Announcement date
28/06/2024
Link to announcement
Federal Register of Legislation - National Greenhouse and Energy Reporting (Measurement) Amendment (2024 Update) Determination 2024
Problem being addressed
The problem examined is a component of the first stage of the Government’s response to the 2023 Climate Change Authority’s (CCA’s) review of the National Greenhouse and Energy Reporting (NGER) scheme. The CCA recommended changes to improve the NGER scheme’s facility-level methane emissions measurement, reporting and verification; data transparency; coverage; and administration. The examination focused on further enhancing the accuracy of fugitive methane emissions estimates from open-cut mines reported under the NGER scheme, noting NGER scheme data is part of fulfilling Australia’s domestic and international emissions reporting obligations, informing domestic climate policies and underpinning the operation of the Safeguard Mechanism.
Proposal
The proposal amends the NGER scheme legislation to require open-cut mines covered by the Safeguard Mechanism that currently report fugitive methane emissions using a basic method with minimal data inputs (Method 1) to transition over a two-year period to a more complex method requiring site-level sampling and analysis (Methods 2 or 3). The amendments are consistent with Recommendation 15 of the 2023 CCA review of the NGER scheme that recommended “Phase out Method 1 estimation methodologies for fugitive methane emissions, including as a matter of urgency for the extraction of coal in open cut coal mining.”. The Government’s full response to the review, including on further action to enhance fugitive methane emissions estimation will be published once it is finalised.
Assessed Impact Analysis outcome
Impact Analysis Equivalent
Assessment comments
The Office of Impact Analysis (OIA) does not assess the quality of reviews and documents used in lieu of an Impact Analysis (IA). Impact Analysis Equivalents (IAE) are assessed by OIA for relevance to the recommended option(s) and for the coverage of the 7 Impact Analysis questions conducted.
The OIA assessed that the options analysed in the certified review — the 2023 CCA’s review of the NGERS Scheme—and additional analysis prepared by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) to address IA questions 6 and 7 are sufficiently relevant to the proposal to meet the requirements in the Australian Government Guide to Policy Impact Analysis.
Regulatory burden
The DCCEEW estimates these measures will result in an anticipated regulatory burden, which may be as high as $100M in transitional costs to business. Noting the regulatory burden estimates for the business sector are indicative and presented as a range.