A policy change has cemented the role of renewable gas in Australia’s energy future.
Renewable gas has exciting potential for the energy industry. It’s carbon-neutral, largely compatible with existing gas infrastructure, and scientific efforts increase its viability every year. But it’s comeuppance has been dogged by a policy issue: once blended into natural gas infrastructure, any emissions savings aren’t recognised by the National Greenhouse and Energy Reporting Scheme (NGERS).
This means that companies wishing to reap tangible benefits from using renewable gas must to source it directly from producers. It’s an unnecessary and onerous hurdle standing in the way of progress to net zero.
And luckily, it’s set to change.
From 1 July, the NGERS will recognise the emissions reductions from certified renewable gases, such as biomethane or hydrogen, when it is blended into existing gas infrastructure. This market-based approach gives users a clear and credible way to reduce emissions while continuing to rely on the convenience and reliability of Australia’s gas infrastructure.
The change enables the recognition of renewable gases transported in shared gas infrastructure, providing the policy certainty needed to kickstart investment in carbon-neutral gases. It lays the foundation for a carbon-neutral gas market while also enabling renewable gas producers, pipeline operators, and end users to participate in the transition together.
APGA chief executive officer Steve Davies said the changes to NGERS shows the Federal Government recognises renewable gas is not just a future concept – but a real, near-term solution to help decarbonise gas.
“This is a welcome move. It creates a pathway for users to cut emissions, while making full use of the infrastructure already in place to deliver it from producers to customers,” Davies said.
“While well-established internationally, renewable gas industry is still in its infancy in Australia. Like solar and wind in the early 2000s, it needs the right policy settings to grow, and this common-sense change is a big step in the right direction.”
Importantly, this national reform lays the foundation for emerging state-level initiatives, such as Victoria’s proposed Industrial Renewable Gas Guarantee, which aim to provide long-term certainty for manufacturers and other users seeking low-emissions gas options. A recognised certificate-based system gives governments the tools they need to support emissions targets without compromising affordability, choice or energy reliability.
Similar schemes are already in place overseas, providing proven models for Australia to follow. In Denmark, a certificate framework has helped biomethane grow to nearly 40 per cent of the country’s gas supply in 2025.
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