Australia Updates Reporting Requirements and Recognizes Renewable Gas, Including Hydrogen
Key Ideas
- Companies in Australia can now report scope 1 emissions from biomethane and hydrogen consumption with renewable gas certificates, starting July 2025.
- New product guarantee of origin certificates and renewable gas guarantee of origin certificates will be allowed for reporting.
- Hydrogen has been reclassified as a fuel type in the National Greenhouse and Energy Reporting scheme.
- Changes also include updates to emission factors for gas flared in oil and gas operations, affecting facilities covered under the safeguard mechanism.
The Australian government has announced updates to the National Greenhouse and Energy Reporting (NGER) scheme, enabling companies to report scope 1 emissions from the consumption of biomethane and hydrogen. This will require eligible renewable gas certificates to support the reported amounts of renewable gas consumed. Companies can use product guarantee of origin (PGO) and renewable gas guarantee of origin (RGGO) certificates under specified schemes for this purpose. The changes are part of recommendations made by Australia's Climate Change Authority (CCA) to improve emissions reporting. These updates, effective from July 2025, will allow companies to report the benefits from renewable gas purchases. Additionally, hydrogen has now been reclassified as a fuel type in the NGER scheme, distinguishing it from its previous classification as an energy commodity. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) will monitor the use of biomethane for ammonia and hydrogen production and may revisit technical rules in future updates. Furthermore, adjustments to emission factors for gas flared in oil and gas operations were announced, with considerations for facilities covered by the safeguard mechanism. The Clean Energy Regulator has the authority to adjust facility baselines if the revised factors significantly impact reported emissions. Overall, these updates mark a positive step towards enhancing emissions reporting and recognizing renewable gas, including hydrogen, in the Australian energy sector.