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NGERS update

November 2009

The National Greenhouse and Energy Reporting Scheme (NGERS) has been in operation for just over 12 months and the first reporting period ended on 30 June 2009.

Registrations for corporations that exceed the reporting thresholds were required by 31 August 2009 and registered corporations were required to report on emissions and energy data for FY2008/2009 by 31 October 2009.  A recent investigation by the Australian Financial Review suggested that as many as 100 controlling corporations failed to meet the deadline – meaning that both the companies and their CEOs could face significant penalties1.

The failures have been found to arise from, confusion over new reporting rules, insufficient time allowed to have reports reviewed and teething problems with new monitoring technology.

The purpose of this Update is to revisit some of the key obligations and look at recent developments.

New NGERS reporting thresholds and penalties for non-compliance

Significant penalties apply for non-compliance with the NGERS with maximum civil penalties of $220,000 and daily penalty provisions for continuing offences. CEOs can also be liable.  Read more >>

NGERS Streamlining Protocol - Reducing the administrative burden

In order to address concern about the administrative burden placed on corporations to report greenhouse and energy data, State and Federal Governments have developed the National Greenhouse and Energy Reporting Streamlining Protocol.  Read more>>

 Amendments to the NGERS

The NGERS has been in operation for only twelve months yet the legislation has been subject to a number of amendments – most of which have been minor amendments of a housekeeping nature.  Read more>>

NGERS Consultation - Audit Determination and Measurement Determination

Consultation drafts of the National Greenhouse and Energy Reporting (Audit) Determination 2009 (Audit Determination) have been released by the Department of Climate Change. Submissions on preliminary experiences with the Energy Reporting (Measurement) Determination 2008 (Measurement Determination) have been called for recently. Read more>>

Conclusion - NGERS - What the changes mean for business 

  • The commencement of FY2009/2010 sees a significant reduction in the aggregate emissions and energy thresholds for NGERS registration.
  • Companies must be mindful of their likely emissions and energy use/production for this period and regularly monitor these figures against the reduced thresholds.
  • If data is not accurately gathered throughout the financial year and the registration threshold is crossed, companies may not be in a position to meet their reporting obligations – exposing both the company and its CEO to liability.
  • Amendments to the NGERS arising from the CPRS and reduced thresholds will see a significantly greater number of companies crossing the liability threshold.
  • The complex nature of the obligations arising under the NGERS has seen many companies not meet deadlines for obligations under the NGERS. Such a significant number of contraventions may result in the GEDO considering enforcement action to send out a clear message about the importance of compliance.

For further information on NGERS or climate change issues, please contact the author:

Carlo Zoppo | Senior Associate
Sparke Helmore Lawyers | Sydney
p:   61 2 9373 3592
e:  carlo.zoppo@sparke.com.au

Footnotes

1.  Connors E and Smith P (2009), ‘CEOs face big climate fines’, Australian Financial Review, 31 October 2009 

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