ESG Snapshot: Issue 120

This week's highlights include:

• Insurance for neighbours. The energy infrastructure commissioner has weighed in on public liability insurance for landowners next to transmission lines and wind and solar farms.
• More gas. A new Victorian Bill would empower the state government to issue orders to improve gas infrastructure.
• Lower coal costs. A Queensland regulation permanently waives waste levy fees for coal power plants wanting to dispose of ash.
• NSW inquiries. NSW parliamentary inquiries into fossil fuel sector emissions and waste to energy projects have both scheduled public hearings.
• More carbon credits. A proposed new ACCU method would generate carbon credits from reduced timber harvesting.
• Coal mine liability. A Victorian Bill to establish new liability arrangements for owners of Latrobe Valley coal mines will pass with Opposition support.
• Shadow shake-up. Victoria has a new shadow environment minister, and the shadow energy minister has a new title.

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

DCCEEW has released an update on initiatives that Australia joined at COP30, which include the Industrial Deep Decarbonisation Initiative, and the Belem Health Action Plan.

DCCEEW has released guidance on changed arrangements for agricultural exemptions under the EPBC Act.

DCCEEW has released a report on Impacts on birds and bats from onshore wind farms in Australia, and another on Impacts on birds from offshore wind farms in Australia.

The Australian Energy Infrastructure Commissioner has released a Position Statement Public Liability Insurance for Landholders Neighbouring Energy Infrastructure.

The position statement calls for a nationally consistent framework to ensure rural landholders neighbouring large-scale renewable energy and transmission projects are not exposed to increased public liability insurance risks or costs.

Consultation opportunity - ACCUs. The federal government's Emissions Reduction Assurance Committee has released a proposed Improved Native Forest Management in Multiple-use Public Native Forests ACCU method.

For INFM projects to receive ACCUs, they must result in at least a 20% reduction in harvesting, relative to the baseline harvest level.

The method was first suggested by the NSW government. Comments are due by 30 January.

Transcript is now available of a December 2 Senate Estimates hearing attended by climate and environment officials.

With support from Export Finance Australia, Australian company Vulcan Energy has finalised a financing agreement for its €2.193 billion (A$3.9 billion) Phase One Lionheart Project in Germany.

The Lionheart Project will produce battery-quality lithium from geothermal brine in the Upper Rhine Valley, and will simultaneously generate renewable heat and power.

"The project will substantially contribute to the climate goals and industrial decarbonisation efforts of both Australia and Europe," Export Finance Australia said.

The federal industry department has signed a memorandum of understanding with China's Ministry of Industry and Information Technology that establishes a policy dialogue on steel decarbonisation.

The governments of Australia and New Zealand have held the third Australia-New Zealand Climate and Finance Dialogue in Auckland, attended by their respective climate ministers and treasurers.

A statement issued after the meeting lists a range of commitments, including the establishment of a government-industry working group "to help ensure insurance remains accessible".

The federal government has placed the Mithaka Cultural Landscape in southwest Queensland on the National Heritage List, in recognition of the site's outstanding Indigenous heritage value.

Spanning more than 33,000 square kilometres in Channel Country, the site sits within the traditional lands of the Mithaka People, and was the heart of an extensive production, trade and exchange, and ceremonial network.

ARENA has announced a $151 million Solar Sunshot grant for the establishment of a 500MW per year solar module manufacturing facility in NSW's Hunter Valley. 

The Hunter Valley Solar Foundry project is an initiative of the Sunman Group, which was founded by solar pioneer Dr Zhengrong Shi.

The Clean Energy Finance Corporation - in conjunction with Five V Capital - has taken an equity stake in Agile Energy, an Australian provider of behind-the-meter solar and battery energy solutions for commercial and industrial businesses.

The investment will support Agile's next phase of growth, as it scales to deliver more than 200MW of solar and battery projects.

New CSIRO research shows that new zonings and tighter fishing regulations adopted in the Great Barrier Reef in 2004 have played an important role in recovering fish populations, reducing Crown of Thorns starfish outbreaks, and mitigating coral loss.

