EXPLANATORY STATEMENT
Issued by the Authority of the Minister for the Environment, the Honourable Greg Hunt MP
National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No. 1).
The National Greenhouse and Energy Reporting Act 2007 (Cwlth) established the National Greenhouse and Energy Reporting (NGER) scheme, which is a national system for reporting greenhouse gas emissions, energy consumption and energy production by Australian corporations.
The National Greenhouse and Energy Reporting (Measurement) Determination 2008 was made under sections 7B and 10 of the Act, which provides for the Minister to determine methods, or criteria for methods, for the measurement of (a) greenhouse gas emissions; (b) the production of energy; and (c) the consumption of energy.
The National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No.1) (the Instrument) will amend the National Greenhouse and Energy Reporting (Measurement) Determination 2008 to update emissions factors for the combustion of fuel, including the incorporation of updated Global Warming Potentials (GWPs) adopted by the Parties to the UN Framework Convention on Climate Change and its Kyoto Protocol.
Schedule 1 of the instrument will commence on 1 July 2015 and apply to the 2015-16 financial year. It will affect NGER reports submitted by corporations in October 2016.
Details of the amendments to the NGER (Measurement) Determination 2008 and a Statement of Compatibility with Human Rights are included in the Attachments.
This Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview of the National Greenhouse and Energy Reporting (Measurement) Determination 2008
The NGER (Measurement) Determination 2008 provides the methods for the estimation of greenhouse gas emissions and the production and consumption of energy.
The scope of the Determination follows international classification systems and includes emissions from:
- the combustion of fuel for energy;
- the extraction, production, flaring, processing and distribution of fossil fuels and carbon capture and storage;
- industrial processes where a mineral, chemical or metal product is formed using a chemical reaction that generates greenhouse gases as a by-product as well as emissions of hydrofluorocarbons and sulphur hexafluoride resulting from their use by certain industries; and
- waste disposal – either in landfill, as management of wastewater or from waste incineration .
The most significant source of emissions in Australia is from fuel combustion, which accounts for over 60 per cent of the emissions reported in the national greenhouse gas inventory.
The scope of the Determination does not include land based emissions covered by the IPCC categories ‘Agriculture’ and ‘Land Use, Land Use Change and Forestry’. Emissions from fuel combustion by land based industries are, nonetheless, covered by this Determination.
Methods of measurement
The framework supporting the emissions estimation methods specified in the Determination reflects the approaches of the Intergovernmental Panel on Climate Change (IPCC) guidelines governing the estimation of national greenhouse gas inventories, as adopted by the Parties to the UN Framework Convention on Climate Change and its Kyoto Protocol.
The Determination provides four different classes of methods for the estimation of emissions for most emissions sources.
NGER Method 1: is the National Greenhouse Accounts default method and specifies the use of default emission factors in the estimation of emissions. This is the simplest method available and, in general, emissions may be estimated by reference to activity data such as fossil fuel consumption, evidenced by invoices, and the use of specified emission factors provided in the Determination.
NGER Method 2: is a facility-specific method using industry sampling and Australian or international standards to provide more accurate estimates of emissions at facility level. Method 2 enables corporations to undertake additional measurements – for example, the qualities of fuels consumed at a particular facility – in order to gain more accurate estimates for emissions for that particular facility.
NGER Method 3: is a facility-specific method using Australian or international standards for both sampling and analysis of fuels and raw materials. Method 3 is very similar to Method 2, except that reporters must use Australian or equivalent documentary standards for sampling (of fuels or raw materials) as well as for the analysis of fuels.
NGER Method 4: direct monitoring of emission systems, either on a continuous or periodic basis. Rather than providing for the analysis of the chemical properties of inputs (or in some case, products), Method 4 aims to directly monitor greenhouse emissions arising from an activity. This approach can provide a higher level of accuracy in certain circumstances, depending on the type of emissions process; however, it is more likely to be more data intensive than other approaches.
As for Methods 2 and 3, there is a substantial body of documented procedures on monitoring practices and state and territory government regulatory experience that provide the principal sources of guidance for the establishment of such systems.
More generally, the NGER (Measurement) Determination draws on existing estimation practices wherever possible, including the use of data collected for commercial, taxation or other regulatory purposes, with the aim of maximising the use of readily validated data and minimising administrative burdens on reporters.
Consultation
A consultation draft of this Instrument was released for public comment on 17 December 2014. The Department received four submissions from stakeholders, which have not resulted in additional changes to the Instrument.
ATTACHMENT A
Details of the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No.1)
Item 1 – Name of Determination
This item provides that the title of the Instrument is the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No. 1).
Item 2 – Commencement
This item provides that the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2015 (No. 1) Schedule 1 commences on 1 July 2015.
Item 3 – Authority
This item outlines that the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the Determination) is made under sections 7B and 10 of the National Greenhouse and Energy Reporting Act 2007.
Item 4 – Schedules
Schedule 1—Amendments commencing 1 July 2015
The explanations of amendments provided below are grouped by part and division within the Instrument. Individual amendment items are referenced to the amendment number as stated in the Instrument.
