Kyoto Ratification
Australia has ratified the Kyoto Protocol and is now an active participant in the fight against climate change.

The big-ticket items to meet our Kyoto targets are

	20% renewable electricity by 2020
	an emissions trading scheme, which will place a cap on greenhouse gas equivalent (CO2-e) Emissions.

Carbon Emissions Trading - Business Obligations
Businesses registered to report carbon emissions are required to estimate their CO2-e emissions.

	Scope 1 emissions- Direct emissions generated while undertaking core business activities such as fuel combustion and manufacturing processes.
	Scope 2 emissions- Indirect emissions generated by the consumption of resources that support a business activity (eg. electricity, fuel, steam, heat etc.).
	Scope 3 emissions - Indirect emissions attributed to an organisation's business activities that occur outside the boundary of a facility, for example by off site 3rd party contractors.

Who will be affected?
Mandatory Reporting
The government will place carbon pollution limits on 1,000 companies under the NGER Act. It is mandatory for these companies to register and report on Scope 1 & 2 CO2-e emissions.

Voluntary Reporting
Reporting is not limited to companies under the NGER Act. Many others are reporting or planning to report emissions voluntarily by reason of their enterprise values and principles, carbon-neutral objectives or stakeholder demands.

Contractors SMEs
Importantly, many SMEs will also be required to report. Many Australian organisations now place environmental requirements on suppliers under the banner of 'sustainable supply chain management'. Further, SMEs may be required to report Scope 3 emissions on the directive of their clients who are either mandated or voluntarily registered to report.

Reporting Obligations
Reporting entities have been required to record emissions since July 2008 and develop systems or processes for reporting. Reporting entities are required to begin reporting in 2009.