NGER 2nd Year Reporting 2009/10: New Participants

01 Jun 2009Archived News Climate Change Matters

The 1st of July 2009 represents the commencement of the 2nd year of the NGER Act, in which the corporate reporting thresholds have been lowered. As a result, a new tier of organisations will be required to prepare and submit an inventory for the first time. The inventory will encompass the 2009/10 reporting year and must be submitted by 31st October 2010.

 

 

The NGER Act introduced staged process for introducing mandatory energy and greenhouse reporting into Australia. The three reporting years are defined by reducing corporate thresholds that, if triggered, require the corporation to comply with the requirements of the Act.

The corporate thresholds are:

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TJ = Terajoule

The facility level threshold remains constant at 25,000 tonnes CO2-e and 100TJ of energy consumption or production.

What this means is that if you have operational control over a facility that triggers any of the facility thresholds, or if your aggregate corporate energy consumption or production or your total corporate emissions trigger any of these corporate thresholds you will need to report annual totals for:

  • Energy consumption;
  • Energy production; and
  • Greenhouse gas emissions.

It is necessary to report all energy and emissions even if you only trigger one of the thresholds.

These lower thresholds will result in a significant increase in the number of organisations that are required to report to NGER. Organisations that that will report on a single facility in the first year, may now need to extend coverage to all sites.

While we expect that the current thresholds will result in total registrations of approximately 400 companies; the reduced threshold is likely to result in an order-of-magnitude more companies being required to register and report.

Companies that have not typically captured detailed energy and greenhouse information in the past will need to deliver robust, defensible and auditable inventories in the short term. This is not a trivial exercise as our experience with the first year reporters has demonstrated.

Getting Ready

Energetics has had extensive experience in assisting companies meet the requirements of NGER for the 2008/09 reporting year. Key lessons learnt from these experiences are:

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Our experiences with Australia’s largest energy consumers and producers as well as the major greenhouse gas emitters have shown us that the most often observed gaps in energy and greenhouse reporting systems are:

  • Incomplete / insufficient supporting documentation for higher order methods used to determine total emissions and measurement criteria for specific input information.
  • NGER specifies strict standards that need to be adhered to e.g. standards for equipment metering and calibration.
    • Incomplete coverage of emissions/energy sources and contractors, note that NGER requires that you report everything, not just those streams for which you have information.
  • Material variance to other reporting information sets, for example, sustainability report.
  • Incorrect use of NGER emission calculation methodologies and incomplete supporting documentation.
  • Accidental omission or incorrect reporting of information.

We note that, if these are shortcoming in the systems of the largest companies, they are likely to represent significant gaps in the systems of smaller companies, presenting problems for those that need to report in current or future reporting years.

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