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
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
The National Greenhouse and Energy Reporting (Measurement)
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
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
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
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.
Greenhouse gas emissions (in
Energy consumption or production (in Tj)
1 July 2008
1 July 2009
1 July 2010
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
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
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
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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