National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au F2024L00733 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Minister for Climate Change and Energy

National Greenhouse and Energy Reporting Act 2007

National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024

Background

The National Greenhouse and Energy Reporting Act 2007 (NGER Act) provides a national framework for reporting and disseminating company information about greenhouse gas emissions, energy production, energy consumption and other information. Section 77 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The National Greenhouse and Energy Reporting Regulations 2008 (the NGER Regulations) are made under this provision.

The National Greenhouse and Energy (NGER) scheme as established under the Act is a key data source which supports Australia’s international and domestic reporting obligations and informs domestic climate and energy policies. Emissions reported under the NGER Act underpin the operation of the Safeguard Mechanism, which places emissions limits on Australia’s largest greenhouse gas emitters.  

The National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the Measurement Determination), made under subsection 10(3) of the NGER Act, specifies the methods by which the amounts of emissions and energy production and consumption are to be measured for the purposes of the Act.

Purpose and Operation

The purpose of the National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024 (the amending Regulations) is to create provisions requiring reporting of:

  • The methods used to estimate emissions from fuel combustion, and other information relevant to the use of those methods specified by Schedule 4 to the Measurement Determination; and
  • The methods used to estimate ‘scope 2’ emissions, other information relating to the use of those methods specified by Schedule 4 to the Measurement Determination, and the amount of scope 2 emissions estimated.

Details of the amending Regulations are outlined in Attachment A.

The amending Regulations commence on the day after registration to complement amendments to the Measurement Determination, made by the National Greenhouse and Energy Reporting (Measurement) Amendment (2024 Update) Determination 2024 which apply for the reporting year starting 1 July 2024. One of the purposes of these amendments is to set out the information that entities are required to report under Schedule 4.

The NGER Regulations are exempt from sunsetting under Legislation (Exemptions and Other Matters) Regulation 2015 section 12, item 42A. This exemption is justified because the legislative instrument implements international reporting obligations under the United Nations Framework Convention on Climate Change and is scientific and technical in application. There would be limited benefit in sunsetting of this instrument because it is required on an ongoing basis for relevant persons to determine their emissions reporting obligations and for Australia to comply with its international reporting obligations.

Consultation

The proposals to require reporting of information relevant to the use of those methods specified by Schedule 4 to the Measurement Determination relating to methods used to estimate emissions from fuel combustion and scope 2 emissions, together with proposed transparency measures which the amending Regulations would enable, were subject to public consultation (National Greenhouse and Energy Reporting (NGER) scheme – 2024 proposed updates) from Monday 29 April to Friday 24 May 2024. Two submissions were received in support of proposed transparency measures relating to fuel combustion; nine submissions were received in support of proposed transparency measures relating to scope 2 emissions. No submission opposed the proposed reporting requirements.             

Regulatory Impact

The regulatory impacts of the amending Regulations have been assessed as minor by the Office of Impact Assessment (ref OIA24-06759). 

A statement of the amending Regulations’ compatibility with human rights is set out in Attachment B.

The amending Regulations are a legislative instrument for the purposes of the Legislation Act 2003.


ATTACHMENT A

Details of the National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024

Section 1—Name

This section provides that the title of the Regulations is the National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024.

Section 2—Commencement

This section provides that the amending Regulations commence the day after it is registered.

Section 3—Authority

This section provides that the amending Regulations are made under the Act. The power to make regulations under section 77 of the Act includes the power to amend or revoke regulations that have already been made, with any doubt about this resolved by subsection 33(3) of the Acts Interpretation Act 1901.

Section 4—Schedules

This section provides that each instrument that is specified in a Schedule to the amending Regulations is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the amending Regulations has effect according to its terms.

Schedule 1—Amendments

Item 1 – After paragraph 4.07(2)(c)

This item inserts a new paragraph 4.07(2)(ca) requiring the reporting of methods used to estimate emissions from fuel combustion and a new paragraph (cb) requiring reporting of matters set out in Part 1A of Schedule 4 to the Measurement Determination relating to the use of those methods.

Paragraph (ca) brings regulation 4.07 of the NGER Regulations into alignment with other provisions of Division 4.4 and confirm the currently applied interpretation of the NGER Regulations.

Paragraph (cb) brings regulation 4.07 of the NGER Regulations into alignment with other provisions of Division 4.4. Its inclusion would enable provision of information to increase the transparency and usefulness of data reported and published under the NGER scheme.

The new Part 1A to Schedule 4 of the Measurement Determination is introduced in the National Greenhouse and Energy Reporting (Measurement) Amendment (2024 Update) Determination 2024, which applies with the amending Regulations to the 2024-25 reporting year.

Item 2 – Subdivision 4.4.3A

This item repeals and replaces Subdivision 4.4.3A of the NGER Regulations.

 

The item relevantly inserts three new paragraphs 4.17B(2)(a), (2)(b) and (2)(c), respectively requiring reporting of (a) the methods in the Measurement Determination used to estimate scope 2 emissions emitted from the operation of a facility, (b) matters set out in Part 7 of Schedule 4 to the Measurement Determination relating to the use of those methods, and (c) the amount of scope 2 emissions estimated.

Paragraphs (2)(a) and (2)(c) bring regulation 4.17B of the NGER Regulations into alignment with other provisions of Division 4.4 and confirm the currently applied interpretation of the NGER Regulations.

