The Australian government is consulting industry and broader stakeholders on its emissions reduction rules.

The consultations relate largely to a safeguard mechanism for the setting of baselines, or limits, for new and existing facilities, as well as the use of offsets and treatments for emissions-intensive and trade-exposed businesses.

A more detailed design proposal for the safeguard mechanism will be open for feedback later this year.

Former federal environment minister Greg Hunt introduced the safeguard mechanism as part of emissions limits - also referred to as baselines - on Australia's 215 largest emitters.

Facilities that emit more than 100,000 tonnes of greenhouse gases a year are subject to the existing mechanism, and the current government says this threshold will stay. 

But the Albanese government wants to strengthen the mechanism, as it currently only applies to facilities that account for 28 per cent of Australia's total emissions.

More details are available here.