You will be required to acquire and surrender eligible carbon units, or pay a unit shortfall, based on the amount of covered emissions or embodied emissions, reported to the Clean Energy Regulator.
What is reported?
Liable entities must report the amount of covered scope 1 emissions or embodied emissions for which they are liable (for more information see what emissions types are in and out?).
Separate reporting requirements under the NGER Act require some entities to report on total scope 1 and scope 2 emissions and energy production and consumption data. Data reported by liable entities, in relation to their covered emissions, may be a subset of the data that the liable entity or its controlling corporation, as applicable, is required to report under the separate reporting requirements of the NGER Act.
Note, if the liable entity is required to submit multiple reports under different sections of the NGER Act, it will not be required to enter the same data into the emissions and energy reporting system (EERS) twice. Instead EERS will capture the single set of data entered by the liable entity, and use this to create the required reports.
Emissions numbers and provisional emissions numbers
Liability is based on your emissions number for a financial year. If you are liable for 35 000 tonnes of CO2-e, then your emissions number will be 35 000.
Your emissions number is the total of all your provisional emissions numbers. Your provisional emissions numbers are:
- the total covered emissions from a facility for which you are liable (due to operational control or a liability transfer certificate)
or
- your share of the total covered emissions from a facility, for which you are liable as a participant in a joint venture
or
- the total embodied emissions in an amount of natural gas for which you are liable as a natural gas supplier and/or an OTN holder.
All liable entities are required to report their provisional emissions numbers and emissions numbers to the Clean Energy Regulator by midnight, AEST, 31 October (or where this date falls on a weekend or public holiday, by the following business day) following the year to which the report relates.
Interim emissions numbers
In the first three years of the carbon pricing mechanism (the fixed price years, 2012–13, 2013–14 and 2014–15), you may also have an interim emissions number or numbers, which must be reported to the Clean Energy Regulator by midnight, AEST, 15 June (or where this date falls on a weekend or public holiday, by the following business day).
As a direct emitter you will have an interim emissions number for a facility that gives rise to a liability unless:
- a report under section 19, 22G or 22X of the NGER Act was not required in relation to the facility for the previous eligible financial year
or
- in total, the facility gave rise to provisional emissions numbers of less than 35 000 in the previous eligible financial year
or
- in total, the facility is reasonably expected to give rise to provisional emissions numbers of less than 35 000 in the current financial year.
As a direct emitter, you may calculate your interim emissions number in one of two ways. Either:
- 75 per cent of the sum of the relevant facilities' provisional emissions numbers for the previous financial year
or
- you may submit your reasonable estimate of 75 per cent of your provisional emissions numbers for the facility for the current financial year (but you may be subject to an estimation error shortfall charge if you underestimate).
As a gaseous fuel supplier or OTN holder, your interim emissions number will be the embodied emissions in the amount of gaseous fuel that you have supplied, or quoted your OTN in relation to, between 1 July and 31 March of the relevant financial year (subject to some exceptions and netting out provisions).
Similarly, from 2013-14, the interim emissions number for persons that have opted-in under the Opt-in Scheme will be the calculated as if the financial year ended on 31 March of the financial year.
A liable entity may have interim emissions numbers as a result of being a liable entity for one or more of the reasons listed above.
More information is available in the interim emissions number guideline. There are some different reporting requirements for natural gas suppliers, more information is available in the Reporting natural gas liability: Interim Emissions Number reporting guideline.
You need to log in to the online reporting system through the Client Portal to report your interim emissions number.
Emissions and energy reporting system
The new online reporting system is called the emissions and energy reporting system (EERS). Liable entities can now report their interim emissions numbers within the new system. From the 2012/2013 reporting year, EERS will be used by controlling corporations and liable entities to prepare and submit all reports required under the NGER Act. The predecessor to EERS, the Online System for Comprehensive Activity Reporting (OSCAR), will remain available to access previously submitted reports.
Information about how to report your interim emissions number is available when you login to EERS through the Client Portal.
For further information about the new online reporting system email CER‑EERS@cleanenergyregulator.gov.au.
When are reports due?
During the fixed charge years (2012–15), liable entities must report their interim emissions numbers, if required, by 15 June of the relevant financial year.
All liable entities must report their provisional emissions numbers and emissions number by 31 October after the end of the relevant financial year. This report is required during both the fixed and flexible charge years.
Do non-liable entities have to report?
If an entity registers under the NGER Act on the assumption that it will be a liable entity, and later discovers that it does not meet the relevant thresholds and criteria, it is not required to provide a report on its provisional emissions numbers and emissions number.
This differs from the requirements for a controlling corporation's total emissions and energy reporting obligations under the NGER Act. A controlling corporation that does not meet relevant thresholds is still required to submit a below threshold report under Section 19 of the NGER Act.
A controlling corporation is still required to submit a below threshold report under section 19 of the NGER Act, but does not have to submit a report in relation to its carbon liability if they do not meet the thresholds.
Pre-submission audit
The carbon pricing mechanism creates new audit responsibilities for liable entities. If your organisation is a liable entity and your emissions number exceeds 125 000 you will need to arrange a pre-submission audit report to provide assurance over your covered emissions report.
The Clean Energy Regulator encourages you to engage a registered greenhouse and energy auditor as early as possible. This will enable your auditor to plan the audit activities that will be required throughout the reporting year and will ensure that the records you maintain are auditable.
You will need to include a copy of the audit report when you submit your liable emissions report. Early engagement of your auditor will reduce the amount of work required during the period between the end of the financial year and the date your report is due (31 October).
The NGER Regulations require that:
Further information
If you have questions, please email reporting@cleanenergyregulator.gov.au.