda Gold Project must keep its annual emissions below a stepping-down baseline — or purchase carbon credits to cover any overage.

In 2024–25, Karlawinda Gold Project reported emissions of 110 kt against a baseline obligation of 100 kt — an overage of 10 kt. The facility covered the 10 kt overage by purchasing 9,583 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 Karlawinda Gold Project specifically.

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