ESG Snapshot: Issue 107

This week's highlights include:

• EPA weighs in on giant coal project. The NSW EPA isn't satisfied with the emissions strategy proposed for the state's biggest ever coal mining project.
• Koalas and ACCUs. A proposed NSW national park that would protect thousands of koalas will only be established if it can earn carbon credits.
• Net Zero Chair. A former climate advisor to Tony Blair is the new Chair of the NSW Net Zero Commission.
• Crossbenchers. Senator Jacqui Lambie wants an inquiry into fuel tax credits, and Senator David Pocock wants an inquiry into a potential Santos takeover.
• Container deposit extension. The NT has introduced a Bill to expand its container deposit scheme to alcohol, and NSW and SA will do the same.
• Electricity market bills. The NT government has introduced bills to overhaul electricity market operations in the Territory.
• Clean and soon green. Coles is using 100% renewables to power its national operations, and has a new ambition to phase down supply chain deforestation.
• Fortescue to use credits. Fortescue has told the WA EPA it will rely heavily on carbon offsets for some years, as it seeks approval to expand mining.
• 'You can't change the weather'. Former Nationals leader Michael McCormack has bemoaned 'weather hand-wringers'.

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

Crossbench Senator Jacqui Lambie has foreshadowed her intent to seek a Senate Committee inquiry into the fuel tax credit scheme.

Senator Lambie proposes that the inquiry examine the viability and value of the fuel tax credit scheme.

The Coalition has signalled it will seek an amendment to the proposed terms of reference.

Crossbench Senator David Pocock has signalled he will seek a Senate committee inquiry into the proposed takeover of Santos Limited by the XRG Consortium.

Terms of reference would include the implications for the development of new gas fields, and the impact on Australia's emissions and its compliance with its climate obligations.

LNP Senator Matt Canavan has introduced a Repeal Net Zero Bill into the Senate.

"The purpose of the Bill is to return our nation and our economy to a sensible and fiscally responsible footing, omitting the fanciful position that Australia can by domestic policy change the weather, reduce cyclones, cool the planet, reduce droughts, reduce floods, change the temperature of the sea, reduce the risk of animals going into extinction, prevent disease and so many other fantastical assertions that are generally made as part of the Net Zero promise," the explanatory memorandum says.

Meanwhile, in debate in the House of Representatives on Nationals MP Barnaby Joyce's version of the Bill, Nationals MP Michael McCormack said "the greatest moral challenge for humankind is not the weather, which we cannot change, but the ability to grow food to help feed a hungry world".

"I note the number of capital city based politicians demanding action on behalf of their virtue-signalling, weather hand-wringers and rent-seeking corporations," McCormack said.

"Never has the city-country divide, sadly, been greater. It's all well and good to cover our farmland, our beautiful farmland, with battery energy storage systems, solar factories and wind turbines. How about we put offshore wind turbines at North Head or on the Yarra River or turn those sails on the iconic Sydney Opera House into solar panels?"

NSW and South Australia have committed to expand their container deposit schemes by late 2027 to include wine and spirit bottles and large drink containers.

Queensland has already integrated glass wine and spirit bottles into their container deposit scheme, and the Western Australian government has committed to do the same.

Northern Territory Environment Minister Joshua Burgoyne last week introduced a Bill to broaden the Territory's container deposit scheme along the same lines.

A new report from the Business Council of Australia examines the investment and policies required to achieve three different emissions reduction targets by 2035.

The report, titled Australia 2035 - maximising Australia's potential, considers a 50% reduction target, a 60% reduction, and a '70% plus' target.

"Achieving Australia’s 2035 potential will require between $210 billion and $530 billion of new capital investment across the economy by 2035, depending on the level of ambition," the report concludes.

An alliance of conservation groups has released a new report on Nature Economics, which analyses the case for federal government investment in nature.

"When the values of non-market ecosystem services such as climate regulation, water purification, pollination, and flood protection are included, nature’s value to the economy rises to over $511 billion annually," the report says.

"At approximately 20% of GDP, this is on par with the combined economic output of the mining and finance sectors."

"Yet investment in nature remains inadequate to protect the assets
that underpin this contribution to the economy," it says.

"Over the past decade, federal biodiversity investment has averaged just $476 million per year, despite a recent increase to to $762million in FY24," it points out.

That represents just 0.1% of the federal budget, and less than 8% of the estimated annual need, the report says.

The CEFC has committed $3.8 billion to support delivery of stage 1 of Marinus Link, which will establish a new 750MW interconnector between Tasmania and Victoria.

The commitment constitutes the largest investment ever made by the CEFC.

