The primary focus of this reform was to reduce emission limits, known as baselines, gradually and predictably, in line with reaching net-zero emissions by 2050. Under the reform, baseline emissions levels will be reduced by approximately 4.9% annually until 2030. The scheme includes flexibility to support trade-exposed sites or those where emissions-reduction technology is still in development and not yet commercially available. If a site covered under the Safeguard Mechanism cannot meet the required emissions reductions, they are required to offset emissions by purchasing carbon credits. These credits can be obtained either by purchasing them from other facilities that have successfully reduced their emissions below the required levels or by purchasing Australian Carbon Credit Units.