ESG Snapshot: Issue 100

This week's highlights include:

• Mining review. The NSW government will review mining and environmental legislation to ensure it doesn't impede productive post-mining land use.
• Urgent reform. Ken Henry has called for urgent reform of the EPBC Act, in a speech to the National Press Club.
• 'A swindle'. Barnaby Joyce has called the renewable energy industry a swindle, in evidence to a NSW parliamentary inquiry.
• Glencore failures. A Glencore coal mine has had its EPBC approval varied, after failing to satisfy previous conditions.
• Bioenergy approval. NSW has approved a bioenergy facility that will halve fossil gas use at a brickworks.
• New gas code. A committee advising the NT government has recommended a new code to reduce approval times for onshore gas.
• Transition guidance. ACSI and the AICD have released new guidance for boards on transition planning.
• Less interest in hydrogen. There has been a significant drop in investor interest in green hydrogen, says the Clean Energy Investor Group.
• Nature tax breaks. Direct payments might be better than tax breaks to reward farmers for nature protection, says the Productivity Commission.
• Incoming #1. The Productivity Commission has set a date for releasing its interim net zero report.
• Incoming #2. The NSW Net Zero Commission will this week publish submissions received in response to its recent consultation.

ESG Snapshot - powered by the Business Council for Sustainable Development Australia and curated by ESG communications and content consultancy Earthed.

The Federal Court has handed down its judgement in the case of Pabai Pabai & Paul Kabai v Commonwealth of Australia, brought by two Torres Strait Islander Traditional Owners.

The Torres Strait Islanders unsuccessfully argued that the federal government owed a legal duty of care to protect Torres Strait Islanders and their culture from the harmful effects of climate change.

Commentary on the case includes articles here and here.

The Australian Council of Superannuation Investors (ACSI) and Australian Institute of Company Directors (AICD) have launched new guidance for boards on organisational transition planning.

The guidance includes sections on integrating the climate transition into core business strategy, transition planning and directors' duties, and board leadership and transition planning.

The Clean Energy Investor Group has released its latest Clean Energy Outlook, based on its annual member survey.

NSW has topped Australian states for investment potential, with Queensland slipping to second place. Onshore wind remains the top-ranked technology for investment, followed closely by batteries, then solar.

Offshore wind has moved up the ranks from sixth to fifth place for investment potential, as government support strengthens. 

Green hydrogen, which previously captured investor interest, "has seen a significant drop in the rankings", falling to seventh place, the report says.

Transmission delays and state planning process ranked as the largest obstacles t0 clean energy investment in 2025, follow by EPBC processes.

The Productivity Commission will on August 3 release its interim report on investing in cleaner energy and net zero.

Tax concessions for farmers who enter into conservation covenants have been in place for many years, acknowledges a new Productivity Commission research paper on tax arrangements for protecting biodiversity on farms.

However, tax arrangements for farm activity are complex, and the value of income tax deductions to farmers contemplating covenants is uncertain, the paper says.

"For many farmers, the tax arrangements likely mean that they would face an increased tax liability in addition to a financial loss from placing a conservation covenant on part of their land," the paper says.

"Our analysis strongly suggests that tax arrangements are not providing an economic incentive for farmers to formally protect biodiversity on their properties beyond what they may have done because of their environmental and other values," it says.

"The South Australian government has recently passed legislation that contains provisions for the Minister of Environment to pay the owner of the land where a biodiversity agreement (operating in perpetuity) is in place an amount in respect of the decrease in the value of the land resulting from the execution of the biodiversity agreement," the paper says.

"While the tax implications of such payments are not yet clear, these provisions for a direct payment seem to bypass some of the limiting conditions that face farmers
in trying to recoup this loss as an income tax deduction," it says.

Consultation opportunity - sustainable investment product labelling. The federal government has released a paper on policy options for a possible sustainable financial product labelling framework.

The labels would help investors identify, compare, and make informed decisions about sustainable investment products.

"A more robust and clear product labelling framework will help investors and consumers invest in sustainable products with confidence and help tackle greenwashing," Treasure Jim Chalmers said.

Comments are due by 29 August.

Those so far receiving invitations to the Treasurer's productivity summit in August include Kerrie Schott (AGL director and chair of the Carbon Market Institute), Ken Henry (chair of the Australian Climate and Biodiversity Foundation), Ben Wyatt (Woodside Board member), and Innes Wilcox (chief executive of the Australian Industry Group).

In the lead-up to the productivity summit that will take place in August, Resources Minister Madeleine King has held two industry-specific roundtables on productivity.

