ESG Snapshot: Issue 109

This week's highlights include:

• New task for AEMO. Australia's energy market operator will be instructed to examine energy productivity opportunities.
• Power plant veto. NSW's Independent Planning Commission has vetoed a proposed biomass-fuelled power plant.
• Planning and climate. A major NSW planning Bill will require planning decisions to consider the need to respond to climate change.
• The fast and the synchronous. NSW Climate Minister Penny Sharpe has issued Transgrid with a directive to prioritise synchronous condensers.
• New reports, more funding. The federal government has released a raft of major climate change reports, and announced new funding.
• Integrity concerns. The operator of a Montara oil field vessel isn't doing enough to monitor and ensure hull integrity, NOPSEMA has concluded.
• No 'pipedreams'. The Queensland government says its imminent new energy roadmap will be 'realistic' and won't contain 'pipedreams'.
• New Climate Minister. South Australia has a new Climate Change Minister.
• Marine treaty milestone. A key international marine treaty now has enough signatories to enter into force.

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

The federal government has accepted the Climate Change Authority's recommended 2035 target range - a 62% to 70% reduction below 2005 levels.

"Our advice recognises geopolitical uncertainties, implementation barriers and the potential for technological advances," says the Authority's advice. "That's why we recommend a target range."

"It involves cutting Australia’s emissions by roughly half from the current level, requiring emissions to decline by around 19 to 24 million tonnes CO2-e per year on average from 2024 through to 2035," it says.

"This compares with the average reduction of 9 million tonnes CO2-e per year achieved from 2005–2024, and the 16 million tonnes CO2-e per year required to reach the national 2030 target."

"Technologies now exist to meet an economy-wide 62%–70% 2035 goal," it says. "However, meeting even the lower end of the target range won't be easy."

"While some analysis suggests it would be technically possible for Australia to achieve even more, our analysis finds that doing so would involve higher delivery risks and may require policies with considerably higher near-term social, environmental or economic impacts," it says.

"The next breakthrough in international climate policy will likely not come from another universal agreement," the Authority says. "In this era of realignment for a net zero transition – marked by rerouting of trade flows and shifting relationships in a complex, multipolar world – it will be much more likely to come from new forms of international cooperation and partnerships that drive trade and investment in low-emissions products.

The Authority's advice takes into account modelling by the CSIRO, to evaluate the economic, technological and emissions implications.

The federal government has released its Net Zero Plan and six supporting sector plans on - electricity and energy, the built environment, agriculture and the land sector, industry, resources, and transport.

It has also released Treasury modelling examining the impact of the net zero transformation.

The federal government has released Australia's first National Climate Risk Assessment and National Adaptation Plan.

The federal government has committed $1.1 billion over 10 years to a Cleaner Fuels Program that will support the production of low carbon liquid fuels (LCLF) in Australia.

LCLF - such as renewable diesel, sustainable aviation fuel and e-fuels - can help reduce emissions in hard-to-abate industries, such as aviation, heavy freight, and mining.

The government plans to finalise details of the scheme in mid-2026, ahead of opening applications in 2026-27.

The government will instruct the Australian Energy Market Operator to prepare a Statement of Demand Opportunities, that will focus on energy efficiency measures, Climate Change Minister Chris Bowen has announced.

AEMO already produces a regular Energy Statement of Opportunities, and a Gas Statement of Opportunities.

The Minister said the government would also expand the NatHERS and NABERS schemes.

The federal government will allocate $5 billion to a new Net Zero Fund to support heavy industry to decarbonise and scale-up of low emissions technologies.

The funding will be delivered by the National Reconstruction Fund (NRF), drawing on its existing $15 billion fund.

Other funding announcements include:

• $40 million to support kerbside charging.
• $50 million to support sporting clubs to switch to clean energy and undertake adaptation measures.

The federal government has released the results of CIS Tender Round 3, with 16 battery energy storage projects making successful bids.

The successful projects will deliver 4.13 GW (about 15.37 GWh) of capacity, which is enough battery storage to power over 3.5 million homes for four hours during peak demand.

The federal government will for two years reduce fees associated with various types of offshore wind licences.

• Annual levies applied to feasibility and research and demonstration licences will be waived, and annual levies applied to transmission and infrastructure licences will be halved.
• Fees for research and demonstration licences will be cut from $300,000 to $20,000.
• Application fees for transmission and infrastructure licences will be halved from $300,000 to $150,000.

Regulations to give effect to the fee reductions will be in place by the end of the year.

Initial submissions to a Senate committee inquiry into information integrity on climate change and energy are now available.

The operator of the Montara Venture facility "has not effectively assured hull integrity, nor has it consistently adhered to established industry standards and practices", according to NOPSEMA.