Grant opportunity - solar supply chain. ARENA has launched the second funding round of the $1 billion Solar Sunshot program, which aims to support the establishment of a resilient solar PV) manufacturing sector in Australia.

A total of $150 million is available to support to critical segments of the solar PV supply chain, including framing, solar glass, junction boxes and deployment technologies. 

Consultation opportunity - hydrogen joint tender. Consultation has started on the Australia-Germany H2Global Joint Tender, which is designed to provide supply and demand support to the international renewable hydrogen industry.

The €400 million joint tender will support Australian hydrogen producers to sell their product to European buyers at the highest possible price.

Comments are due by 30 September.

The Australian Accounting Standards Board has published a new guide on greenhouse gas emissions disclosures under AASB Standard on Climate-related Disclosures.

Meanwhile, DCCEEW has released revised Australian National Greenhouse Factors, for use by organisations that are estimating their emissions.

EPBC developments:

• DCCEEW has granted approval for ACEN's proposed 900MW Valley of the Winds wind farm near Coolah in NSW, in the Central-West Orana REZ
• DCCEEW is inviting comment on ACEN's referral for the Phoenix pumped hydro energy storage project, in the Central-West Orana REZ.
• DCCEEW is inviting comment on X-Elio's referral for the Willavale Park Battery Energy Storage System, proposed for a site near Goulburn in NSW.

Open consultations:

• Net zero. Submissions on the Productivity Commission's draft report on clean energy and net zero are due by 15 September.
• National Electricity Market. The Nelson review of the NEM has released its draft report, with submissions due by 17 September.
• Transition planning. Treasury has released draft voluntary guidance on best practices for climate-related transition planning. Comments are due by 24 September.

The Queensland government has announced it will repeal the Forest Wind Farm Development Act 2020, citing "wide-spread concerns" from the local community.

The Act would have facilitated the establishment of the 1200MW Forest wind farm in a large state-owned pine plantation located between Gympie and Maryborough.

"Forest Wind is actively assessing risk-mitigation strategies and intends to reapply under a similar state process in due course," the company said in a statement in which it argued that the project aligns to Queensland policies.

"The team remains dedicated to working collaboratively with government, Traditional Owners and the community to secure the project's future," it said.

Queensland's latest State of the Environment report says the extent of remnant vegetation is getting worse, and an additional 48 fauna species have been added to the threatened species list over the past four years, along with 66 flora species.

By 2021, across the state there was a 22% loss in threatened fauna species habitat compared to pre-clearing habitat extent, and a 29% loss of threatened flora species habitat. 

The NSW EPA has raised doubts about the adequacy of the greenhouse gas strategy for a two-part expansion of the Glencore/Yancoal open cut coal mining operations in the Hunter Valley.

The HVO South continuation project is on exhibition until 25 September. The project would continue the life of Glencore's HVO South operation from the current approved mining completion date of 2030 to the end of 2045.

A separate application for the continuation of HVO North, would extend its approved mining date from 2025 to the end of 20250.

In its advice to the NSW Department of Planning on the two continuation projects, the EPA notes that the continuation project "is the largest coal mining proposal ever put forward in NSW".

"In its current form, the modelling indicates this proposal is likely to make up approximately 14% of future new coal production in NSW between 2024 and 2050 and has significant unabated greenhouse gas emissions."

The EPA notes that the proponents haven't specified whether the offsets it will use will come from elsewhere in Australia (in which case they won't count as offsets in the NSW emissions inventory), or from NSW (in which case they will count).

"If approved, in its current form, modelling indicates the project will generate a significant amount of GHG emissions, accounting for 35% of all NSW coal sector GHG emissions in the absence of any onsite abatement or offsetting within NSW in 2045," the EPA says.

"This represents over 3.5% of NSW total emissions in 2045," it points out.

"However, if the offsets are obtained from within NSW, modelling indicates
the project would account for approximately 5.2% of all NSW coal sector GHG emissions and 0.5% of NSW total emissions in 2045."

"The EPA requests that carbon offsets from NSW-based offset projects (i.e. NSW-sourced ACCUs or SMCs where the proponent is entitled to use them) be used where practicable," the EPA says.

"This enables direct emission reductions and co-benefits to accrue in NSW."

The EPA also calls for consideration of strategies such as pre-drainage of methane and a more rapid diesel fleet replacement.

Mining beyond 2040 should be restricted due to the significant fugitive emissions that will be generated from the deep coal reserves, the EPA says.

"If mining is to be permitted beyond 2040 and before any of the deeper coal reserves are mined, the EPA recommends that the consent be conditioned to require the proponent to demonstrate that there is a mitigation measures available at the time, that can be implemented to abate the fugitive emissions from the deep coal reserves."

The NSW government has announced the proposed boundary for the long-awaited Great Koala National Park, along with a plan to support affected workers, industry and local communities.

The park will reserve 176,000 hectares of state forest and connect with existing national parks to create a 476,000-hectare reserve – one of the largest in NSW.

The government says the park will protect more than 12,000 koalas, and 36,000 Greater Gliders, and will provide habitat for more than 100 other threatened species.

The state government has also imposed a moratorium effective from today on timber harvesting within the proposed park boundary. It says this will have an impact on six out of more than 25 timber mills in the region and approximately 300 jobs.

The government is providing assistance including JobKeeper-style payments to support workers, and financial assistance towards business operating costs.

An additional $60 million in funding will also be provided to the NSW National Parks and Wildlife Service to support the establishment of the park, on top of $80 million announced in 2023.

The NSW government said the final creation of the park is dependent on the successful registration of a carbon project under a NSW government-proposed Improved Native Forest Management Method for earning ACCUs.

The proposed method is being developed in consultation with the Australian National University. It would provide ACCUs to projects that increase carbon stocks and avoid greenhouse gas emissions, by stopping or delaying harvesting in multiple-use public native forests.

If adopted and applied to the Great Koala National Park, ACCUs from the method could help fund economic development and park management.

"Without action, koalas are on track to be extinct in the wild in NSW by 2050," Environment Minister Penny Sharpe said.

"At the last election, we promised to take action to establish the Great Koala National Park — and today we are delivering on that commitment."

The NSW government has appointed Nick Rowley as the new Chair of the Net Zero Commission.

Rowley was an advisor to UK Prime Minister Tony Blair during the 2005 G8 Presidency, helping to elevate climate change as a global priority, and helping to initiate the seminal Stern review into the economics of climate change.

Rowley currently holds positions as Honorary Associate Professor at the ANU's Crawford School of Public Policy, and he is also an Adjunct Professor at the University of Technology Sydney's Institute for Sustainable Futures.

The NSW government has released a rezoning proposal to revitalise 200 hectares of land at BlueScope's Port Kembla site.

The rezoning of land on the southern edge of the Port Kembla Steelworks aims to attract new industries across advanced manufacturing, clean and renewable energy, education, and data and logistics.

Statutory development - radiation. The NSW government has gazetted the Protection from Harmful Radiation Regulation 2025.

A NSW parliamentary committee inquiry into modern slavery risks in regional NSW has scheduled a hearing for 12 September.

The program has yet to be announced.

Transcript of a parliamentary Estimates hearing for the climate and environment portfolio is now available.

Open consultations:

• PFAS in biosolids. The NSW EPA is seeking feedback on proposed new rules regarding the application of biosolids to land, which are focused on PFAS testing and reporting. Comments close on 26 September.
• Climate change. The NSW EPA has released draft Climate Change Licensee Requirements and Mitigation Requirements, and draft sector-specific guidance for NSW coal mines. Comments are due by 7 October.

The state government has amended the Victorian Planning Provisions to incorporate the Victorian Transmission Plan.

Statutory development - energy efficiency. Energy and Resources Minister Lily D'Ambrosio has gazetted the Victorian Energy Efficiency Target (Project-Based Activities) Amendment Regulations 2025.

An explanatory statement is available here.

Minister for Energy and Resources Lily D’Ambrosio has officially opened Tilt Renewables' 100MW Latrobe Valley Battery Energy Storage System, located beside the existing Morwell terminal station. 

The Essential Services Commission has punished two businesses it alleges claimed certificates under the Victorian Energy Upgrades scheme for work that didn't take place.

The Commission alleges contractors working for (Zerowatt) and (LEDSaves) falsely claimed to have completed weather sealing and low-flow shower rose installations.

Phenix Pty Ltd (LEDSaves) has had a six-month restriction placed on its accreditation, after it self-reported misrepresentations by some of its contractors.

The commission has ordered it to surrender 4,552 certificates worth more than $400,000, and has ordered an independent audit of its quality assurance processes.

A.K. Alvi Enterprises Ptd Ltd (Zerowatt) has been suspended from the VEU program for three months, and the Commission has refused registration of 200 certificates, valued at $19,200.

The current deputy secretary of the Victorian Department of Transport and Planning, Andrew McKeegan, has been appointed as South Australia's inaugural Coordinator-General.

McKeegan previously served as the deputy chief executive of the South Australian Department of Planning, Transport and Infrastructure.

More recently, he served as an expert panel member driving the 2023 review of South Australia’s Planning System.

The creation of the Coordinator General's Office is a key feature of the State Development Coordination and Facilitation Act, which recently passed the South Australian Parliament.

