Greenhouse reporting deadline looms

The corporate advisory group issued a statement warning that high energy users need to have carbon footprint measurement initiatives well under way if they want to avoid penalties.
BDO Kendalls partner Dylan Byrne said, “Many mining and other high energy users are unaware of this legislative time bomb and need to move quickly to comply with the legislation. By taking action, businesses can benefit from minimising compliance costs while maximising the economic and environmental gains”.
Under the National Greenhouse and Energy Reporting (NGER) Act 2007, organisations that exceed specified emissions thresholds are required to apply for registration with the Department of Climate Change by August 31st, 2009.
In the Queensland economy, even small open-cut mines are likely to exceed the thresholds due to the amount of energy consumed in the production process and the emissions released from the ground when the minerals are extracted.
The reporting requirement applies to individual facilities producing 25 kilotonnes (kt) of carbon dioxide (CO2) or consuming 100 terajoules (TJ) or more of energy; and for corporate groups emitting 125kt of CO2 or consuming 500TJ of energy. Following registration, full reports on energy consumption, production and greenhouse gas emissions are required by October 31st, 2009.
Byrne, who is lead partner for the firm’s sustainability advisory division, said businesses needed to establish the necessary procedures to enable both the measurement and reporting of emissions and energy usage, and determine whether they fell within the thresholds.
“Also, by reducing emissions now, via either carbon offsets, abatement or through operational improvements, businesses can reduce the number of permits required under the proposed Carbon Pollution Reduction Scheme (CPRS),” Byrne said.
“Taking a strategic approach to carbon management could result in large cost savings, rather than ignoring the issue and facing a huge potential burden in compliance costs when the CPRS is introduced.”
Byrne said companies could place themselves in a superior competitive position by seeking the appropriate professional advice to determine their carbon footprint and then assess areas of potential savings, along with undertaking the necessary strategic marketing and sales planning and identifying cash flow requirements.
“BDO Kendalls can assist clients in both measuring emissions and developing Carbon Management Plans to ensure their long-term sustainability,” he said.
For further information email: helen.pham@bdo.com.au