"This has resulted in an increased risk of hull and/or tank integrity loss, which may pose significant safety and environmental risks," NOPSEMA says.

"Jadestone's corrosion management and repair strategy does not align with industry standards," it says.

"The use of temporary repairs, defined-life repairs, and increased inspection frequencies to justify reduced severity ratings is not consistent with accepted practices," it says. 

"lndustry norms require permanent repairs where bottom plate diminution or corrosion damage exceeds 25%."

NOPSEMA has directed Jadestone to take corrective action.

The Montara Venture floating production and storage offloading facility is not the same installation as the Montara wellhead that was the source of a major, 74-day 2009 oil leak. However it operates in the same oil field.

Consultation opportunity - production tax incentive. The federal government has released draft regulations that clarify aspects of the Critical Minerals Production Tax Incentive, which aims to support downstream refining and processing of Australia's critical minerals.

The draft regulations focus on graphite, high purity alumina, and precursor cathode-active material. Comments are due by 10 October.

NOPSEMA has released an information paper on planning for proactive decommissioning.

"Recent experience indicates that some titleholders do not develop appropriate decommissioning plans in a timely manner, potentially increasing risk exposure to people and the environment," the paper says.

"Titleholders are expected to include appropriate information on decommissioning in permissioning documents at all stages of the life cycle of the petroleum project," it says.

Environment Minister Murray Watt has varied EPBC conditions on Sojitz Blue Pty Ltd, a subsidiary of Japan-based Sojitz, for both its Meteor Downs coal project in Queensland, and the associated rail loop.

The variations are in response to the failure to implement an offset management plan and matters of national environmental significance management plan, and the failure to report non-compliance to the department.

DCCEEW has released a recording of a webinar given by former Chief Scientist Dr Cathy Foley about the work of the expert panel investigating fugitive methane emissions.

Dr Foley is the chair of the expert panel.

The Independent Expert Scientific Committee on Unconventional Gas Development and Large Coal Mining Development has released its advice on a proposed expansion of Whitehaven's Maules Creek coal mine.

Accounting for Nature, the not-for-profit provider of a science-based environmental accounting framework, has announced four appointments to its independent Standards and Integrity Committee.

The appointees are Emily Gerrard (principal lawyer and director at Comhar Group), Mike Grundy (soil and landscape researcher), Mardi McBrien (senior director for corporate performance and accountability initiatives at WBCSD), and Joseph Bull Associate Professor in Climate Change Biology at Oxford University). 

The four new members join the recently announced Chair of the Committee, Liza Maimone.

Open consultations:

• Nature strategy. DCCEEW is consulting on implementing Australia's strategy for nature. Comments are due by 15 October.

Former Australian diplomat Luke Heilbuth has published a new post on climate COPs and integrity.

The latest Track Changes podcast - a panel-pod on climate disinformation and misinformation - is out (on Spotify, Apple, and YouTube)!

Treasurer and Energy Minister David Janetzki has told state Parliament that the state government's imminent "energy roadmap" will be "realistic, achievable and responsible", with no "under-budgeted pipe-dreams".

The road map will be released on 10 October and will set aside the former government's "ideological bias", with a focus on economics and engineering, he said.

"It will include coal generation for longer, more gas and support for low-cost energy production in wind and solar with more dispatchable supply for firming and storage including gas turbines, pumped hydro and batteries," he said.

Transcript is now available from two recent hearings of a Queensland parliamentary committee inquiry into sugarcane bioenergy opportunities.

The NSW Independent Planning Commission has refused a development application to restart the Redbank Power Station using biomass instead of coal tailings as fuel.

Verdant Earth Technologies Ltd proposed to use up to 700,000 dry tonnes per year of biomass as fuel, with a gradual shift from "invasive native species" and other waste fuels towards purpose-grown plantation crops.

The Commission found that the project will establish a new commercial incentive to increase land clearing, and this would have flow-on environmental impacts.

The latest Biodiversity Credit Supply Fund reverse auction closed last Wednesday, with successful bidders to be announced on 15 October.

Energy and Environment Minister Penny Sharpe has issued a Priority Network Infrastructure Project Direction, which requires Transgrid to complete a system strength project involving the commissioning of synchronous condensers by September 2028.

Transcript is now available of a recent hearing of a NSW parliamentary committee inquiry into modern slavery risks in regional areas.

Statutory development - planning. The NSW government has introduced a Planning System Reforms Bill, which establish a Development Coordination Authority that will provide advice on development applications on behalf of all NSW government agencies.

"For the first time, a new object will be written into the Act that supports the need to respond to climate change, promoting resilience to natural disasters through adaptation, mitigation, preparedness and prevention," said Planning Minister Paul Scully.