Greens MLC Tammy Franks has introduced a Climate Change and Greenhouse Emissions Reduction (Intergenerational Equity) Amendment Bill to the Upper House.

The Bill would promote intergenerational equity by requiring the health and well-being of children and future generations to be considered by persons making administrative decisions that are likely to contribute to climate change.

The WA EPA has released Fortescue's proposed Environmental Review Document for an expansion of its Iron Bridge magnetite project.

The project was approved in 2015, and the amendment would extend the mining disturbance footprint by 17%, and extend a waste rock dump.

The documentation says Fortescue has committed to achieving carbon neutrality for its iron ore operations (total Scope 1 and Scope 2 emissions) by 2030.

Scope 1 emissions from electricity generation are not incorporated into greenhouse gas emissions calculations for the amended proposal, because electricity will be purchased from Fortescue's 'Pilbara Energy Connect' network of renewables and gas turbines.

However, scope 1 and scope 2 emissions from the amended project will still total about 3.4 million over the life of the mine.

"Carbon offsets are likely to be surrendered under the Safeguard Mechanism for more than 30% of the Revised Proposal expected baseline scope 1 emissions until FY 2030," text in the documentation says.

Environment Minister Matthew Swinbourne has amended conditions for Gorgon's Barrow Island LNG plant to require the establishment of a Quarantine Expert Panel to advise on biosecurity.

The Minister has also required the establishment of a Marine Turtle Expert Panel to advise on marine turtle monitoring and management on Barrow Island.

The Western Australian government will establish a new marine park encompassing the entire Exmouth Gulf, with existing commercial fishing still allowed in some areas.

The Gulf is an important habitat for nursing humpback whales and their calves, one of the world's largest populations of dugongs, Australian humpback dolphins and four species of marine turtles.

It is a global hotspot for threatened sawfish and wedgefish, and home to at least 11 species of sea snakes, including two species previously thought to be extinct.

The state government has awarded a $2 million grant to RCR Advanced Technologies, under its $8 million Wind Energy Manufacturing Co-Investment Program.

The funding will go towards a $5.3 million project to pilot the production of innovative transition flanges for wind turbines.

Statutory development - electricity market. The NT government has introduced a Bill is to amend the Electricity Reform Act 2000 to establish new electricity market and governance arrangements for the Territory's major electricity systems. 

The objects of the Electricity Legislation Amendment (Market Reform) Bill are to authorise central planning and procurement, with detailed requirements to be set out in subordinate instruments.

Subordinate instruments will include the Territory Electricity Market (TEM) Rules, which will incorporate in a single set of rules the existing instruments that govern the electricity system and market operations.

A separate Electricity System and Market Operator Bill will establish a new Northern Territory Electricity System and Market Operator (NTESMO) as a statutory corporation, separating these functions from the Power and Water Corporation.

NTESMO will have control over power systems and the wholesale electricity market, and will have planning and procurement functions, under the Regulated Electricity System and Investment Plan (RESIP) processes. 

Statutory development - new EPA powers. The NT Assembly has passed a government Bill that gives the NT EPA new powers.

The Lands, Planning and Environment Legislation Amendment Bill allows the NT EPA to make an administrative amendment to an environment protection approval or licence at its own initiative, or at the request of the holder of the approval or licence.

An administrative amendment includes correction of an error, or "clarifying any matter".

The new power is introduced through an amendment to the Waste Management And Pollution Control Act.

The Bill makes various other changes to environmental legislation.

Statutory development - Territory Coordinator. The NT government has gazetted Territory Coordinator Regulations.

The NT EPA has issued a statement on methane leaks from the Santos Darwin LNG tank in Darwin Harbour.

"The NT EPA is aware of fugitive methane leaks from the Santos LNG tank," the statement says. "Fugitive emissions occur at all LNG facilities however, the cause of the emissions from the DLNG tank is unique to this facility."

"The estimated emissions from the LNG tank leak are approximately equivalent to 1% of Santos's facility's total annual greenhouse gas emissions and approximately 0.1% of the NT's emissions," it says.

"The NT EPA did not report the leak to the public because at these levels they do not pose any risk of explosion and negligible risk to human health or the environment," the statement says.

"According to Santos, the leak at the DLNG tank originated during its initial commissioning in 2006 due to a design fault," it says. "This was reported to the NT EPA and NT WorkSafe at the time, and an independent investigation subsequently cleared the tank for continued use." 

New listings are in blue.

The Science Based Targets initiative (SBTi) has released the first draft of its Power Sector Net-Zero Standard. Comments are due by 3 November.

The World Business Council for Sustainable Development (WBCSD) and the Global Resilience Partnership have launched a new award scheme to acknowledge businesses that are showing resilience leadership.

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