ESG Snapshot: Issue 113

This week's highlights include:

• Aluminium credits. The federal government is consulting on a $2 billion green aluminium scheme.
• Constitutional concerns. Despite its concerns that a WA planning Bill will erode the state's constitutional system, the state Opposition won't oppose it.
• Hydrogen cut. In a new energy Bill, NSW has slashed the green hydrogen target for its Renewable Fuel Obligation scheme, and delayed its start.
• No Queensland REZs. Queensland's energy roadmap Bill drops the concept of 'renewable energy zones' in favour of 'regional energy hubs'.
• Mandatory stewardship. A NSW EPA draft regulation would empower the agency to ensure small batteries are safely recovered and recycled.
• Ineffective. Tasmania's Auditor-General says oversight of the state's landfills is inadequate and the state's environment law is out of date.
• Boardroom guidance. An investor group has issued guidance on transition-ready boards, and on its expectations for physical climate risk disclosures.
• Right to repair. Farmers have called for the introduction of 'right to repair' legislation.
• Fewer birds. The latest IUCN threatened species Red List says 61% of bird species have declining populations – up from 44% in 2016 (international).
• More CCS. A new global report indicates the Santos Moomba project is storing more CO2 than Chevron's Barrow Island facility (international).

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

Consultation opportunity - green aluminium. The federal government is inviting feedback on the design of a $2 billion Green Aluminium Production Credit scheme that would support aluminium smelters to decarbonise.

The proposal would entitle smelters to negotiate an emissions-linked credit contract, if they greatly reduce their carbon emissions before 2036.

The credit would be payable per tonne of green aluminium produced for up to 10 years, or up until 2044, whichever is sooner.

Green aluminium is a priority sector under the Future Made in Australia National Interest Framework, which guides how the government identifies priority industries, and how public investment is provided.

Australia is the largest exporter of alumina and the sixth largest exporter of aluminium. Combined with bauxite, the sector contributed $17 billion to the economy in export value in FY24.

The federal government has released a roadmap for expanding the Commercial Building Disclosure (CBD) program.

Currently, the roadmap requires companies that own large commercial office buildings to obtain an energy efficiency rating and to disclose it when selling, leasing or subleasing the building, or space within it.

The expansion would include extending the scheme to other types of entities that own office buildings, such as trusts, commercial strata, and government entities.

Large tenants of office buildings will also be required to periodically obtain energy ratings for their tenanted space.

The scheme will also over time extend to large hotels, and buildings that only partially consist of office space.

The roadmap also describes further expansions of the scheme, once the initial phase of expansions is completed.

"In Australia, non-residential buildings contribute around 10% of total emissions in the economy, most of this outside the office sub-sector, representing significant opportunities to decarbonise," according to DCCEEW.

DCCEEW has scheduled a webinar on Australia's net zero plan for 23 October. Register here.

DCCEEW has launched a new First Nations Climate Action webpage. It is also inviting expressions of interest from First Nations People to join the Committee on Aboriginal and Torres Strait Islander Water Interests.

"As some migratory bird populations decrease, there is a growing need to minimise threats," says a DCCEEW report prepared for consultative meetings with China, Japan, and Korea on protecting migratory birds.

"The Australian Government recognises that efforts to conserve migratory birds in one country can only be effective with the cooperation and complementary actions in all countries that these birds visit," it says.

"Without urgent action to reduce or eliminate threats, further declines leading to extinctions are to be expected."

The Net Zero Economy Authority has released a case study video on Latrobe Magnesium, which plans to mine Latrobe Valley flyash to produce magnesium.

Meanwhile, the Net Zero Economy Authority has also applied to the Fair Work Commission for a community of interest determination to support workers at the closing Torrens Island B Power Station.  

This would formally establish an Energy Industry Jobs Plan (EIJP) for Torrens, allowing its workers to access additional supports from AGL, and potentially providing grants to local businesses.  

The Investor Group on Climate Change has released two new reports - one on building board capability for the climate transition, and the other on what investors expect from companies on physical climate risk.

The National Farmers Federation has called for a legislated "right to repair" for agricultural machinery.

"The NFF and its members believe there is a sensible solution that provides farmers with the choice to use qualified professionals for machinery repairs, without fear of voiding warranties or facing long waits to access mandated dealer networks," said NFF President David Jochinke.