One of the meetings was with the traditional resources sector, and the other was with industries in the critical minerals and rare earths sector.

Environment Minister Murray Watt has this month varied conditions attached to the EPBC approval for the Glencore-operated United and Wambo open cut coal mine near Singleton, in NSW.

The variations were imposed after Glencore failed to implement management plans, failing to retire biodiversity offset credits, failing to meet reporting requirements, and failing to notify the department of modifications to the project's NSW approval conditions.

The federal government has awarded $76 million to 54 projects, under its Climate-Smart Agriculture Program.

The Australian Energy Market Operator has published its Engineering Roadmap FY2026 Priority Actions report, which outlines 29 priority actions for the year ahead to facilitate higher renewable and battery storage participation in the NEM and SWIS.

The report also outlines AEMO's progress against its FY2025 priority actions.

CSIRO has launched the National Energy Analysis Centre (NEAC) – which will combine real-world anonymised energy data from households and businesses with state-of-the-art energy system modelling. 

Meanwhile, CSIRO has also spun-off a new company - Eclipse Ingredients - which will use an advanced fermentation-based process to efficiently produce new ingredients from yeast instead of animal sources.

Catherine Bremner has been appointed to the Board of Accounting for Nature.

Bremner was chief strategy officer at Impax Asset Management, where she led corporate and digital strategies, and also directed the UK Department for Business, Energy & Industrial Strategy's international energy program and climate finance portfolio.

She previously held senior roles at ANZ as global head of environmental sustainability, Low Carbon Australia, and the UK Carbon Trust.

Jubilee Australia, in conjunction with the Australian Conservation Foundation and the Fossil Free Japan Coalition, has published a report on political and corporate interests in Japan and South Korea that are underwriting and benefiting from the expansion of Australia's gas industry.

Ken Henry, chair of Australian Climate and Biodiversity Foundation, has delivered a speech at the National Press Club on how national environment laws can help restore nature and power the net zero economy.

Anthesis has released a new report on The Cost of Silence, which examines whether communicating ESG efforts delivers real financial and reputational return.

Open consultations:

• The Emissions Reduction Assurance Committee is inviting comments on whether to remake four ACCU methods that have either sunsetted, or will do so shortly - land and sea transport, reforestation and afforestation, source separated organic waste, and beef cattle herd management. Comments are due by 4 August.
• DCCEEW is consulting on the merits of running Capacity Investment Scheme tenders for aggregations of small energy projects and technologies. Comments are due by 5 August.
• DCCEEW is consulting on two aspects of consumer energy resources. The two aspects are data sharing, and redefining roles for market and power systems operations. Submissions are due by 20 August.
• Offshore carbon capture and storage. DCCEEW is consulting on three offshore CCS guidance documents. Comments are due by 12 September.

The latest ‘Track Changes’ podcast from Earthed is a 'road trip' around Australia - covering climate change, nature, and waste. It includes a chat with SA deputy premier Susan Close on SA's new biodiversity law, as well as a Mount Isa update from Next Economy CEO Lizzie Webb, and insights from A2EP CEO Jarrod Leak on Victoria's efforts to cut fossil gas use. On Spotify, Apple, and YouTube.

A new Queensland law took effect last Friday that requires proponents of large-scale clean energy projects to finalise community benefit agreements before they can apply for environmental assessment.

Deputy Premier Jarrod Bleijie described the new law as "nation leading".

Brisbane District Court has sentenced Queensland cotton farmer John Norman to a maximum nine and a half years in prison, with a three-year non-parole period, for his role in an $8.7 million water fraud, reports the ABC.

At its peak, Norman Farming controlled more than 18,000 hectares of land around the headwaters of the Murray-Darling Basin, south-west of Brisbane.

A Queensland Manufacturing Advisory Council, established by the state government, met for the first time last week.

Open consultations:

• The Queensland government has launched a statutory review of the environmentally relevant activity (ERA) standards that form part of the Great Barrier Reef protection regulations for agriculture. Comments are due by 8 August.

Federal politician Barnaby Joyce MP has told a NSW inquiry that "the whole intermittent power issue is a swindle".

Joyce told the inquiry into the impact of Renewable Energy Zones on regional communities that "they say renewable when we all know they end up as landfill".

"It's happening because there is a massive pecuniary benefit going to a select few," Jones said.

(Starting at 1 hour 46 minutes in this video of the hearing.)

The NSW government has awarded a total of $26.2 million to 13 projects through the commercial readiness stream of its Clean Technology Innovation grants program.

