Emissions and energy types

Greenhouse gases reported under the Greenhouse Gas Reporting (GHGR) Scheme include:

● carbon dioxide (CO2)

● methane (CH4)

● nitrous oxide (N2O)

● sulphur hexafluoride (SF6)

● specified kinds of hydrofluorocarbons and perfluorocarbons.

When estimating greenhouse gas emissions, reporters must use applicable methods under the GHGR Scheme.

Reporting obligations

There are 3 types of greenhouse gas emissions. Your reporting requirements under GHGR may vary depending on the type of emissions.

Scope 1 emissions: "direct" emissions

Scope 1 greenhouse gas emissions are emissions released into the atmosphere as a direct result of the activities at your facility. For example:

● emissions from the use of refrigerants in air conditioning units

● emissions from fuels used in transport

● fugitive emissions, such as methane leaks from the preparation of biochar, must be considered

● production of electricity by burning coal.

Scope 1 emissions are also referred to as direct emissions.

Scope 2 emissions: "indirect" emissions

Scope 2 emissions for a facility represent the emissions that were released outside your facility boundary to produce the electricity that you imported into the facility and used. 

For example, a carbon capture and utilization (CCU) technologies cement factory which uses electricity from an external electricity grid to run its business would report scope 2 emissions. In this example, the emissions are directly produced by grid-connected power stations that burn fuel to create the electricity which is then supplied to the grid (and would be reported by these power stations as scope 1 emissions). The grid electricity used by the cement factory, and the associated scope 2 emissions, would be reported by the cement factory.

Scope 2 emissions are also referred to as indirect emissions.

Scope 3 emissions: broader indirect emissions

Scope 3 emissions are indirect emissions other than scope 2 emissions. They occur outside of the boundary of your organisation as a result of your actions.

Scope 3 emissions may occur:

● upstream, such as the emissions generated in the extraction and production of fossil fuels

● downstream, such as the emissions from transport of your products.

Types of emissions

You must report scope 1 and 2 emissions.

Scope 3 emissions are not reportable under the Greenhouse Gas Reporting (GHGR) . However, you can use the Corporation Country of Registration Greenhouse Accounts Factors can be employed to estimate scope 3 emissions.

You only need to report on activities if there is an applicable method in the Greenhouse Gas Reporting (Measurement) Codes of practice.

Reporting emissions under GHGR

You can produce or consume energy, either as a fuel, or as an energy commodity.

Types of energy reported under GHGR include:

● fossil fuels and coal based products

● fuels derived from recycled materials

● biogases

● petroleum-based oils and greases

● biofuels.

Schedule 1 of the Greenhouse Gas Reporting Specifications lists fuels and other energy commodities.

Energy production

You produce energy when you either:

● extract or capture energy from natural resources, such as fossil fuels

● convert energy from one form to another, such as from solar energy to electricity.

Energy consumption

You consume energy when you use or dispose of it. This includes when energy is purposely used, such as combusting fuel to operate machinery, as well as when energy is lost, such as during the handling of energy.

Types of energy

You must report the total amount of energy. This includes the transformation of energy from one form into another.

However, you only need to report energy if there is an applicable method in the Greenhouse Gas Reporting (Measurement) Codes of practice.

To learn more download our reporting energy production and consumption guideline.

Reporting energy under GHGR