"It is time to progress a legislative solution."

The Monash Sustainable Development Institute has released guidance for the healthcare sector on reducing carbon emissions, and lowering costs.

The report draws on insights from 135 healthcare professionals across 54 organisations.

Open consultations:

• Nature Repair Market. DCCEEW is consulting on the design of a proposed Enhancing Native Vegetation method under the Nature Repair Act. Comments are due by 4 November.

Statutory development - energy. Energy Minister David Janetzki has introduced an Energy Roadmap Amendment Bill that will repeal the state's renewable energy targets.

"Planning and investment in Queensland’s energy system will no longer be driven by targets that narrowly focus on renewable energy production in Queensland," the Bill says.

The Bill also replaces terminology regarding "renewable energy zones" with "regional energy hubs".

The report of a parliamentary inquiry into Queensland's container refund scheme has concluded that the scheme has generated more than $2.5 billion in revenue since its inception, but less than 40% has been returned to Queenslanders through refunds.

In addition, less than 2% has gone directly to charities, it concludes.

The report raises concern about the scheme giving "monopoly control of the scheme" to Coca-Cola and Lion, and makes a range of recommendations to improve its governance and operation.

In a statement of reservation, Labor members of the committee call for the LNP government to release a completed independent review of the governance of the scheme by Clayton Utz.

The Waste Management and Resource Recovery Association welcomed the report's recommendations, and urged the state government to act decisively to reform the scheme.

A new report from Beyond Zero Emissions says Gladstone can lead Australia's clean industrial future, but risks falling behind unless renewables, transmission and infrastructure are delivered on time.

"Despite a strong pipeline of projects and bold industry ambition, just 12% of the renewable energy capacity needed is currently operational or under construction," the BZE report concludes.

Climate Change Minister Penny Sharpe has released the final report of the independent Transmission Planning Review, which examined transmission planning arrangements in NSW and made recommendations for reform.

The report says the process for authorising Renewable Energy Zone network infrastructure projects should be simplified and accelerated as soon as possible.

It also recommends that EnergyCo be made the exclusive transmission infrastructure planner in the state, and calls for better engagement and transparency.

The government has also released its response to the recommendations.

Statutory development - energy. Climate Change Minister Penny Sharpe has introduced an Energy Legislation Amendment Bill, which amends six pieces of legislation.

The omnibus Bill will streamline the authorisation process for renewable energy zone network infrastructure projects, in line with recommendations of the Transmission Planning Review (above).

It also expands the eligibility for benefit sharing programs.

In addition, the bill creates a head of power to allow NSW to derogate from the National Electricity Rules "to create a clear framework to manage system strength in renewable energy zones", the Minister said.

Meanwhile, the bill also slashes the targets for the amount of green hydrogen that must be subsidised through NSW's Renewable Fuel Certificate scheme.

The scheme - which is currently due to start next year - will require fossil gas retailers and large gas users to purchase and surrender green hydrogen certificates, which are created by green hydrogen producers.

In its current form, the RFC scheme requires that liable entities purchase certificates representing a total of 1,780,000 gigajoules in 2027, and to pay a penalty fee if they fail to do so.

But the Bill slashes this to only 180,000GJ. The Bill also makes 2027 the first year of operation for the scheme.

"These changes ensure costs are not passed on to gas consumers until there is hydrogen available in the market," the Minister said.

Statutory development - product lifecycle. The NSW EPA has released a draft Product Lifecycle Responsibility Regulation, and an associated regulatory impact statement.

The Regulation would require brand owners of batteries supplied into NSW to join a product stewardship organisation (PSO), and would empower the EPA to enter into an agreement with the PSO to guide and oversee its activities.

If no agreement is struck, brand owners would have to individually prepare action plans to manage their batteries over their full lifecycle.

The regulation targets small, removable batteries and e-micromobility batteries. The RIS says that 214,000 tonnes of batteries were in circulation in NSW in FY25, and 36,000 tonnes were available for recycling or disposal.

It is estimated there were 318 fires linked to lithium-ion batteries in NSW in 2024.

Comments are due by 14 November.

Statutory development - landfills. The NSW EPA has released draft updated guidelines for solid waste landfills.

Changes include additional guidance on climate change adaptation, landfill fires, and odour incident management, and the inclusion of PFAS and brominated fire .