Paragraph (2)(b) brings regulation 4.17B of the NGER Regulations into alignment with other provisions of Division 4.4. Its inclusion enables provision of information to increase the transparency and usefulness of data reported and published under the NGER scheme. This reporting obligation applies with the National Greenhouse and Energy Reporting (Measurement) Amendment (2024 Update) Determination 2024, which sets out the relevant reportable items in Part 7 of Schedule 4.

 

Item 3 - In the appropriate position in Part 7

This item inserts a transitional provision to provide that the amendments made by Schedule 1 of the amending Regulations apply in relation to reports under Part 3, 3E, 3F or 3G of the NGER Act for the 2024-25 and subsequent financial years. This ensures that reports for the 2023-24 financial year to be submitted by 31 October 2024 are not impacted by the changes.


 

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The National Greenhouse and Energy Reporting (NGER) scheme provides a framework for the reporting of greenhouse gas emissions, energy production and consumption and other information in Australia.

The purpose of the National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024 is to:

  • Create a provision to require the reporting of information associated with estimates of scope 1 emissions from fuel combustion using the blended fuel provisions in Part 2.6 of the Measurement Determination; and
  • Enable the inclusion of reportable items within Part 7 of Schedule 4 of the Measurement Determination to scope 2 emissions made using the location-based methods in sections 7.2 and 7.3 of the Measurement Determination.

Human rights implications

This Legislative Instrument does not engage any of the applicable human rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon Chris Bowen MP
Minister for Climate Change and Energy

Overview

The National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024 were enacted to introduce new reporting requirements under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) aimed at enhancing the transparency and accuracy of greenhouse gas emissions reporting. These regulations were made under the authority of the Minister for Climate Change and Energy, the Hon Chris Bowen MP, to complement amendments to the National Greenhouse and Energy Reporting (Measurement) Amendment (2024 Update) Determination 2024. The policy objective of these amendments is to ensure that entities report more detailed information on the methods used to estimate emissions from fuel combustion and scope 2 emissions, thereby supporting Australia’s compliance with international reporting obligations and informing domestic climate policies. The new regulations require entities to report on the methods used to estimate emissions from fuel combustion and scope 2 emissions, along with relevant details specified by Schedule 4 to the Measurement Determination. This includes the methods used to estimate scope 2 emissions, other information relating to the use of those methods, and the amount of scope 2 emissions estimated. The amendments are designed to increase the transparency and usefulness of the data reported under the NGER scheme, ensuring that Australia can meet its international reporting obligations and effectively implement domestic climate policies. These regulations commence on the day after registration, ensuring that they apply to the reporting year starting 1 July 2024.

Scope and Application

The National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024 applies to entities in Australia that are required to report greenhouse gas emissions, energy production, and energy consumption under the National Greenhouse and Energy Reporting Act 2007. These entities include corporations, prescribed persons, and prescribed facilities that meet specified thresholds for emissions and energy consumption. The Act operates on a national level and is designed to ensure that Australia meets its international climate reporting obligations under the United Nations Framework Convention on Climate Change. The Regulations amend the National Greenhouse and Energy Reporting Regulations 2008 to require additional reporting on methods used to estimate emissions from fuel combustion and 'scope 2' emissions, thereby increasing the transparency and usefulness of the reported data. The Regulations also introduce transitional provisions to ensure that reports for the 2023-24 financial year are not impacted by the changes. This legislative instrument is exempt from sunsetting provisions, reflecting its ongoing necessity for compliance with international obligations and for the continuous reporting of emissions data within Australia.

Key Provisions

The National Greenhouse and Energy Reporting Amendment (2024 Measures No. 1) Regulations 2024 (the amending Regulations) amend the National Greenhouse and Energy Reporting Regulations 2008 (the NGER Regulations) to introduce new reporting requirements for methods used to estimate emissions from fuel combustion and scope 2 emissions. These amendments are designed to enhance the transparency and usefulness of data reported under the National Greenhouse and Energy Reporting (NGER) scheme. Specifically, Section 1 of the amending Regulations provides the title of the regulations, while Section 2 specifies that they commence the day after registration. Section 3 confirms that the amending Regulations are made under the National Greenhouse and Energy Reporting Act 2007 (NGER Act), and Section 4 explains that the Schedules to the amending Regulations amend or repeal specified instruments. Under the amending Regulations, entities are required to report on the methods used to estimate emissions from fuel combustion and scope 2 emissions, as well as other relevant information specified in Schedule 4 to the Measurement Determination. This includes details about the use of these methods and the amount of scope 2 emissions estimated. The amendments are structured to ensure that they apply to reports for the 2024-25 financial year and subsequent years, without impacting reports for the 2023-24 financial year. This transitional provision is set out in Item 3 of Schedule 1 to the amending Regulations. The amending Regulations impose several obligations on the entities subject to the NGER Act. These entities must now report on the methods used to estimate emissions from fuel combustion and scope 2 emissions, in addition to the information specified in Schedule 4 to the Measurement Determination. This includes providing details about the methods used and the estimated emissions. By doing so, entities contribute to the transparency and accuracy of the data reported under the NGER scheme, which supports Australia's international and domestic reporting obligations and informs climate and energy policies. Breaches of the requirements set out in the amending Regulations may result in civil or criminal penalties, depending on the nature and severity of the breach. The NGER Act provides for various offences and penalties for non-compliance, including fines and imprisonment. However, the specific penalties for breaches of the amending Regulations are not detailed in the explanatory statement. Entities found to be in breach of their reporting obligations may face enforcement actions by the relevant authorities, which could include fines, legal proceedings, or other administrative measures. Compliance with the reporting requirements is essential to avoid these potential consequences and to ensure that entities meet their obligations under the NGER Act.

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