Australia: The National Greenhouse And Energy Reporting Act 2007

The National Greenhouse and Energy Reporting Act 2007 (NGER Act) was passed in September 2007. The NGER Act established a mandatory national system to report and record information about greenhouse gas emissions, energy consumption and energy production of corporations.

The NGER Act forms part of a regulatory framework that provides detail about a corporation's obligations regarding auditing, reporting, monitoring and recording emissions and use and production of energy. The framework includes:

• The National Greenhouse and Energy Reporting Regulations 2008;
• The National Greenhouse and Energy Reporting (Measurement) Determination 2008;
• The External Audit Legislative Instrument (this instrument is under development).

The NGER Act will provide data about emissions and use and production of energy, which will be essential to the operation of Australia's National Emissions Trading Scheme. The AETS is expected to be in operation by mid 2010.

Establishment of the NGER Act as a scheme under Commonwealth authority will provide a national emissions and energy reporting program and will avoid duplication of or confusion between State and Territory reporting schemes.

Data reported under the NGER scheme will inform government policy and will be available to the Australian public and will enable a quantified understanding of the greenhouse and energy performance of Australian corporations.

Corporations that might meet the threshold criteria are required to register and to collect data on greenhouse gas emissions and production and consumption of energy from 1 July 2008.

The thresholds for the financial year commencing 1 July 2008 are:

• If a corporation has operational control of a facility that emits 25 kilotonnes or more of greenhouse gases (CO₂ equivalent), or produces or consumes 100 terajoules or more of energy;
• If a corporation is a member of a corporate group that emits 125 kilotonnes or more greenhouse gases (CO₂ equivalent), or the corporate group produces or consumes 500 terajoules or more of energy.

Corporations that fall into these categories must register with the Greenhouse and Energy Data Officer before 31 August 2009 and must submit a report for the 2008/2009 financial year by 31 October 2009.

Lower thresholds for corporate groups will be introduced by 2010-11. The final thresholds will be 50 kilotonnes or more of greenhouse gases (CO₂ equivalent) or production or consumption of 200 or more terajoules of energy.

An online calculator is available at www.climatechange.gov.au/reporting to enable corporations to assess whether their production of emissions and use and production of energy will meet or exceed the thresholds for reporting.

The NGER covers all greenhouse gas emissions. Sectors covered include stationary energy (eg power stations), transport, fugitive emissions, industrial processes (eg smelting) and the waste sector. Non-energy greenhouse gas emissions from agriculture, land use, land use changes and forestry will not be included.

Participation in the scheme is mandatory for corporations who pass the threshold. Penalties may be imposed for breaching the NGER Act. In some circumstances penalties may be enforced against chief executive officers.

Emma Lynch is a Senior Associate at Madgwicks and her energy experience includes advising on construction contracts for energy projects, power purchase agreements, connection agreements, energy rights agreements, energy asset sale agreements, operation and maintenance agreements for energy assets and electricity transactions.

Andrew Hawking is a Senior Associate at Madgwicks and is experienced in advising on the Victorian Government's climate change abatement carbon capture and storage projects, renewable energy projects, joint ventures, and large scale land use projects including exploration, mining, national parks, environment and energy.

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