• Inclusion of certain emerging contaminants in the water monitoring suites, namely PFAS and brominated fire retardants.

Comments are due by 25 November.

Results from the August 2025 NSW Biodiversity Credits Supply Fund reverse auction show that the auction received 216 bids.

"Bids were evaluated in accordance with auction documentation and 1.1 million credits were approved across 215 credit types," according to the auction results.

The NSW government has released a prospectus designed to encourage domestic and international manufacturers of plant-based proteins to consider regional NSW as a base for their operations.

The prospectus identifies five regions that it says are particularly suited to plant-based protein manufacturing.

Statutory development - feral horses. The NSW Legislative Assembly has passed a Bill that would repeal legislation that prevents the culling of feral horses in alpine areas.

The Kosciuszko Wild Horse Heritage Repeal Bill is now before the Legislative Council.

Statutory development - planning. A planning Bill has passed the Legislative Assembly after the government agreed to make a range of amendments.

The Environmental Planning and Assessment Amendment (Planning System Reforms) Bill partly aims to speed approvals for major housing developments.

However, the Bill also writes a new object into the EP&A Act that deals with climate resilience.

The amendments moved by the government in the Assembly clarify that a streamlined assessment pathway available for major housing projects would not apply to resource projects or large renewable energy projects.

The Bill is now before the Legislative Council.

The NSW government has granted approval for Ark Energy's $1.2 billion, 435MW Richmond Valley solar farm near Rappville in the Northern Rivers.

The project will also support the community with a proposed $11 million Voluntary Planning Agreement with Richmond Valley Council.

Listed on the federal National Priority List, the Richmond Valley Solar and battery system project is Ark Energy's second project in NSW to receive planning approval, following approval last year of Stage 1 of the Bowmans Creek wind farm.

The Richmond Valley solar farm is the 14th approved by the government.

The NSW EPA has released an Order and Exemption allowing oyster shell waste to be applied to land if certain conditions are met.

VicGrid has announced three consortia will be invited to submit tenders for the delivery of transmission infrastructure to support the development of an offshore wind industry.

The three consortia are Gippsland Coast Connect (which includes Iberdrola and John Holland), Genesis Partnerships (AusNet and UGL), and Acciona (in conjunction with Genus Infrastructure).

A new report from Tasmania's Auditor-General concludes the governance and regulatory oversight of landfill management in the state is not effective.

The report concludes there is no comprehensive coordinated oversight of the state's landfills.

It also concludes the Environmental Management and Pollution Control Act 1994 (EMPCA) is overdue for review "and is no longer fit-for-purpose in addressing the complexity of contemporary environmental management, including landfill regulation".

The audit report notes that a review of EMPCA was supposed to start in 2019, but it was abandoned.

With federal funding, the Tasmanian government will conduct a feasibility study for a Common User Processing Facility (CUPF) for critical minerals.

The study, to be finalised next year, will focus on tin and tungsten in the state's north west.

The South Australian and federal governments have announced a $102.5 million summer plan in response to South Australia's algal bloom.

The summer plan includes $20.6 million for shellfish reef restoration, seagrass restoration research, community shellfish reef retorsion, and a targeted breeding program for vulnerable and threatened species.

Businesses that have already received a support grant will be able to apply for a second grant, and fisheries and aquaculture response and resilience grants will also be available.

Another $17.3 million will be spent on research and monitoring, with other funds earmarked for coastal recreational infrastructure and events grants.

Statutory development - Giant Cuttlefish protection. The state government has introduced a Bill to better safeguard Giant Cuttlefish that breed in the northern Spencer Gulf.

The Fisheries Management (Cuttlefish–Northern Spencer Gulf) Amendment Bill permanently bans the taking Giant Cuttlefish, unless authorised for research purposes by a ministerial permit.

Meanwhile, the state government says South Australia's giant cuttlefish population has had a successful hatching season, despite the algal bloom.

New monitoring suggests more than 600,000 eggs laid at Cuttlefish Coast have already hatched, with more than 90% of the estimated 800,000 eggs expected to hatch by the end of October.

Statutory development - major projects. The Opposition has signalled it won't oppose the government's State Development Bill, but it has expressed significant concerns about it, in debate in the Legislative Assembly.

