Accounting shift drives emissions reduction

A report by Ember examines a shift in how fugitive methane emissions from open-cut coal mines in Australia are reported, moving from state-based averages (Method 1) to site-specific estimates (Method 2). The report finds that this accounting shift has led to a significant decrease in reported emissions, particularly in New South Wales, creating a mismatch between regulator-compiled averages and operator-reported estimates.

• Open-cut coal mines in Australia do not directly measure fugitive methane emissions; instead, they use an emissions factor multiplied by annual coal production. This is done via two methods under the National Greenhouse and Energy Reporting Scheme: Method 1, which uses state-based average emissions factors, and Method 2, which allows for site-specific estimates based on as few as three borehole samples per mining domain.
• Research from Reputex indicates that the transition from state-led emissions factors to company-led estimates has consistently reduced reported fugitive methane emissions by 65% to 70%, which impacts a mine's obligations under the reformed Safeguard Mechanism.
• The impact of the accounting shift is most pronounced in New South Wales (NSW), where the reported fugitive emissions intensity of open-cut mines is six times lower than the state-based emissions factor. In contrast, reporting in Queensland remains largely aligned with state-based factors.
• As of 2023, the Climate Change Authority estimated that 75% of reported coal mine methane emissions from Queensland and 25% from New South Wales use the site-specific accounting approach. The official state-based emissions factor for NSW in 2023 was 0.061 tonnes of methane per tonne of coal (t CO2-e/t ROM), while Queensland's was increased in 2023 from 0.023 to 0.031 t CO2-e/t ROM.

APA

Ember (2025). Accounting shift drives emissions reduction. https://ember-energy.org/chapter/accounting-shift-drives-emissions-reduction/

Chicago

Ember. Accounting shift drives emissions reduction. 2025. https://ember-energy.org/chapter/accounting-shift-drives-emissions-reduction/.

Wikipedia

{{cite report |author=Ember |title=Accounting shift drives emissions reduction |date=27 March 2025 |url=https://ember-energy.org/chapter/accounting-shift-drives-emissions-reduction/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025accounting, author = {{Ember}}, title = {{Accounting shift drives emissions reduction}}, institution = {Ember}, year = {2025}, month = mar, url = {https://ember-energy.org/chapter/accounting-shift-drives-emissions-reduction/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }