Australian renewable gas producers now have a direct pathway to federally recognised emissions credentials, following the Clean Energy Regulator’s (CER) expansion of the Product Guarantee of Origin (PGO) scheme. Effective October 12, 2026, the PGO framework officially opened applications for biogas and biomethane projects, a move set to unlock new market value and drive investment in Australia’s burgeoning renewable gas sector.
This significant policy update broadens the scope of the PGO scheme beyond its initial focus on hydrogen, allowing producers of biogas (generated through anaerobic digestion) and biomethane (produced via biogas upgrading) to verify the emissions profile of their products. The expansion provides a crucial mechanism for transparency and accountability, enabling renewable gas to be tracked and its environmental benefits clearly demonstrated across the supply chain.
Driving Investment in Renewable Gas
The PGO scheme, a voluntary framework launched in November 2025, is designed to track emissions and energy use throughout a product’s lifecycle. Its extension to biogas and biomethane creates a standardised, government-backed certification, which is expected to foster greater confidence among investors, distributors, and end-users. This federal endorsement offers a distinct advantage over existing, more localised certification schemes, such as GreenPower’s Renewable Gas Certification.
For Australian businesses, this means a clearer route to demonstrating their commitment to decarbonisation and potentially accessing new markets for their renewable gas products. Facilities seeking to participate must register with the CER and establish auditable production, delivery, or consumption profiles. This rigorous data collection ensures the integrity of the PGO certificates, covering emissions, energy use, and production volumes.
“The expansion of the PGO scheme to include biogas and biomethane is a critical step in accelerating Australia’s renewable gas market. It provides the necessary transparency and credibility for producers to unlock new value and for consumers to make informed choices about their energy sources.” — A CER spokesperson on the expanded scheme.
The policy forms a key component of the federal government’s broader Guarantee of Origin framework, established under the Future Made in Australia (Guarantee of Origin) Act 2024. This legislative backing underscores the government’s commitment to verifiable emissions reduction and supporting Australian-made clean energy. The latest expansion follows a consultation process initiated in December 2025, which also considered broadening the hydrogen pathway and adding other products like iron ore and aluminium to the scheme.
The Role of Renewable Gas in Australia’s Energy Transition
While Australia continues its rapid transition towards electrification and renewable electricity sources, renewable gas offers a complementary pathway for decarbonising hard-to-abate sectors and leveraging existing gas infrastructure. Biogas and biomethane, derived from organic waste materials, provide a circular economy solution, converting waste into valuable energy. This can reduce reliance on fossil fuels in industrial processes, commercial heating, and even for domestic use where full electrification may not be immediately feasible.
This policy development aligns with the broader national strategy to diversify Australia’s clean energy mix and meet ambitious emissions reduction targets of 43% below 2005 levels by 2030 and net zero by 2050. The ability to certify the origin and emissions intensity of renewable gas will be crucial for integrating these fuels into future energy markets and for businesses seeking to reduce their Scope 1 emissions.
For businesses and industries considering their energy future, understanding the benefits of renewable gas and its certification under the PGO scheme is becoming increasingly important. It provides an opportunity to future-proof operations and contribute to a lower-carbon economy. For more information on transitioning away from traditional gas, refer to our guide on Electrify Your Home in 2026: Real Costs, Rebates & Savings Up to $15,000+.
The Financial Incentive for Producers
The introduction of PGO certificates for biogas and biomethane is expected to create a tangible financial incentive for producers. By providing a clear, verifiable stamp of origin and emissions performance, these certificates can enhance the marketability and premium pricing potential of renewable gas. This could translate into new revenue streams for waste management facilities, agricultural operations, and energy companies investing in anaerobic digestion and gas upgrading technologies.
Furthermore, the federal certification could facilitate access to various government incentives and grants designed to support clean energy development. While specific AUD prices for PGO certificates are market-driven and will evolve, the underlying value proposition for producers lies in the ability to confidently market their product as genuinely renewable and low-emissions. Businesses exploring clean energy upgrades should also investigate broader support available, such as outlined in Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.
Comparison of Renewable Gas Certification Schemes
While GreenPower has offered a Renewable Gas Certification scheme, the federal PGO framework provides a government-backed, national standard. The distinctions are important for market participants.
| Feature | CER Product Guarantee of Origin (PGO) Scheme (Expanded) | GreenPower Renewable Gas Certification Scheme |
|---|---|---|
| Administrator | Clean Energy Regulator (Federal Government) | GreenPower (State & Territory Governments) |
| Scope | Hydrogen, Biogas, Biomethane, Iron Ore, Aluminium | Renewable Gas (Biomethane, Hydrogen) |
| Status | Voluntary Federal Certification | Voluntary State-based Certification |
| Data Rigour | Auditable emissions, energy use, production volumes | Auditable production, environmental criteria |
| Legal Basis | Future Made in Australia (Guarantee of Origin) Act 2024 | State/Territory Government Agreements |
| Market Impact | National market confidence, export potential | Domestic market recognition |
This expansion marks a strategic move by the Australian government to accelerate the deployment of a wider range of clean energy solutions and to ensure the integrity of Australia’s emissions reduction claims on a national and international stage. The coming months will see renewable gas producers assessing how best to leverage this new federal certification to enhance their operations and contribute to Australia’s energy transition.