Date posted: 24/09/2025

Understanding the NGER Act A Foundation for Climate-Related Disclosures

The National Greenhouse and Energy Reporting Act 2007 (NGER Act) provides a national framework for reporting greenhouse gas emissions, energy production and energy consumption. As Australia prepares for mandatory climate-related disclosures, understanding the NGER Act is essential for finance professionals.

Climate-related disclosure regime

Whether an entity has met or exceeded an NGER threshold is one of the factors that applies in determining whether an entity falls within the climate-related disclosure regime under the Corporations Act 2001. Other factors include revenue, assets and employees.

Under the climate-related disclosures regime:

Group 1 entities include NGER reporters that meet specific thresholds such as emitting 50,000 tonnes or more of CO₂-e annually. These entities must begin climate-related disclosures from the first annual reporting periods starting on or after 1 January 2025.
Group 2 entities include all other NGER reporters. These entities must begin climate-related disclosures from the first annual reporting periods starting on or after 1 July 2026.

NGER Act registration

Under the NGER Act a controlling corporation is defined as the highest-level Australian entity in a corporate group. A controlling corporation must register under the NGER Act if they meet either of the following thresholds:

Corporate threshold: applies where a controlling corporation emits 50,000 tonnes or more of CO₂ equivalent (scope 1 and 2), or produces or consumes 200 terajoules or more of energy across all facilities.
Facility threshold: applies where a single facility emits 25,000 tonnes or more of CO₂ equivalent or produces or consumes 100 terajoules or more of energy.

For more information on NGER thresholds, visit the Clean Energy Regulator’s (CER) assess your obligations page. This page also explains how to identify a controlling corporation, define facilities and calculate whether a threshold has been met.

Organisations will generally exceed the energy consumption NGER threshold before they exceed the Scope 1 and 2 emissions thresholds. Energy threshold calculations don’t just cover electricity, they also include liquid, gaseous, solid and other fuel types. For example, the use of diesel in vehicles is included in an organisation’s energy consumption calculations.

Once registered, entities must report annually to the CER. The CER publishes a range of guides and videos to assist reporters to meet their obligations.

The CER’s compliance approach emphasises education, monitoring and enforcement. It supports entities in improving data quality and governance, which are key elements of climate-related disclosures.

For enquiries, contact the CER on 1300 553 542 or by emailing [email protected].