ESG Snapshot: Issue 102

This week's highlights include:

• 'More ambitious'. The NSW EPA has unveiled new requirements for large emitters that it says are more ambitious than Safeguard requirements.
• EPA trio. The EPAs of NSW, Victoria and South Australia have released principles on how their actions will have regard to NGER and the Safeguard.
• Expanded Safeguard. The Productivity Commission is in favour of expanding the federal Safeguard Mechanism scheme to cover more facilities.
• Bots and trolls. A Senate committee will investigate climate and energy misinformation and disinformation.
• Sequestration nation. A new report says CCS projects on Australia's east coast could potentially sequester 50 million tonnes of CO2 annually.
• Hydrogen rethink. AEMO has dramatically recalibrated its thinking on how much hydrogen might be needed to support green exports.
• VAMoose. The NSW EPA intends requiring underground coal mines to have Ventilation Air Methane destruction systems in place by 2030.
• Let that be a lesson. NOPSEMA has ordered Woodside to review its decommissioning planning and prepare a public 'Lessons Learnt' report.
• 'Are you kidding?' Australia's youngest ever Senator has rebuked Senator Pauline Hanson over One Nation's urgency motion on climate change.

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

The Productivity Commission has released the interim report of its inquiry into clean energy and the net zero transformation.

Draft recommendations include lowering the threshold for participation in the Safeguard Mechanism, and introducing a new housing resilience rating system. (See link below to podcast chat with Commissioner Barry Sterland).

Greens Senator Peter Whish-Wilson has secured a new Senate committee inquiry into climate change and energy misinformation and disinformation.

The Select Committee on Information Integrity on Climate Change and Energy is due to report by 4 February next year.

Terms of reference include the prevalence of, motivations behind and impacts of misinformation and disinformation related to climate change and energy, the origins, growth and prevalence of 'astroturfing' and its impact on public policy and debate, and the role of social media.

The Net Zero Economy Authority has published submissions received in response to a consultation on whether it should declare the need for an Energy Industry Jobs Plan (EIJP) for Origin Energy's Eraring power station.

A union submission calls for an EIJP, saying Origin's support measures are inadequate. Origin says in its submission that an EIJP is not appropriate.

Greens Senator Sarah Hanson-Young has secured a continuation of the Senate committee inquiry into greenwashing that started in the previous Parliament.

The committee is now scheduled to issue its report by 25 June next year. Coalition senators opposed the re-referral.

Meanwhile, Senator Lidia Thorpe has successfully secured a continuation of a Senate select committee inquiry into PFAS, which was also initiated in the previous Parliament.

The re-referred inquiry will now report by 19 November this year.

National Party MP Barnaby Joyce has introduced a private member's Bill to repeal the net-zero target.

The Bill was seconded by fellow Nationals MP Colin Boyce, who criticised a range of climate policies.

Meanwhile, Senator Matt Canavan unsuccessfully sought to initiate a Senate committee inquiry into the health and future of the metals manufacturing industry in Australia.

The inquiry would have had terms of reference including the cost to the industry of meeting climate targets.

Similarly, One Nation leader Senator Pauline Hanson unsuccessfully sought Senate agreement that, as a matter of urgency, the government should scrap its net-zero emissions target.

"This was all set up under [the UN's] Agenda 21," Senator Hanson said. "It started with Maurice Strong in the 1970s. It's basically about Agenda 21 controlling the plebs."

National Party MP Barnaby Joyce has introduced a private member's Bill to repeal the net-zero target.

The Bill was seconded by fellow Nationals MP Colin Boyce, who criticised a range of climate policies.

Meanwhile, Senator Matt Canavan unsuccessfully sought to initiate a Senate committee inquiry into the health and future of the metals manufacturing industry in Australia.

The inquiry would have had terms of reference including the cost to the industry of meeting climate targets.

Similarly, One Nation leader Senator Pauline Hanson unsuccessfully sought Senate agreement that, as a matter of urgency, the government should scrap its net-zero emissions target.

"This was all set up under [the UN's] Agenda 21," Senator Hanson said. "It started with Maurice Strong in the 1970s. It's basically about Agenda 21 controlling the plebs."

Speaking in response to Senator Hanson, Australia's youngest ever Senator, Labor Senator Charlotte Walker, said: "Well, all I can say is: are you kidding?".

"Net zero means waking up to a reality that Senator Hanson has not been able to grasp," Senator Walker said.

The Marinus Link Stage 1 interconnector between Tasmania and Victoria has reached Final Investment Decision (FID), following agreement between the federal, Victorian and Tasmanian governments.

"This project is a cornerstone of the Albanese Government's commitment to reducing emissions and creating jobs in regional communities, with its 750MWt capacity roughly equal to the power supply for 750,000 Australian homes," Climate Change Minister Chris Bowen said.