Chapter 1: General
Part 1.1A Potential greenhouse gas emission embodied in an amount of natural gas
Part 1.1B Potential greenhouse gas emission embodied in an amount of gaseous designated fuel
Part 1.1A Potential greenhouse gas emission embodied in an amount of liquid designated fuel
Item | NGER (Measurement) Determination Reference | Commentary |
1 | 1.4(3) 1.4(4) 1.4(5) | Removes guidance for determining the method of measurement for estimating potential emissions, complementing the repeal of the Clean Energy Act 2011. |
2 | Part 1.1A Part 1.1B Part 1.1C | Provisions for the derivation of potential emissions under the Clean Energy Act 2011 are repealed. |
Part 2.2 Emissions released from the combustion of solid fuels
Part 2.2 updates Oxidation Factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
3 | 2.5 (3) | References to Oxidation Factor changed to 100% oxidation, in accordance with IPCC 2006 inventory guidelines incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Part 2.3 Emissions released from the combustion of gaseous fuels
Part 2.3 updates Global Warming Potential (GWP) values and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
4 | 2.22 (1) | References to Oxidation Factor changed to 100% oxidation, in accordance with IPCC 2006 inventory guidelines incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Part 2.4 Emissions released from the combustion of liquid fuels
Part 2.4 updates Oxidation Factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
5 | 2.43 (1) | References to Oxidation Factor changed to 100% oxidation, in accordance with IPCC 2006 inventory guidelines incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Chapter 3: Fugitive Emissions
Part 3.2 Coal mining – fugitive emissions
Part 3.2 updates GWP values and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
6, 7, 8 | 3.5 | Methane emission factors for gassy and non-gassy mines updated for IPCC Fourth Assessment Report (AR4) GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
9 | 3.6 (1) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
10, 11 | 3.14 3.15 3.15A | Definition of OF changed from correction factor to a destruction efficiency. This reflects the change to 100% oxidation factors under IPCC 2006 inventory guidelines incorporated into methods used to estimate Australia’s National Greenhouse Accounts, and clarifies the use of the 0.98 destruction efficiency factor. |
12 | 3.17(2) | Methane emission factors for run‑of‑mine coal extracted from the mine updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
13 | 3.20 | State based methane emission factors for run‑of‑mine coal extracted from the mine updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
14 | 3.21(1) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Part 3.3 Oil and natural gas – fugitive emissions
Part 3.3 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
15, 16 | 3.44 (2) | Methane emission factors for emission factor for gas type updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
17, 23, 27, 31 | 3.45 (1) 3.53 (1) 3.68 3.86 | Definition of OF changed from correction factor to a destruction efficiency. This reflects the change to 100% oxidation factors under IPCC 2006 inventory guidelines incorporated into methods used to estimate Australia’s National Greenhouse Accounts, and clarifies the use of `the 0.98 destruction efficiency factor. |
18 | 3.46B (1) 3.46B (4) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
19, 20, 21, 22, 24, 25, 28, 29 | 3.49 (1) 3.49 (2) 3.52 (2) 3.59 3.63 3.72 (2) 3.76 | Methane emission factors for emission factors updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
30 | 3.80 (3) | State based unaccounted for gas factors and natural gas composition factor updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Chapter 4: Industrial Processes emissions
Part 4.3 Industrial processes – chemical industry
Part 4.3 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
32, 33, 34 | 4.47 (2) | Nitrous oxide emission factor nitric acid production updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Part 4.4 Industrial processes – metal industry
Part 4.3 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
35 | 4.85 | Tetrafluoromethane emission factor updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
36 | 4.89 | Hexafluoroethane emission factor updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Chapter 5: Waste
Part 5.2 Solid waste disposal in land
Part 5.2 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
37, 38, 39, 40, 41, 42, 43, 44, 45, 46 | 5.4(1) 5.4(3) 5.4B(3) 5.4D 5.13(2)(c) 5.15(1) 5.15(4) 5.15A(3) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
47 | 5.15A (3) note (c) | Collection efficiency calculation reference updated. |
50 | 5.22(2) | Methane and nitrous oxide emission factors for biological treatment updated for IPCC AR4 GWPs incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
48, 49, 51 | 5.17AA (note 3) 5.17L (note) 5.22A – 5.22L | Provisions supporting the estimation of legacy waste for supporting emissions estimation under the Clean Energy Act 2011 repealed. |
Part 5.3 Wastewater handling (domestic and commercial)
Part 5.3 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
52, 54 | 5.25 (1) 5.25 (3) 5.26 (1) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
53, 55 | 5.25 (5) 5.26 (2) | Default methane emission factors for wastewater and sludge provided for equation updated for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
56 | 5.31(7) | Default nitrous oxide emission factors for wastewater discharged into aquatic environments provided for equation updated for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Part 5.4 Wastewater handling (Industrial)
Part 5.4 updates GWPs and adjusts non-CO2 emission factors provided as part of methodologies.
Item | NGER (Measurement) Determination Reference | Commentary |
57 | 5.42 (1) 5.42 (3) | GWP for methane provided for equation updated from 21 to 25 for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
58 | 5.42 (6) 5.42 (7) | Default methane emission factors for the treatment of sludge by the plant provided for equation updated for IPCC AR4 GWP incorporated into methods used to estimate Australia’s National Greenhouse Accounts. |
Schedule 2 Energy content factors and emission factors
Schedule 2 provides energy content factors and emission factors for the combustion of fuels.
Item | NGER (Measurement) Determination Reference | Commentary |
59 – 64 | Part 1, 2, 3, and 4 | Updates emissions factors for the combustion of fuel. Updates incorporate updated IPCC AR4 GWPs, and updates based on most recent emissions estimates contained in the National Greenhouse Accounts. |
Schedule 3 Carbon content factors
Schedule 3 provides the carbon content factors of fuels.
Item | NGER (Measurement) Determination Reference | Commentary |
65 - 68 | Part 2 and 3 | Updates are based on most recent emissions estimates contained in the National Greenhouse Accounts. |
ATTACHMENT B
Statement of Compatibility with Human Rights