"Significantly, we will introduce a new object to embed proportionality and a risk-based approach to planning and assessment in the Act," the Minister said. 

"Changes will be made to broaden the powers of the NSW government to intervene in so‑called "zombie" consents, which are historic consents that legally commenced decades ago," he said. "These consents have caused much local community concern across NSW."

"New powers will provide two resolution options," he said. "In the case where development is inconsistent with environmental planning instruments or outcomes, it will be possible to revoke a development consent and pay compensation to the landowner. In other cases, orders can be issued to direct that works be completed in a specified time."

Statutory development - environmental legislation. The government's Environmental Legislation Amendment Bill has passed the Legislative Assembly with minor amendments, and is now before the Legislative Council.

The state government has provided its response to the NSW Invasive Species Management Review, which recommended a step-change in invasive species management.

The government has agreed to develop an invasive species planning
framework, which will be included in a new State Biosecurity Strategy.

Open consultations:

• 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.

EPA Victoria is seeking feedback on draft revised Risk Management and Monitoring Program (RMMP) guidance.

Every EPA licence holder must have an RMMP identify their environmental risks, and relevant controls, and demonstrate compliance with their General Environmental Duty.

Comments are due by 29 October.

The state government has announced funding to support an evaluation by Immersion Group of the feasibility of establishing an onshore aquaculture facility for red Asparagopsus seaweed at Portland.

When added to livestock diets, the native seaweed has been shown to reduce their methane emissions by up to 80%.

Cooper Energy has applied to the state government to vary its gas pipeline in the Gippsland Basin, to increase its design capacity.

Forestry Tasmania has registered an ACCU project that will generate carbon credits by converting a short conversion plantation to long conversion.

Climate Change and Environment Minister, Susan Close, who is also Deputy Premier, has decided to resign from Cabinet and will not contest the next election.

Lucy Hood has been appointed the new Minister for Climate, Environment and Water. She was a director of policy in the office of current Premier Peter Malinauskas when he was opposition leader, and was also a senior advisor to former Premier Jay Weatherill.

Tom Koutsantonis has also been appointed Treasurer, augmenting his existing energy and mining portfolio. He will no longer hold the portfolios of infrastructure and transport.

The state government has released a three-stage plan to upgrade the state's main power grid, the South West Interconnected System (SWIS).

Phase one upgrades will benefit the Western Trade Coast heavy industrial zone, the Kwinana Strategic Industrial Area (SIA), the Coolangatta Industrial Estate, and the Kemerton SIA.

Phase two projects will benefit Chittering, Moora, Collie, and parts of metropolitan Perth. Phase three will expand Western Power's network to support the development of new green industries.

Energy and Decarbonisation Minister Amber-Jade Sanderson will also issue Directions to Western Power, Synergy, and Horizon Power under the Government Trading Enterprises Act 2023 to drive local content procurement.

In a related move, the state government has launched a request for information (RFI) process to identify existing transmission manufacturing capability in the state.

Greenpeace and the WA Conservation Council have made a third-party referral to the WA EPA over Woodside's proposed Browse CCS project.

The project would annually inject between up to four million tonnes of CO2, at an offshore sire about 425km north of Broome.

The CO₂ would originate from the proposed Browse to North West Shelf Project which proposes to generate about 80 million tonnes of reservoir CO₂ over its operating life.

The two environment groups say the project, which is undergoing EPBC Act assessment, hasn't been referred to the WA EPA by Woodside.

They say the project would have a significant effect on the WA environment, including an unacceptable impact on Scott Reef.

Submissions on the third-party referral are due by 24 October.

Statutory development - single-use plastic. The WA government has gazetted Environmental Protection (Prohibited Plastics and Balloons) Amendment Regulations.

New listings are in blue.

The UN Secretary-General, António Guterres, will host a Special High-Level Event on Climate Action on 24 September, in conjunction with the UN General Assembly.

The event provides an opportunity for countries to present their updated nationally determined contributions (NDCs). Any NDCs not received by September 30 won't be included in the official synthesis report that signals whether the 1.5°C and 2°C targets remain within reach.

Meanwhile, Climate Week NYC will run from September 21 to 28.

The Agreement on Marine Biological Diversity of Areas beyond National Jurisdiction — known as the BBNJ Agreement — has reached the required threshold of ratifications for entry into force.

"I welcome this historic achievement for the ocean and for multilateralism," said UN Secretary-General António Guterres.

"Covering more than two thirds of the ocean, the Agreement sets binding rules to conserve and sustainably use marine biodiversity, share benefits more fairly, create protected areas, and advance science and capacity-building," he said.

Australia has yet to ratify the treaty.

The Global Climate and Health Alliance has published a new report on the cradle to grave health toll of fossil fuels.

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