Canberra opens NGER reporting review as government sets expectations for data centres
Australia is moving on two fronts to tighten climate reporting and manage the footprint of digital infrastructure. The Department of Climate Change, Energy, the Environment and Water has opened public consultation on proposed amendments to the National Greenhouse and Energy Reporting (NGER) Scheme, while the Australian Government has set new expectations for developers of data centres and AI infrastructure.
Submissions on the NGER changes close at 5:00pm AEDT on Friday 8 May 2026. The proposals are intended to commence on 1 July 2026 and would first apply to reports submitted by 31 October 2027 for the 2026–27 reporting year. The NGER Scheme is Australia’s national framework for corporate reporting of greenhouse gas emissions, energy consumption and energy production, and it underpins the Safeguard Mechanism.
According to the consultation paper, the draft amendments include new reporting provisions for renewable fuels, including co‑processed liquid fuels; updates to several technical measurement methods for fugitive emissions from coal mines and oil and gas operations, with revisions to Methods 2, 2A, 2B and 3 covering gas desorption testing, flared emissions, mass balance approaches, and natural gas transmission and distribution (including to account for hydrogen content); and an updated approach to methane emissions from landfills and wastewater handling.
The paper also outlines the NGER Scheme’s forward work program, including a review of Method 2 for open cut coal extraction emissions, the Expert Panel on Atmospheric Measurement of Fugitive Methane Emissions, and the Controlled Methane Release Study. The department is inviting submissions through its consultation hub by the 8 May deadline.
Separately, the Australian Government has set a new policy of “Expectations” for data centres and AI infrastructure developers, aimed at establishing a social licence and managing impacts.
The Expectations builds on the National AI Plan released late last year and has implications for developers and operators, investors, organisations planning for AI‑related capacity, and stakeholders engaging with governments on AI and digital infrastructure policy.
The policy push comes as data centre regulation accelerates, amid global competition for investment and concurrent processes including a Parliamentary Inquiry into regulating data centres in New South Wales, draft technical standards reforms by the Australian Energy Market Commission, and an NSW consultation paper on data centres.
Under the Expectations, data centres are expected to prioritise Australia’s national interest and deliver positive outcomes for local communities; support Australia’s energy transition by not increasing energy prices and contributing positively to renewable energy uptake; use water sustainably by minimising consumption, adopting efficient cooling technologies, prioritising non‑potable sources and pursuing circular water opportunities; and invest in Australian skills and jobs through apprenticeships, training and collaboration with governments, unions and education providers to address skills gaps.
Other developments flagged include the NSW Product Lifecycle Responsibility Regulations 2026, a Victorian Energy Updates Program, and Western Australia’s interest‑free loan program for nickel operations. Further details on those initiatives were not provided in this update.