Australia’s big polluters must cut emissions by nearly 5% a year, but can use offsets to get there

Plan that is key to Albanese government’s 2030 target will focus on emissions intensity to encourage cleaner practices rather than cutting production

Australia’s big polluting sites will have to reduce greenhouse gas emissions by nearly 5% a year but will face no limits on the use of carbon offsets under the Albanese government’s plan to deal with industrial emitters.

The climate change minister, Chris Bowen, on Tuesday released the government’s plan to revamp the safeguard mechanism, a Coalition policy that was promised to limit emissions from more than 200 industrial facilities, but in practice has failed.