Greenhouse Gases and Energy
By Energy Allies /

Greenhouse Gases and Energy

Greenhouse Gases

The greenhouse gases that are reported under the NGER Scheme include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6) and specified kinds of hydro fluorocarbons and perfluorocarbons.

When reporting emissions, energy consumption and energy production data, only those activities, fuels and energy commodities for which there are applicable methods under the NGER Scheme are reported.

Greenhouse gas emissions are measured as kilotonnes of carbon dioxide equivalence (CO2-e). This means that the amount of a greenhouse gas that a business emits is measured as an equal amount of carbon dioxide which has a global warming potential of one. For example, in 2015–2016, one tonne of methane released into the atmosphere caused the same amount of global warming as 25 tonnes of carbon dioxide. So, the one tonne of methane is expressed as 25 tonnes of carbon dioxide equivalence, or 25 t CO2-e.

What category do my emissions fall under?

There are currently three types of emissions that yours could fall under – Scope 1, Scope 2 and Scope 3.

Scope 1 Emissions

Scope 1 greenhouse gas emissions are the emissions released into the atmosphere as a direct result of an activity or series of activities at a facility level. Scope 1 emissions can also be referred to as direct emissions. Examples are:

  • emissions from the burning of diesel fuel in trucks
  • production of electricity by burning coal
  • emissions produced from manufacturing processes, such as from the manufacture of cement
  • fugitive emissions, such as methane emissions from coal mines

Scope 1 emissions are specified under the NGER legislation and must be reported.

Scope 2 Emissions

Scope 2 emissions come from indirect or purchased energy usage e.g., the emissions from using electricity in a facitlity.

For example, a power station burns coal in order to give power to its generators and in turn generates electricity. Burning the coal results in the emission of greenhouse gases. These gases are attributed to the power station as scope 1 emissions. If the electricity is then transmitted to a car factory and used there to power its lighting and various types of machinery, the gases emitted as a result of generating the electricity are then attributed to the factory as scope 2 emissions.

Scope 3 Emissions

Scope 3 greenhouse gas emissions are not reported under the NGER Scheme, but can be used under Australia’s National Greenhouse Accounts.

Scope 3 emissions are indirect greenhouse gas emissions other than scope 2 emissions that are generated in the wider economy. They happen as a consequence of the activities of a facility, but from sources not controlled or owned by that facility’s business. Some examples are production and extraction of bought materials, transportation of purchased fuels, use of sold services and products, and flying on a commercial airline by a person from a different business.

Emission Monitoring

Energy Allies is able to comprehensively monitor and measure Scope 2 emissions using market leading hardware and software that captures a granular understanding of where and how energy is being used across the facility. This data then informs the development of a roadmap to reduction, and fulfils company reporting requirements. Find out more about Energy Allies’ metering and monitoring services that can help your small business.