Environment and Sustainable Development 5 Minute Fix 57: NGER reporting, data centres, product lifecycle, energy efficiency

The Environment and Sustainable Development team
30 Apr 2026
5 minutes

The Environment and Sustainable Development 5 Minute Fix is your quick update on key ESD developments across Australia. This edition covers the updates to the Commonwealth's National Greenhouse and Energy Reporting Scheme, New South Whales Data Centre Consultation Paper, Product Lifecycle Responsibility Regulations 2026 NSW, Victorian Energy Updates Program, and Western Australia's interest-free loan program for nickel operations.

Commonwealth news

National Greenhouse and Energy Reporting Scheme: 2026 public consultation

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has opened a public consultation on proposed amendments to the National Greenhouse and Energy Reporting (NGER) Scheme. Submissions will close at 5:00pm AEDT on Friday 8 May 2026.

The NGER Scheme is Australia's national framework for reporting greenhouse gas emissions, energy consumption and energy production by corporations, and underpins the Safeguard Mechanism.

The proposed amendments are intended to commence on 1 July 2026, first applying to reports submitted by 31 October 2027 for the 2026–27 reporting year.

The key amendments address:

  • 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, including revisions to Methods 2, 2A, 2B and 3 covering gas desorption testing, flared emissions, mass balance approaches, natural gas transmission and distribution (including to account for hydrogen content);

  • updated treatment of methane emissions from landfills and wastewater handling; and

  • changes to scope 2 emissions reporting.

The consultation paper also provides an update on 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.

NGER reporters should review the consultation paper and exposure draft amendments to assess the impact on their reporting obligations from 2026–27 onwards, and consider lodging a submission through DCCEEW's consultation hub before the 8 May 2026 deadline.

Have your say on the proposed amendments via the department's Consultation Paper.

New Expectations for Data Centres

The Australian Government set a new policy for data centres and AI infrastructure developers (Expectations) which aims to establish a social licence for, and manage the impacts of data centres and AI infrastructure in the country. The Expectations builds on the National AI Plan which was released late last year and have implications for developers and operators of data centres and AI infrastructure, investors, organisations planning for AI-related capacity and stakeholders engaging with governments on AI and digital infrastructure policy.

The rapid acceleration of data centre policy – eg. the Parliamentary Inquiry looking into regulating data centres in NSW, draft reforms of the new technical standards by the Australian Energy Market Commission, and the NSW Consultation Paper on data centres – is caused in part by the high level of global competition for data centre investment.

The five overarching Expectations are:

1. Prioritise Australia's national interest – Data centres will be expected to act in the best interests of the Australian economy and local communities to deliver positive outcomes whilst minimizing negative impacts.

2. Support Australia's energy transition – New data centres and AI infrastructure will be expected to not increase energy prices, and to positively contribute to Australia's renewable energy transition.

3. Use water sustainably and responsibly - Data centres will be expected to minimise water use and adopt efficient cooling technologies, prioritise non-potable water and pursue circular water opportunities.

4. Invest in Australian skills and jobs – Data centre operators will be expected to create jobs, invest in the domestic workforce through apprenticeships and training, collaborate with governments, unions, education providers to address skills gaps and build skilled workers.

5. Strengthen research, innovation and local capability – Large-scale computing providers will be expected to contribute to Australian research and innovation.

NSW news

NSW Data Centre Consultation Paper was released

The NSW Government released the NSW Data Centre Consultation Paper on 27 March 2026, setting out a principles-based framework for managing data centre growth. The Government is seeking to attract data centre investment in the state. Simultaneously, 15 data centre projects worth a combined $51.9 billion were endorsed to progress through the Investment Delivery Authority (IDA), whilst approximately $40.7 billion in proposals were not endorsed to move forward as they were found to be premature or overly speculative.

The five key principles set-out in the Consultation Paper are:

  1. Data centres should enable a wider technology ecosystem that drive job creation and economic growth.

  2. Developers and operators must fund their infrastructure requirements so as not to increase prices for households.

  3. Data centres must make sustainable use of energy and water systems.

  4. Approval and compliance must be based on reliable and transparent data.

  5. Regulatory and planning settings must account for differences in size, location, and community needs.

The Consultation Paper raises significant environmental considerations including: energy grid sustainability during peak demand, the use of recycled water for cooling, cumulative impacts from clustering data centres near sensitive sites, health impacts of diesel backup generators and e-waste management. Consultation closes on 8 May 2026.

In parallel, a NSW Legislative Council inquiry into data centres has been established to scrutinise whether NSW is equipped for the scale and projected pace of data centre development, with the committee due to report by 30 September 2026.

NSW Heritage Minister announced that the Heritage Act 1977 will be modernised

Penny Sharpe, the NSW Heritage Minister, released the first-ever NSW Heritage Strategy this week in advance of upcoming reforms. The Strategy includes a five-year plan to reshape a heritage system with the intent to simplify and streamline in order to encourage activation, conservation and adaptive reuse of heritage. Changes will bring a more diverse mix of items that will be protected under the State Heritage Register including an intangible heritage program. Aboriginal communities will be partnered with to create truth-telling opportunities and better recognise significant heritage. Balancing the protection of and celebrating the history of NSW will occur alongside supporting the Government's housing commitments.