The ACCC will not oppose Igneo Infrastructure Partners' proposed acquisition of Benedict Recycling Pty Ltd, following transaction changes to address initial ACCC concerns.

Igneo manages the fund that owns a company operating in NSW under the Recycle Central brand. The Igneo company and Benedict Recycling overlap in the supply of building and demolition waste processing services in the Newcastle region.

Open consultations:

• ACCU register. The Clean Energy Regulator has released a discussion paper on proposed improvements to the ACCU projects and contracts register. Comments are due by 19 December.
• Decommissioning offshore oil and gas and CCS projects. The federal government is seeking feedback on proposed reforms to decommissioning and financial assurance arrangements for the offshore oil and gas industry. Comments are due by 13 January.
• Environmental standards. The federal government has released a draft National Environmental Standard on Matters of National Environmental Significance (MNES), and another on environmental offsets. Comments are due by 30 January.

A parliamentary committee inquiry into the government's Energy Roadmap Bill has released its report.

The majority report recommends that the Bill - which will axe the state's renewable energy targets - be passed.

In a dissenting report, Labor said the energy roadmap is "deliberately vague", and will result in higher prices and greater emissions.

The Queensland government has gazetted the Waste Reduction and Recycling and Other Legislation Amendment Regulation 2025.

The regulation grants all coal-fired power stations a permanent waste levy exemption for all forms of coal ash waste, permanently extending an existing temporary arrangement.

"The imposition of the waste levy to coal fired power stations would be a new and significant cost to this industry, and may result in increased costs for electricity users," says an explanatory note.

"If the waste levy was to be charged on this waste type, it would be a substantial economic cost to the industry and would likely be passed on to electricity users, significantly increasing the cost of electricity," it says.

The Queensland government says the federal EPBC reforms will pose "serious safety risks to producers and communities" in regional parts of the state, through increased bushfire risks, and increased risk to communities in water catchment areas.

Minister for Primary Industries Tony Perrett said the reform package "completely ignores the realities of farming and imposes more red tape for people who are already doing the right thing".

Minister for Natural Resources and Mines Dale Last said the deal "specifically punishes the sectors that underpin Queensland's economy".

A parliamentary committee inquiry into emissions from the fossil fuel sector has scheduled a hearing for this Friday. Those giving evidence include the Minerals Council, the NSW Minerals Council, Common Capital, and the Institute for Energy Economics and Financial Analysis.

The NSW government has released its response to a parliamentary committee inquiry into electricity outages affecting the Far West of the state in October 2024.

The government says it supports a recommendation to investigate options for establishing 'microgrids' for the towns in the Central Darling Shire and Unincorporated Area.

A parliamentary committee inquiry into proposed energy from waste facilities has scheduled a hearing for next Monday.

The NSW EPA has gazetted a new Resource Recovery Order for acid sulfate soil. 

The Low Methane Beef project has released its first genomic Research Breeding Values (RBVs) for methane emissions in beef cattle, which will help enable methane emissions traits to be included in beef cattle breeding objectives.

The ninth post-floods buyback house auction in Lismore has resulted in the auction of 12 homes that will now be relocated. The properties sold for a total of $250,900.

Statutory development - gas pipelines. The Victorian government has introduced the National Gas (Victoria) Amendment Bill 2025, "to support the improvement and expansion of Victoria's declared gas transmission system in the interests of ongoing security and reliability," according to Climate and Energy Minister Lily D'Ambrosio.

The Bill gives the Minister the power to make orders to to make orders that require a declared transmission system service provider or prospective provider to plan.

"This power is necessary to ensure that critical pipeline infrastructure projects are built in time to maintain adequate supplies of gas to Victorian homes and industry," Energy Minister Lily D'Ambrosio told Parliament.

"This power guards against the misalignment of interests that exist between pipeline monopolists and energy consumers as a direct result of the privatisation of Victoria’s gas transmission pipeline network."

Statutory development - financial assurances for mines. A Bill to introduce a new liability scheme for major coal mines has passed the Legislative Assembly, with the support of the Opposition.

