22-03-11 |
Ensure subpoenas serve their purpose
11-11-09 |
NGERS Update
- 19 Nov 2009 - Insolvency Spring Training & End of year drinks (Sydney)
- 25 Nov 2009 - Directors' and Officers' duties in uncertain markets (Sydney)
- 25 Nov 2009 - Hosting AMPLA twilight seminar (Newcastle)
- 26 Nov 2009 - Current issues in confidentiality and privacy (Melbourne)
New NGERS reporting thresholds and penalties for non-compliance
November 2009
The NGERS has a system of cascading reporting thresholds to allow for a three year transition period to the final reporting thresholds in FY2010-2011.
The initial reporting thresholds are more than halved over the three year period from 2008 to 2011.
With the completion of the first reporting period, aggregate reporting thresholds for all facilities within a corporate group will be reduced in the following manner for FY2009-2010 and FY2010–2011. The reporting threshold for single facilities remains static:
| Aggregate threshold FY2008-2009 / FY2009-2010 / FY2010-2011 |
Single facility FYs2008-2011 |
|
| Emissions of CO2-e (kilotonnes) |
125 / 87.5 / 50 | 25 |
| Energy consumed (terajoules) |
500 / 350 / 200 | 100 |
| Energy produced (terajoules) |
500 / 350 / 200 | 100 |
Companies who were not caught by the first reporting thresholds must continue to monitor their emissions and energy consumption / production to ensure that their operations do not exceed reporting thresholds for the FY2009-2010 reporting period without being in a position to comply with their registration, energy and emissions monitoring and reporting obligations for that period under NGERS.
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.
It is worth noting that CEOs of corporations can be held personally liable in the event that the corporation fails to:
- register or register on time;
- report or report on time or where the report contains false or misleading information; and
- maintain adequate records to allow the corporation to report accurately on emissions and energy and to allow the Greenhouse and Energy Data Officer (GEDO) to establish compliance with NGERS obligations.
The deadline for submission of reports to the GEDO for the 2008/2009 reporting period was 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.
It is vital that CEOs and senior managers are aware of their NGERS obligations and ensure that systems are in place to accurately capture the data required to meet reporting obligations and to determine if registration thresholds have been or are likely to be met.
CEOs must carefully consider whether they are in a position to demonstrate that they have acted with due diligence to ensure that the company has complied with the NGERS. Failure to do so may leave the CEO exposed to significant penalties following a company’s contraventions.
Links to related pages:
- NGERS Update - November 2009
- NGERS Streamlining Protocol - Reducing the administrative burden
- Amendments to the NGERS
- NGERS Consultation - Audit Determination and Measurement Determination
- Conclusion - NGERS - What the changes mean for business
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