Stage 1 construction is expected to start in 2026, and is slated for completion in 2030. FID-related documents are available here.

Environment group Climate Integrity has made a complaint to the ACCC about a NSW Mining advertisement that says "coal is needed for energy security" and NSW coal is "high quality".

"Our coal is needed for many years to come, while the world develops other energy sources," the advertisement says.

Climate Integrity alleges the advertisement could breach the Australian Consumer Law.

Consultation opportunity - catchment water quality. Eco-Markets Australia is seeking views on a proposed Australasian Catchment Water Improvement Standard.

Based on the Reef Credit Scheme, ACWIS will be a new voluntary water quality improvement credit framework designed to support investment in programs that address water quality challenges across Australasia.

Comments are due by 18 August.

CSIRO has reaffirmed that renewables remain the lowest-cost form of new build electricity generation, and small modular reactors are the most costly, in its latest GenCost report, prepared in conjunction with AEMO.

The Australian Energy Market Operator has published a 2025 Inputs, Assumptions and Scenarios Report (IASR) that will help guide the development of its next Integrated System Plan.

The new IASR shows that the most ambitious scenario in AEMO's 2024 Integrated System Plan, the "green exports" scenario, will be rebadged for the 2026 ISP as the "accelerated transition" scenario.

The rebadging is unsurprising given that the "accelerated transition" scenario includes a dramatically lower estimate of electricity consumption linked to hydrogen production for green commodities and exports than was assumed in the 2024 "green exports" scenario. (See a summary of the differences here).

AEMO has also published its latest Electricity Network Options Report, and a Gas Infrastructure Options Report.

For the first time, the Electricity Network Options Report includes distribution network considerations. The gas options report for the first time includes detailed information consistent with AEMO's Gas Statement of Opportunities analysis.

AEMO is hosting a webinar on the three reports on 12 August. A range of associated technical reports commissioned by AEMO are available here.

A CEFC investment update for FY25 says the CEFC committed a record $4.7 billion in that financial year, including a record $3.5 billion to renewable energy projects and grid infrastructure.

This was more than twice the amount committed in the previous financial year, it says.

The CEFC committed $2.8 billion through the Rewiring The Nation Fund across three transactions, including $2.075 billion for HumeLink and the NSW component of VNI-West, and $750 million for the Central-West Orana Renewable Energy Zone.

Natural capital transactions included a $300 million co-finance program with NAB to reduce interest rates for manufacturing, transport and farm-related clean energy projects, and up to $200 million with Rabobank to reduce costs for farmers undertaking ACCU environmental planting projects.

Since its inception, the CEFC has made lifetime commitments of $18.3 billion and has helped drive commitments totalling $85.3 billion to clean energy projects, the update says.

The ACCC's latest Electricity inquiry report says participating in a virtual power plant may deliver additional benefits for households that have a solar and battery system.

Resources Minister Madeleine King has launched a report on carbon capture and storage, prepared by Low Emissions Technology Australia (LETA).

"As this report makes clear, CCS can play a critical role in decarbonising hard-to-abate industries across Australia like steel, cement and chemical production," King said.

"CCS will also play a role in reducing the emission intensity of gas at the point source of production," she said. 

"It is fashionable in some circles to denigrate existing CCS projects," the Minister said. "But to do this without observing what has been achieved is to write off how CCUS can contribute to decarbonisation, and to ignore the warning of the International Energy Agency that reaching net zero will be virtually impossible without CCUS."

The report, produced by EY Parthenon, examines three potential scenarios for the deployment of CCS on Australia's east coast, with the most ambitious described as the "sequestration nation" scenario.

The report concludes that under this scenario a fully networked CCS industry along the east coast could enable the capture of up to 50 million tonnes of CO2 annually, and generate up to around $66 billion in economic activity.

Under the scenario, Queensland's existing ban on CCS would be lifted, allowing storage in the Surat Basin from 2035.

"A serious ramp up of demand for CCS from 2034 to 2037 occurs as all east coast
Safeguard Mechanism facilities begin utilising CCS," the report says. "The east coast imports 20% of Korea, Japan and Singapore's exported carbon and the east coast’s share of hydrogen jumps to 40%."

"Direct air capture becomes more economically viable, sequestering carbon from 2037," it says.

Meanwhile, Minister King also noted that the Resourcing Australia's Prosperity program is aiming to finalise a national CO2 storage resource atlas by 2028.

The EPAs of NSW, Victoria and South Australia have issued Guiding principles for alignment with the NGER Scheme and the Safeguard Mechanism.

"To help meet their more ambitious targets and to better inform their planning assessment processes, some states and territories have implemented (or are implementing) approaches that are requiring businesses to do more than just comply with the Safeguard Mechanism," the guiding principles state.

