National Greenhouse and Energy Reporting Act 2007

Practically speaking, this covers mines, oil and gas operations, steel mills, cement plants, aluminium smelters, large power stations, and similar heavy industrial operations.

What must affected businesses do?

1. Register with the Clean Energy Regulator (the government agency that administers this Act)
2. Report annually on their greenhouse gas emissions, energy production, and energy consumption — due within 4 months of the end of each financial year
3. Keep records for at least 5 years
4. Stay within emissions baselines (pollution caps) if they operate a 'designated large facility' — one that emits 100,000 tonnes or more of greenhouse gases per year
5. Submit to audits by registered auditors if required

The Safeguard Mechanism — the enforcement teeth

For Australia's biggest emitters (the roughly 200+ largest industrial facilities), the Act sets hard targets:

• Each facility must stay below its individual emissions baseline (a cap set for that specific facility)
• Across all covered facilities combined, total emissions must stay under 1,233 million tonnes between 2020–2030
• By 2030, total covered emissions must fall to no more than 100 million tonnes per year
• By 2050, the target is net zero (no more than zero net tonnes per year)

If a facility exceeds its cap, the operator must either:

• Surrender carbon credits (purchased units that represent emissions reductions elsewhere), OR
• Face civil penalties (fines) — up to 2,000 penalty units for major breaches (currently around $660,000 for corporations)

Businesses in trade-exposed industries (those competing internationally, like mining and metals) get special consideration to remain competitive while transitioning.

Who runs this system?

The Clean Energy Regulator — a Commonwealth government agency — administers the Act. It maintains a public register of all registered companies, publishes their reported data, conducts audits, and enforces compliance.

Why does it matter to ordinary Australians?

• The public register means anyone can look up what major companies near them are emitting
• The Safeguard Mechanism directly drives Australia toward its climate targets (43% reduction by 2030, net zero by 2050) under the Paris Agreement
• It replaces a patchwork of different State and Territory reporting requirements — one national system instead of eight different ones
• Penalties for non-compliance mean businesses face real consequences for hiding or understating their emissions