Vales Point Power Station

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

In 2024–25, Vales Point Power Station reported emissions of 563 kt against a baseline obligation of 485 kt — an overage of 78 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 Vales Point Power Station specifically.

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