The Mineral Resources (Sustainable Development) Amendment (Financial Assurance) Bill 2025 will:

• Introduce a new trailing liabilities scheme relating to the rehabilitation of the three Latrobe Valley coal mines, which are known as declared miens.
• Clarify the requirements for and operation of rehabilitation plans for the mines.
• Require notice of any change in control of the mines.

The Bill, which is similar to federal legislation on decommissioning offshore infrastructure, aims to protect Victorian taxpayers from a worst-case scenario where a declared mine licensee doesn't meet its rehabilitation obligations.

The Bill now goes to the Legislative Council.

Victoria is on track to meet its renewable energy target in 2025, but meeting future targets will be more difficult, concludes a report by the Victorian Auditor General's Office.

"In the Australian Energy Market Operator's 'committed and anticipated developments' reliability assessment, Victoria has enough energy supply to meet its needs out to 2030," the report notes.

"But this depends on key projects being completed on time," it says.

"While new projects will increase energy generation and storage capacity, many projects face delays. This also does not allow for demand that is higher than forecast or incorporate other known risks," the report says.

"This includes gas shortages, which are expected from 2026, as well as planned power plant maintenance and adverse weather conditions."

If these risks are not successfully managed, Victoria would be more likely to face electricity shortfalls after Yallourn coal-fired power station closes in mid-2028, the report says.

"To meet Victoria's future targets and make sure electricity supply meets demand, the department should develop contingency plans to address known risks," it concludes.

New Opposition leader Jess Wilson has appointed Nick McGowan as shadow environment minister, replacing Brad Rowswell.

David Davis still holds the energy shadow portfolio, which has been renamed an energy and emissions reduction portfolio. He also retains the shadow resources portfolio.

Victorian energy retailers surrendered 6.5 million energy efficiency certificates worth more than $540 million to meet their 2024 obligations under the Victorian Energy Upgrades scheme, according to the Essential Services Commission.

The list of organisations giving evidence to Wednesday's parliamentary committee hearing on decommissioning oil and gas infrastructure includes the Australian Energy Producers, the Centre of Decommissioning, and the Institute for Energy Economics and Financial Analysis.

"Environmental extremes create surges in capacity needs for our systems, placing pressures on all assets and our ability to manage the impacts on our community," says Melbourne Water's submission to an Essential Services Commission review of its proposed new prices.

"Our modelling shows that under extreme dry conditions, such as those seen in the Millenium Drought, water storages can drop from the high zone to the critical water use only zone in as little as three years," the submission says.

The federal and Victorian governments have announced a joint $2.95 million investment in research to support the initial stages of a new plantation timber processing facility in Portland, producing laminated timber and lumber.

The Victorian government has released a preliminary recommendation from its Scientific Advisory Committee to classify European carp as a potentially threatening process for native fish and estuarine habitats.

Consultation opportunity - financial contributions to grid infrastructure. The state government is consulting on a simplified payment model for major energy projects requiring a connection to Western Australia's main energy grid.

Under the proposal, generators, storage providers, and large energy users requiring a connection to the South West Interconnected System of more than 10MW will pay $100,000 per MW.

Energy and Decarbonisation Minister Amber-Jade Sanderson says her three-day visit to South Korea this week aims to further cooperation in areas such as green iron, green ammonia utilisation, and carbon capture, utilisation and storage.

The South West Interconnected System (SWIS) reached a record 55.78% renewable energy contribution in November, eclipsing the previous record of 49%, set in November 2024.

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Westpac has delivered a sustainability market update.

The update notes the bank's release of its new climate transition plan and sustainability strategy last month, and says the bank remains the largest financier of renewable energy projects in Australia.

The update notes that the application of the bank's new carbon-intensive sector requirements has resulted in 55% of assessed customers having their corporate transition plan accepted, and 36% having their CTP accepted but with engagement to improve its content.

A total of 9% were declined new or renewed finance.

The requirements apply to the banks customers within the oil and gas, metallurgical coal mining, and coal-fired power generation sectors.

The Science-Based Targets initiative is inviting applications to pilot its draft Power Sector Net Zero Standard, and has published new materials on chemical sector decarbonisation.

InfluenceMap has released a new update on Corporate Advocacy on the UN Global Plastics Treaty.

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