Consultation is open for the draft Statewide Community Participation Plan

In an effort to make the planning system faster, fairer and more outcome-focused, the NSW Government is proposing changes to how the community participates. The more than 100 different community participation plans across the state are being replaced by a single statewide plan which will dictate how engagement in planning decisions will occur. Two documents are available for your review and comment: a draft Community Participation Plan and a Discussion Paper. Feedback is due 5pm 3 June 2026.

NSW's first Mandatory Product Stewardship Scheme

The Product Lifecycle Responsibility Regulation 2026 (NSW) was tabled in early 2026 and establishes mandatory product stewardship (the Scheme). The Regulation was made pursuant to the Product Lifecycle Responsibility Act 2025, which establishes a general framework for product stewardship schemes. The PLR Regulation operates in addition to the existing Commonwealth "B-cycle battery stewardship scheme" which is both voluntary and industry-led. The Scheme has been introduced in an effort to address the rising issue of unsafe disposal of batteries and to ensure that brand owners are responsible for the full lifecycle of their products. The PLR Regulation is set to commence on 1 October 2026.

The PLR Regulation designates specific battery types and sizes as "regulated batteries", including:

  • batteries sized AAA, AA, C, D, 9 volt, and 6 volt lantern;

  • button batteries;

  • removable rechargeable batteries weighing 5kg or less;

  • rechargeable e-micromobility device batteries; and

  • portable power banks weighing 5kg or less.

The PLR Regulation imposes obligations on "brand owners" and establishes penalties for non-compliance. "Brand owners" are defined in the PLR Regulation as a "person responsible for bringing the regulated battery into the State for supply". Obligations imposed on brand owners include:

  • record keeping of the number, chemistry, and total weight of batteries supplied;

  • reporting obligations including both an initial notification prior to the supply of a regulated product and ongoing annual reports; and

  • a requirement to be a party to an agreement with a Product Stewardship Organisation (PSO). The PSO will manage the end-of-life aspects of the product including the provision of adequate collection points.

It is anticipated that further details will become available once a PSO is appointed. While the Scheme is the first made under the Act it is likely that other products will be captured by similar schemes in the future. We will continue to monitor these developments as the reforms move to implementation.

Victorian news

Victorian Energy updates Program

Lily D'Ambrosio, the Minister for Energy and Resources; Climate Action; and State Electricity Commission, has announced the Government will soon incentivise industrial businesses to make cleaner and more efficient energy upgrades through the Victorian Energy Upgrades program.

The program aims to combat industrial reliance on gas which leaves businesses vulnerable to global price fluctuations. This program is particularly timely given the instability in global energy trade. Businesses will be incentivised to adopt three new replacement technologies including electric thermal energy storage, upgrades to gas-efficiency and behind-the-metre biogas.

The discounts available for transitioning to the new technology will be determined by the size of the upgrade and the reduction in emissions. The Government hopes the program will substantially lower emissions. Businesses are likely to see a significant return on investment as energy bills may reduce by up to hundreds of thousands of dollars annually.

Consultation on the program commenced on 27 March 2026 and businesses are invited to make submissions on how it will meet industry needs. This program has had far-reaching success by assisting 2.4 million households and 180,000 businesses to date. Industrial businesses should monitor the rollout of the program and consider what upgrades may be suitable for your organisation.

WA news

WA nickel industry grant funds

The Cook Government is allocating $15 million for interest-free loans to assist Western Australia's nickel miners in operation, to support the potential restart of idled mines, and to start new projects.

The loans will be repayment free until either 1 July 2028 or until nickel prices exceed $US 22,000 per tonne for two consecutive quarters. Interest-free repayments will be in quarterly instalments over a two-year period following the conclusion of the interest-free period.

David Michael, the Mines and Petroleum Minister was quoted as saying "Besides the jobs and export sales it provides, WA's nickel industry is also an essential component of the State's vision of becoming a global hub for the downstream processing of battery metals". This comes on the heels of Australia and the United States signing a $8.5 billion critical minerals and rare earths framework late last year.

Details on the loan facility, eligibility criteria, application process and maximum loan per miner will be developed by the Department of Energy and Economic Development in consultation with the Department of Mines, Petroleum and Exploration and the Department of Treasury and Finance.

Nickel is a critical mineral for renewable energy technologies, including batteries for electric vehicles and energy storage systems. Clients in the renewable energy or clean technology sectors may benefit from increased nickel production, which could support the supply chain for their projects.

For clients in the mining sector, the initiative's emphasis on restarting idled mines and expanding new projects increases the potential for environmental impact assessments, rehabilitation planning, and sustainable development strategies.

Special thanks to Olivia Chudleigh (Brisbane), Harrison Emery (Brisbane), Troy Hattrick (Perth), Grace McInerney (Sydney), and Chloe Northeast (Melbourne).

Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.