Funded projects include a a Hunter-based demonstration plant to assess the feasibility of a commercial lithium battery recycling refinery. 

Grant opportunity - heat pumps. The NSW government has launched a $1 million grants program to assist businesses to investigate the feasibility of energy-efficient heat pump technology.

The Heat Pump Feasibility Grants will provide up to $30,000 to cover 75% of project costs to support heat pump feasibility studies.

The NSW government has tabled its response to a parliamentary committee inquiry into beneficial and productive post-mining land use.

The response says the NSW government will review the Mining Act, Environmental Planning and Assessment Act and the Protection of the Environment Operations Act "to ensure they facilitate opportunities for post-mining land use while ensuring that land disturbed by mining is progressively rehabilitated to a safe and stable state".

The review will consider potential reforms to the Mining Act and related policies to clarify mine closure requirements.

"A task of the Future Job and Investment Authority will be to closely monitor mine closure and transition processes and map these outcomes on different sites as they relate to the planning system to ensure these remain fit for purpose, contemporary and efficient," the response says.

The review into the legislation will be completed by June 2026.

The NSW government has granted approval for a new $81.4 million bioenergy facility in Horsley Park that will produce renewable gas by anaerobically digesting up to 150,000 tonnes of organic waste a year.

The renewable gas will be used at Austral Bricks' Horsley Park brickworks, substituting for about 50% of its current fossil gas use.

Austral Bricks is partnering with renewable energy company Delorean Corporation, to construct and operate the bioenergy facility.

The NSW Net Zero Commission will on Thursday publish submissions received in response to its 2025 consultation paper.

Barnaby Joyce was a witness at a hearing last week of a NSW parliamentary inquiry into the impact of renewable energy zones on communities.

The NSW EPA says Coles and Woolworths have now removed the stockpiles of soft plastic that resulted from the collapse of the REDcycle scheme in 2023, and more than 90% of the plastics are on track to be recycled.

A total of 3,739 tonnes of the 4,102 tonnes of stockpiled plastics have been sent to recycling processors.

The NSW Reconstruction Authority will next month offer more Northern Rivers flood-zone homes for auction and relocation, after a strong community response to the first two home relocation auctions.

A total of 45 flood-affected properties in the Northern Rivers have already been auctioned for relocation.

All the homes earmarked for relocation have been purchased by the Authority through the buyback stream of the $880 million Resilient Homes Program, which is jointly funded by the NSW and federal governments.

Consultation opportunity - NSW electricity and gas markets. In this year's monitoring report on the retail and gas markets in NSW, the Independent Pricing and Regulatory Tribunal will include an examination of new energy products and services, including virtual power plants and demand response programs.

IPART is required by law to report annually on how consumers are engaging with and switching in the NSW retail electricity and gas markets.

Comments are due by 22 August.

Transcript is now available of the first two hearings of a NSW parliamentary inquiry into EV infrastructure.

The NSW EPA has agreed to a $100,000 enforceable undertaking with Reinforced Concrete Pipes Australia (NSW) Pty Ltd, following an investigation into unlicensed concrete works at its Somersby facility.

The EPA began investigating the company when it applied for an environmental licence in December 2022, several years after it had started producing steel-reinforced concrete pipes at the site.

The Victorian government has gazetted the Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Amendment Regulations 2025.

The regulations raise the state cap on waste processing by thermal waste-to-energy facilities from two million tonnes a year to 2.5 million tonnes annually. The cap applies to facilities other than those that were approved before 1 November 2021.

The Victorian government has published six case studies on electrification for industrial heat, water heating and boilers in large businesses.

Grant opportunity - biodiversity restoration. Almost $8 million in third-round Restoration Grants will soon be on offer to landholders in the Northern and Yorke, Hills and Fleurieu and Eyre Peninsula to restore native vegetation on their properties.

The report and supplementary report of a red-tape cutting committee has recommended the introduction of "a new Environmental Code of Practice and supporting processes to reduce approval timeframes for onshore gas".

The committee, made up of business representatives and established by the NT government, also recommends streamlining the Petroleum (Environment) Regulations "to remove duplication, improve clarity and enable administrative efficiencies".

The report also recommends introducing mandatory approval timeframes, and introducing mechanisms to motivate compliance with approval timeframes, such as "deemed approvals".

In addition, the report recommends "safeguarding small businesses from the impacts of significant policy changes" by making them exempt from significant changes to law, regulation or policy that would negatively impact them.

"Any exemptions would not apply to matters that are deemed necessary for health or safety of the public or a business’ employees," it says.

The NT government says the report's direction "aligns with our commitment to economic reform".

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