Key Point
- You need to know if you have to register your business and report on the greenhouse gas emissions, energy consumption and energy production from your business.
The first reporting period under the National Greenhouse and Energy Reporting System (NGERS) commences on 1 July 2008 and you need to know if you have to register your business and report to the Greenhouse and Energy Data Officer (GEDO) on the greenhouse gas (GHG) emissions, energy consumption and energy production from your business.
The NGERS legislative framework consists of the National Greenhouse and Energy Reporting Act 2007 and the National Greenhouse and Energy Regulations, which will not be released until June 2008. The Emissions and Energy Methodologies Legislative Instrument (Technical Guidelines) and External Audit (Audit Act) are also still being developed.
The NGERS was developed to:
- ensure robust and transparent GHG emissions and energy reporting to underlie the Australian Emissions Trading Scheme (AETS);
- create a single, streamlined national reporting point for GHG emissions and energy data for use by Commonwealth, State and Territory governments; and
- ensure Australia's international GHG emissions reporting obligations are met.
Do you need to register and report?
If you are a Corporate Group that meets the Group Level Threshold or if you have Operational Control of a Facility that meets the Threshold, you must register with the GEDO by 31 August 2009 and report data in the manner and form to be prescribed by 31 October 2009 in respect of the first reporting period (1 July 2008 to 30 June 2009).
A Corporate Group consists of any "constitutional corporation" that does not have a holding company incorporated in Australia, and includes its subsidiaries, all joint ventures in which it is a participant, and all partnerships of which it is a partner. If the constitutional corporation does have a holding company incorporated in Australia, then the constitutional corporation will be a subsidiary in a Corporate Group that consists of that holding company plus the subsidiaries of that holding company, and their joint ventures, and partnerships. A "constitutional corporation" is any corporation over which the Commonwealth Government has legislative competence. This will usually include companies, and also other corporations (including universities and state government corporations) that engage in trading as a significant part of their activity.
A Facility is an activity, or a series of activities, that produces GHG emissions or energy, or consumes energy, that forms a single undertaking or enterprise. A may consist of one principal productive activity and any additional activities occurring at that site. The GEDO may declare an activity to be a Facility.
You have Operational Control of a if you have authority to introduce and implement operating policies, health and safety policies, and/or environmental policies for the or if the GEDO declares you to have of that I
If you are in a joint venture or partnership, you may nominate a Responsible Entity to report on the Facility on behalf of the joint venture or partnership.
Even if you do not meet the criteria above you may still need to register if you are undertaking or proposing to undertake a project designed to remove or reduce GHG emissions. A report on the GHG project must be submitted to the GEDO most likely before 31 October for a project undertaken the previous financial year.
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What are the 2008 - 09 Thresholds? |
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Year 2008 - 09 |
Corporate Group Level Threshold |
Facility Level Threshold |
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100 terajoules |
125 kilotonnes of CO2-e |
25 kilotonnes of CO2-e |
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Energy consumption |
500 terajoules |
100 terajoules |
|
Energy production |
500 terajoules |
100 terajoules |
The Corporate Group Level Threshold will reduce over the following two years, but the Facility Level Threshold will remain the same.
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2009 - 10 and 2010 - 11 Corporate Group Level Thresholds |
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Corporate Group Level Threshold |
2009 - 10 |
2010 - 11 |
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Greenhouse Gas emissions |
87.5 kilotonnes of CO2-e |
50 kilotonnes of CO2-e |
|
Energy consumption |
350 terajoules |
200 terajoules |
|
Energy production |
350 terajoules |
200 terajoules |
Do I need to report if don't meet all the Thresholds?
If you meet any one of Corporate Group Level Thresholds, you must submit a report.
If you have a Facility that meets one of the Facility Level Thresholds but you don't meet any Corporate Group Level Thresholds you need only report on those Facilities that meet any Threshold.
If you register, you must report regardless of whether or not you meet any Threshold, however you only need to report that you don't meet any you do not need to submit a detailed report.
What if don't register or report?
You may incur a penalty of up to $220,000 if you need to register and you do not register. You may also receive this penalty if you are required to report and you do not report. Any continuing contravention may incur a penalty of up to $11,000 per day for each contravention.
Chief Executive Officers may be held personally liable for any contravention.
What do you need to do now?
You need to:
- identify your Corporate Group
- determine if you have Operational Control of any Facilities
- consider nominating a Responsible Entity if you are in a joint venture or partnership
- assess your Corporate Group's GHG emissions, energy consumption and energy production
- put in place a procedure (and, if necessary, contractual requirements) so that any suppliers, contractors or other sub-operators that have knowledge of your emissions, energy consumption and/or energy production are obliged to provide you promptly with the information necessary for you to meet your NGERS responsibilities
- register if you think you may reach a Threshold, after 1 July 2008; and
- seek advice to ensure that you are compliant with NGERS.
The Regulations, Technical Guidelines and Audit Act have not yet been released. We will update you as to your obligations under these instruments once they are available. Please contact us if you would like any further information as to how NGERS will impact on your business.
Further information on NGERS including answers to frequently asked questions can be found in the last edition of Carbon Insights.
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.