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 (2025 Measures No. 1) Regulations 2025
The National Greenhouse and Energy Reporting Act 2007 (NGER Act) establishes the National Greenhouse and Energy Reporting (NGER) scheme, which provides a national framework for the reporting of greenhouse gas emissions, energy production, energy consumption and other information by Australian corporations. The NGER scheme provides key data to enable Australia’s international reporting obligations and inform domestic climate and energy policy.
The National Greenhouse and Energy Reporting Regulations 2008 (Principal Regulations) are made under section 77 of the NGER Act. The Department of Climate Change, Energy, the Environment and Water (Department) requires amendments to be drafted to the Principal Regulations to make hydrogen a reportable gaseous fuel type.
Under the NGER scheme’s existing accounting approach, reporters report scope 1 emissions from the combustion of the gaseous fuel they physically consume. This approach means that when renewable gas is co-mingled with other gases and distributed through shared infrastructure (for example, through shared pipelines), the claim to its consumption and the associated emissions benefit is spread across all users of the infrastructure. Renewable gas purchasers are only able to report consumption of the part share of renewable gas they physically consumed, determined in accordance with the pipeline operator’s determination or by sampling and analysing the fuel they physically receive. Stakeholder feedback has provided that this accounting approach is impeding domestic uptake of renewable gas, especially for facilities for whom renewable gas may be one of the only viable decarbonisation options.
Following recommendations of the independent Climate Change Authority in its 2023 review of the National Greenhouse and Energy Reporting Legislation, the Department proposed to introduce market-based reporting arrangements for the reporting of scope 1 emissions from the consumption of biomethane and hydrogen (together, renewable gas).
Hydrogen is currently classified in Schedule 1 of the Principal Regulations as an energy commodity. The National Greenhouse and Energy Reporting Amendment (2025 Measures No. 1) Regulations 2025 (Update Regulations) amend Schedule 1 of the Principal Regulations to reclassify hydrogen as a gaseous fuel type within the NGER Scheme. Reclassifying hydrogen as a fuel type supports its inclusion in market-based reporting arrangements.
The Update Regulations form part of a broader package of changes to the subordinate legislation of the NGER Scheme. They are necessary as they enable hydrogen to be listed as a fuel type in Part 2 of Schedule 1 of the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (Measurement Determination) by way of amendments to the Measurement Determination that will commence together with the Update Regulations.
A six-week public consultation period was conducted from 28 February 2025 on the package of the amendments to the NGER scheme subordinate legislation. The consultation included an exposure draft of proposed amendments to the Measurement Determination and a consultation paper including the substance of the proposed amendments to the Principal Regulations.
The Update Regulations are a legislative instrument for the purposes of the Legislation Act 2003.
The Principal Regulations are exempt from sunsetting under item 42A of section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015, which means that the Update Regulations are also exempt from sunsetting. The Principal Regulations are exempt from sunsetting because they are essential for the ongoing operation of the NGER Scheme, as they provide a single national framework for reporting greenhouse gas emissions, energy production and energy consumption, as well as prescribe procedural matters. Their continued existence ensures consistent and reliable environmental data collection. This data is crucial for national policy development, international reporting obligations and emissions reduction initiatives.
The Update Regulations commence on the day after they were registered on the Federal Register of Legislation.
ATTACHMENT A
Details of the National Greenhouse and Energy Reporting Amendment (2025 Measures No. 1) Regulations 2025
Section 1 - Name
This section states that the title of the Update Regulations is the National Greenhouse and Energy Reporting Amendment (2025 Measures No. 1) Regulations 2025.
Section 2 - Commencement
This section states that the Update Regulations will commence the day after the instrument is registered.
Section 3 - Authority
This section states that the Update Regulations are made under the National Greenhouse and Energy Reporting Act 2007.
Section 4 - Schedule(s)
This section states that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1—Amendments
Part 1—Main Amendments
Item 1 – Schedule 1, after table item 30
- Item 1 inserts a new table heading titled “Other gaseous fuels” and inserts item 30A below this heading, listing hydrogen in the table at Schedule 1 of the Principal Regulations.
- This aligns with the introduction of market-based arrangements for reporting scope 1 emissions from consumption of biomethane and hydrogen that have been injected into the natural gas network. To facilitate the reporting of scope 1 emissions from the consumption of hydrogen under the new market-based reporting arrangements, this amendment reclassifies hydrogen as a fuel type. Column 3 of the new item states that a nomination by the reporter is required as to whether hydrogen is a primary or secondary fuel.
Item 2 – Schedule 2, table item 64
- Item 2 repeals item 64 of the table at Schedule 1, removing hydrogen as an energy commodity. This is necessary to reclassify hydrogen as a fuel type.
Part 2—Application provisions
Item 3 – In the appropriate position in Part 7
- Item 3 inserts a new Division 7.12 at Part 7 which provides that the amendments Part 1 of Schedule 1 of the Update Regulations apply in relation to a report under Parts 3, 3E, 3F or 3G of the NGER Act for the financial year beginning on 1 July 2025 and financial year later. This aligns with the commencement of corresponding amendments to the Measurement Determination.
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 (2025 Measures No. 1) Regulations 2025
This disallowable 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 Act 2007 (NGER Act) establishes the National Greenhouse and Energy Reporting (NGER) scheme, which provides a national framework for the reporting of greenhouse gas emissions, energy production, energy consumption and other information by Australian corporations. The NGER scheme provides key data to enable Australia’s international reporting obligations and inform domestic climate and energy policy.
The amendments to the National Greenhouse and Energy Reporting Regulations 2008 (Principal Regulations) are made under section 77 of the NGER Act. The Department of Climate Change, Energy, the Environment and Water (the Department) require amendments to be drafted to the Principal Regulations to make hydrogen a reportable gaseous fuel type.
Hydrogen is currently classified in Schedule 1 of the Principal Regulations as an energy commodity. The National Greenhouse and Energy Reporting Amendment (2025 Measures No. 1) Regulations 2025 amend Schedule 1 of the Principal Regulations to reclassify hydrogen as a gaseous fuel type within the NGER Scheme. Reclassifying hydrogen as a fuel type supports its inclusion in market-based reporting arrangements.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.