Rail

Rail is a rail freight facility operated by THE PILBARA INFRASTRUCTURE PTY LTD in WA. Like all covered facilities, diesel-powered freight operations generate emissions across the national network. Under Australia's Safeguard Mechanism, Rail must keep its annual emissions below a stepping-down baseline — or purchase carbon credits to cover any overage.

In 2023–24, Rail reported emissions of 255 kt against a baseline obligation of 242 kt — an overage of 13 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 Rail specifically.

Across the rail freight sector, 4 of 5 covered facilities reported emissions above their baseline in 2023–24. The table below compares Rail with other rail freight facilities covered by the Safeguard Mechanism.