"However, states and territories are being careful not to duplicate or conflict reporting requirements with Safeguard and the NGER scheme, where possible."

The Bureau of Meteorology and CSIRO expect to make long-range forecasts of ocean temperatures available on the BOM website from later this year.

The Productivity Commission is this month due to submit its final report on the circular economy to the government.

The latest Track Changes podcast from Earthed is out! It features a chat with Productivity Commissioner Barry Sterland on today's Productivity Commission report on cheaper, cleaner energy and the net zero transformation. Find it on Spotify, Apple, or YouTube.

Open consultations:

• Hydrogen. DCCEEW is seeking comments on two new regulatory guidance documents for the hydrogen industry - one on hydrogen production, and the other on hydrogen refuelling. Comments are due by 19 August.
• Consumer energy resources. 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.
• Sustainable financial products. Treasury has released a paper on policy options for a possible sustainable financial product labelling framework. Comments are due by 29 August.
• Offshore carbon capture and storage. DCCEEW is consulting on three offshore CCS guidance documents. Comments are due by 12 September.

Grant opportunity. The Queensland government is inviting applications for funding under its Sovereign Industry Development Fund, which is targeting the defence, biomedical, and biofuels industries.

A total of $180 million is on offer.

Statutory development - mining financial assurances. The Queensland government has gazetted an amending regulation under its Mineral and Energy Resources (Financial Provisioning) Act.

The Queensland government is inviting irrigators and farmers to submit expressions of interest to secure unallocated water in various catchments.

A 48-hectare privately owned property on Queensland's Western Downs has been designated as Australia's first "Conserved Area" under a new conservation framework.

Weranga Scarps is managed by Wildlife Land Fund Limited (WLFL), and provides important habitat for threatened species including the yakka skink, koala, and glossy black-cockatoo. 

'Conserved Area' classifications are made under the National Other Effective area-based Conservation Measures (OECM) Framework, which was launched by the federal government in mid-2024.

Conserved areas recognise areas that achieve long-term biodiversity conservation outcomes, even if biodiversity is not the primary land use objective.

The Queensland government is investing $414,000 over two years in a pilot program to implement the national OECM framework across the state. 

Consultation - EPA licence provisions on greenhouse gas emissions. The NSW EPA has released draft Climate Change Licensee Requirements and Mitigation Requirements, designed to ensure licensees reduce their carbon emissions.

The proposed measures will be phased in across industry sectors, applying only to Safeguard facilities and coal mines in the first year, with remaining facilities brought under the regime a year later.

The measures will eventually apply to about 200 (or 10%) of the EPA's licensees that each annually emit 25,000 tonnes or more of Scope 1 and Scope 2 emissions.

Although these facilities make up only a small portion of the EPA's licensees, they emit around 50% of all NSW emissions.

The initial requirements focus on reporting emissions, and preparing public mitigation and adaptation plans. Eventually, greenhouse gas emission limits will be inserted in licences.

"The Safeguard Mechanism alone will not be enough to help NSW meet its emission reduction targets," the draft licensee requirements guide says.

"Our approach supports the NSW government’s legislated targets for emissions reductions, which are more ambitious than the Australian government’s targets and build upon the work required under Safeguard."

Comments are due by 7 October.

To help meet the proposed requirements, eligible licensees will be able to access grants from the state's High Emitting Industries Fund.

Meanwhile, the EPA has also released a draft sector-specific greenhouse gas mitigation guide for NSW coal mines, which describes climate actions for the coal industry, targeting methane.

The guide says the EPA plans to require underground mines to have ventilation air methane (VAM) destruction systems in place by 2030, subject to an EPA VAM technology safety review to be conducted in 2028.

In addition, the EPA has also released a CSIRO report on improving the measurement of fugitive methane emissions.

A webinar on the draft documents will be held on 20 August.

NSW Energy Minister Penny Sharpe has announced a tender for firming projects with an indicative target of 500MW of capacity.

"This is crucial to ensure NSW residents and businesses have reliable power when they need it most, especially during high-demand periods like heatwaves or cold snaps," the Minister said.

The tender will be open to battery projects, gas projects and virtual power plants.

The NSW government has placed on exhibition Transgrid's EIS for the Victoria to NSW Interconnector West (VNI West).

The Independent Planning Commission has approved the proposed 1,300MW Potting wind farm, which will be located in the South West renewable energy zone, about 60 kilometres south of Hay.

The wind farm, and associated 500MW/2,000MWh battery system, is being developed by a joint venture between AGL and Someva Renewables.

The NSW Natural Resources Commission has released its latest annual report on the monitoring of private native forestry.

