The Safeguard Mechanism applies to more than 200 facilities that emit more than 100,000 tonnes of greenhouse gases a year, including coal mines, liquefied natural gas plants, steelworks, aluminium refineries, and large manufacturers. "What we've seen to date is that it hasn't cut climate pollution very much from the facilities it covers and is essentially an offsetting scheme," he told AAP. Australia's electricity and agricultural sectors had made significant efforts to cut pollution, Mr McLeod said, and the mechanism should ensure other markets pulled their weight. "When we look around for our next best opportunity to cut climate pollution, it's really in the resources sector," he said. Consultation on the Safeguard Mechanism Review will remain open until September 18, with a report due in early 2027.