The Bill establishes the office of the Coordinator General, and allows a range of existing legislation to be overridden, using "modification orders", to facilitate major projects that have strategic benefits to the state.

"I note that by giving the executive the ability to override or modify acts of Parliament, this bill risks eroding one of the cornerstones of our constitutional system," said Opposition leader Basil Zempilas, during debate on the Bill.

"Once Parliament concedes that its own laws can be suspended by executive order, it opens a precedent that future governments may use," Zempilas said.

"It is Parliament that makes and amends laws, not the Premier. That is the constitutional risk at the core of this bill. It is not a question of intent, but one of design."

"Through the new Coordinator General's office the bill equips the Premier with significant control to fast-track pet projects, potentially sidelining crucial local and agency-led decisions, as well as relaxing environmental, heritage and planning safeguards," he said.

"This centralisation of power has significant implications for transparency and oversight in this state, which are already being rapidly eroded at the hands of this Cook Labor government."

However, Minister for Energy and Decarbonisation, Amber-Jade Sanderson said the concerns were not warranted, and said the Bill was essential.

"It prioritises renewable energy projects needed to achieve net zero," the Minister said.

"It unlocks investment-ready precincts through state development areas," she said. "It gives proponents certainty that projects will be assessed efficiently and transparently. The bill is central to our state's decarbonisation strategy."

"This bill does not compromise environmental standards, planning requirements or community consultation processes," the Minister said.

"The EPA stays independent," she said. "Environmental approvals remain; state agreements are not overridden. The bill supports coordination. It does not bypass safeguards, override assessments or remove the need for the approval."

The Bill has passed the Legislative Assembly, and is now before the Legislative Council.

Environment Minister Matthew Swinbourn has instructed the WA EPA to provide advice on how current and future water demand might impact ecosystems in the West Pilbara.

The EPA must examine:

• the current state of key environmental and cultural values of the Millstream aquifer and other ecosystems that may be impacted by abstraction for the West Pilbara Water Supply Scheme.
• the potential impacts on those values posed by existing and future abstraction;
• the regulation and mitigation of those potential impacts;
• ecological studies and monitoring that may need to be expanded to underpin future decision-making; and
• the existing regulatory framework that applies to seawater desalination.

In line with advice from the WA Appeals Convenor, Environment Minister Matthew Swanbourn has dismissed an appeal against licence amendments granted to Chevron's Barrow Island LNG operations.

Statutory development - container deposits. The Northern Territory Assembly has passed a Bill that expands the Territory's container deposit scheme to include wine and spirit bottles, plain milk containers, and juice and flavoured milk containers of one litre or more.

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The International Union for the Conservation of Nature has released the latest update of its Red List of Threatened Species, which shows that three species of Arctic seal have moved closer to extinction.

Released at the IUCN World Congress, the update also shows that 61% of bird species have declining populations – up from 44% in 2016.  

The green sea turtle has improved in status from Endangered to Least Concern, thanks to decades of sustained conservation action. Found in tropical and subtropical waters worldwide, the global population of green turtles has increased approximately 28% since the 1970s, despite ongoing threats to some subpopulations. 

The World Congress also released a 20-year strategic vision, and a four-year work program.

The Global CCS Institute has released its latest annual Global Status of Carbon Capture and Storage report.

The report forecasts that global capture capacity in 2030 will be 337 million tonnes per annum, about five times higher than the current level of 64 million tonnes annually.

A section in the report on Australia indicates the Santos Moomba CCS project is storing more CO2 than Gorgon's Barrow Island project.

The report says the Santos project is storing 1.7 million tonnes annually. It also says the Santos and Chevron project are jointly storing 3.3 million tonnes, which would mean Barrow Island is storing 1.6 million tonnes annually.

The report also shows:

• Operational projects have seen a 54% year-on-year increase, from 50 projects to 77.
• There are 47 projects under construction, with a cumulative capture capacity of 44 Mtpa, and the total number of facilities in the development pipeline has increased from 628 to 734.
• Total CO₂ capture capacity (operating and in development) has grown 23% compared to the previous year, to 513 million tonnes per annum (Mtpa).

South Korea will mandate the use of blended sustainable aviation fuel for international flights departing its airports from 2027, reports Green Air News.

The blending mandate will start at 1% and rise to 10% by 2035.

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