Why NGER Compliance Matters
Why NGER Compliance Matters
If your business operates in Australia and has significant energy consumption or emissions, you may be required to comply with the National Greenhouse and Energy Reporting (NGER) Scheme. Introduced in 2007, NGER provides a standardized framework for measuring and reporting greenhouse gas (GHG) emissions, energy production, and consumption. Compliance is not just a regulatory necessity—it’s a key step toward credible sustainability and risk management.
Failing to comply can result in penalties from the Clean Energy Regulator, reputational damage, and missed opportunities for operational efficiencies. So, what does NGER compliance involve, and how can businesses approach it strategically?
Who Needs to Report Under NGER?
NGER applies to corporations that meet certain emissions or energy thresholds. For the 2023–24 reporting year, the key thresholds are:
- 50,000 tonnes or more of CO2-e emissions (corporate group level)
- 200 terajoules or more of energy consumption
- 25,000 tonnes or more of CO2-e emissions (facility level)
- 100 terajoules or more of energy consumption per facility
Industries commonly impacted include manufacturing, mining, transport, energy generation, and agriculture.
Steps to Achieve NGER Compliance
1. Assess Your Reporting Obligations
Start by reviewing your energy use and emissions. If your business approaches the NGER thresholds, proactive assessment is essential. You can use the Clean Energy Regulator’s emissions estimation methodologies to determine whether you meet the reporting criteria.
2. Gather Accurate Data
Data integrity is critical. NGER requires businesses to report:
- Scope 1 emissions (direct emissions from owned or controlled sources)
- Scope 2 emissions (indirect emissions from purchased electricity)
- Energy consumption and production
A robust data management system ensures accuracy and audit readiness.
3. Use NGER-Approved Calculation Methods
NGER specifies different methodologies for emissions measurement, including:
- Direct measurement (e.g., emissions monitoring systems)
- Facility-specific factors
- Default emission factors (NGER Determination 2024)
Choosing the right method ensures compliance and helps identify efficiency improvement opportunities.
4. Lodge Your Report on Time
Reports are due annually by 31 October. Businesses must submit reports via the Emissions and Energy Reporting System (EERS).
Failure to report correctly or on time can lead to substantial penalties—so setting up an internal reporting timeline is crucial.
Beyond Compliance: Leveraging NGER Data for Sustainability
Complying with NGER isn’t just about avoiding penalties—it’s an opportunity to drive real carbon reduction strategies. Here’s how:
- Identify efficiency gains: Analysing energy consumption can highlight areas for cost savings.
- Set Science-Based Targets: Data from NGER reporting can support credible SBTi-aligned decarbonisation goals.
- Improve ESG reporting: Investors and stakeholders increasingly demand transparent emissions data.
- Prepare for future regulations: Australia’s corporate climate disclosure laws are evolving. Early compliance gives businesses a competitive edge.
How Aethiro Can Help
Navigating NGER requirements can be complex, but Aethiro simplifies the process:
✅ NGER pre-audits & compliance support
✅ Data collection & emissions calculation (NGER factors applied)
✅ GHG reduction strategies & cost-effective sustainability roadmaps
We ensure your reporting is accurate, efficient, and aligned with future climate goals.
📩 Need help with NGER compliance? Contact us for a tailored assessment.
Disclaimer: Aethiro provides carbon reporting and sustainability advisory services. For legal or financial implications of non-compliance, please consult a qualified professional.