Statutory development - VicGrid Bill. The Legislative Assembly has passed the VicGrid Stage 2 Bill, and it has now gone to the Legislative Council.

The Opposition described the legislation as an "outrageous attack on Victorians – on Victorian farmers, on regional communities and on the property rights of landowners in this state".

"This Bill will allow forcible entry onto your land," said Liberal MP James Newbury, who described the Bill's community benefit provisions as "one big lie".

Labor MP Nina Taylor noted that there is already a provision for enabling access to land by transmission companies under section 93 of the Electricity Industry Act.

"These provisions are common across large infrastructure projects such as transport," Taylor said.

"However, under the existing regime the only legal option to enforce land access is for a transmission network provider to seek an injunction from the Supreme Court to enforce the right to access land under section 93 of the EIA, which is expensive, time consuming and not fit for purpose."

Victoria's Minister for Energy and Resources Lily D'Ambrosio, and Minister for Planning Sonya Kilkenny, have released the Extractive Resources Joint Ministerial Statement 2025.

The statement aims to streamline approval processes, and reduce the environmental impact of quarries.

Grant opportunity - trees on farms. The state government is inviting applications for grants to support farm forestry and environmental plantings projects.

The Victorian government is now accepting entries from Victorian water businesses for the 2025 Water Innovation Challenge, which recognises water industry efforts to take action on climate change.

South Australian small businesses affected by the algal bloom will be eligible for government grants of up to $10,000, while the hardest hit commercial fisheries and aquaculture licence holders can apply for up to $100,000 in support, under a new industry support package.

Small businesses will be able to apply for the $10,000 grants if they can demonstrate a 30% decline in business turnover.

Commercial fishers and aquaculture licence holders can obtain an immediate payment of $25,000 if they have been forced to close by authorities for more than one month, or they have suffered a 50% reduction in catch or harvest .

They can obtain additional payment of up to $75,000 if they can also demonstrate a 50% reduction in turnover.

ACCIONA has been confirmed as the major construction partner for a new desalination plant that will provide a climate-independent source of sustainable drinking water to 35,000 SA Water customers on the Eyre Peninsula.

The project is expected to cost about $470 million, with first water expected to be delivered from the plant by the end of 2026.

Rio Tinto is undertaking a Regional Cumulative Effects Assessment (RCEA) to examine the cumulative effects of development within the East Pilbara, according to company documentation submitted to the WA EPA in support of its "strategic proposal" for future development in the region.

"The RCEA will facilitate the understanding of long-term environmental, biodiversity, socio-economic and cultural outcomes at a broader level and will form a core component of the environmental assessment for the Strategic Proposal," the mining company says.

"The cumulative effects assessment will include a number of scenarios to
understand environmental impacts and outcomes from different possible futures," it says.

Grant opportunity - carbon farming. The state government is accepting applications under round 3 of the Carbon for Farmers Voucher Program.

A total of $500,000 worth of vouchers are on offer to help farmers access professional expertise to progress carbon farming initiatives. Applications close on 19 September.

In the previous two rounds, 90 vouchers worth more than $1 million have been distributed.

The Centre of Decommissioning Australia has released a new study exploring the infrastructure, capability, and regulatory requirements needed to support offshore oil and gas decommissioning in the Northern Territory.

The study evaluates ports and surrounding industries that could facilitate the receival, dismantling, recycling, and disposal of equipment recovered from the Browse and Bonaparte basins over the next 40 years.

CODA estimated that there is a USD$40.5 billion decommissioning liability for the full removal of all equipment installed offshore of Australia, and 20% of the liability is related to assets located in the Browse and Bonaparte basins. 

Statutory development - environment and planning Bill. The NT government has introduced a Lands, Planning and Environment Legislation Amendment Bill, which aims to fast-track approvals for low-risk projects and remove duplications in regulatory processes.

New listings are in blue.

The US EPA has released the agency's proposal to rescind the 2009 Endangerment Finding - a move that would repeal all greenhouse gas standards for light, medium and heavy-duty vehicles and heavy-duty engines.

The New Zealand parliament has passed legislation that rescinds a ban on new petroleum exploration.

"This government is pragmatic about the vital role natural gas will play in our energy mix in the decades ahead and we have set a course for greater energy security backed by our own indigenous reserves," said Resources Minister Shane Jones.

Global energy-related investment grew to over US$3 trillion in 2024, but only a quarter of the total went to emerging markets and developing economies other than China, says a new International Energy Agency analysis.

Plastics use in ASEAN, China, Japan and Korea has surged almost nine-fold since 1990, reaching 152 million tonnes in 2022, says a new report from the OECD.

The region now accounts for almost one-third of global plastics use, with annual per capita use ranging from 32kg in lower middle-income countries to over 100kg in many upper middle- and high-income countries in the region.

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