ESG Snapshot: Issue 57

This week's highlights include:

• Biodiversity law revamp. The NSW government has introduced a Bill that will overhaul the state's biodiversity offsets scheme.
• EPA changes. A WA Bill will overhaul how the state's EPA operates, and will expand its Board.
• Listening mode. The NSW government says it is open to agreeing to an amended version of a renewables Bill proposed by an independent MP.
• Reporting gap. WA hasn't issued a state of the environment report since 2007, a state parliamentary inquiry has pointed out.
• Company news. BHP is facing a scope 3 emissions shareholder resolution, and Commbank has deferred setting an emissions target for financed agricultural emissions.
• Net zero intensive. Applications are being accepted for a short net-zero executive leadership course.
• AER looks for network innovation. The Australian Energy Regulator is eager to test new ideas that could cut grid infrastructure capex costs.
• Oceans plan. DCCEEW has released a sustainable oceans plan.

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The Senate committee inquiring into the Middle Arm industrial precinct in the Northern Territory is scheduled to issue its report today.

Consultation opportunity - sustainable oceans. DCCEEW has released a draft sustainable ocean plan.

The draft plan notes that Australia has the third largest maritime jurisdiction in the world, and more than 85% of Australians live within 50 kilometres of the coast. Comments are due by 13 September.

Australian Energy Regulator Chair, Clare Savage, has urged network service providers to submit innovative proposals to help reduce the capex costs of the energy transition, which can be tested through a "regulatory sandbox" approach.

Climate Change Minister Chris Bowen has gazetted the Industry Research and Development (First Nations Renewable Hydrogen Engagement Fund Program) Instrument 2024.

An explanatory statement says the growth of Australia's hydrogen industry is expected to take place largely on land traditionally owned by First Nations people. The $4 million Fund will support First Nations communities and organisations to: 

• represent their interests and concerns in ongoing project consultations and negotiations based on free, prior, and informed consent to development; and
• capture ongoing social and economic value from renewable hydrogen projects; and
• respond to the growing number of renewable hydrogen projects that are in development.

From 26 August, Westpac can access a discount variable home loan to make energy efficiency improvements or improve climate resilience.

The discount loans are being provided with $160 million in financial support from the Clean Energy Finance Corporation, which is being delivered through the CEFC's $1 billion Household Energy Upgrades Fund.

The federal government has granted Intergroup Ltd a hazardous waste permit for the import from New Zealand of 1,500 tonnes of waste contaminated with PFAS and PFOA, for treatment at the Enviropacific facility in Altona.

The Monash Sustainable Development Institute is offering an intensive Net Zero Academy Executive Leadership Program, from 28 October to 1 November.

The state government will provide a renewable energy-based support package to Rio Tinto to secure the long-term future of its Boyne Island aluminium smelter near Gladstone.

The support package, which will be accessible to Rio Tinto from 2029, requires the company to operate the smelter at full capacity until 2040.

Rio Tinto has also committed to invest in energy demand response capabilities, so that it can reduce its electricity demand at times of tight supply.

The partnership "will use firmed renewables to safeguard jobs at Boyne Smelter for the future", said Premier Steven Miles. 

Rio Tinto chief executive for Australia, Kellie Parker, said the agreement "paves the way for a competitive, green-energy powered Boyne Smelter, supporting employment and lowering Australia’s carbon footprint".

“While this is a critical part of the puzzle, we have more to do," Parker said. "We will continue to engage with the federal government on supportive industry policy to help sustain Australia’s green aluminium sector for the future."

Consultation opportunity - biodiversity. A consultation paper on a new performance framework for Queensland's biodiversity conservation strategy proposes six targets for 2030:

• Effectively protecting areas of high biodiversity value to ensure net gain in extent and condition, as part of the national 30 by 30 target.
• Ensuring restoration work is underway in up to 2 million hectares of priority degraded ecosystems.
• Improving threatened species recovery and reducing overall extinction risk.
• Mitigating key threats to biodiversity and enhancing nature's resilience to change.
• Integrating biodiversity into relevant decisions of government, business and community.
• Increasing awareness and engagement in conservation efforts.

Information sessions will take place on August 20 and 21, and survey responses are due by 11 September.

The Labor government says it will build a new $15 million skills and training facility in Townsville to help develop the region's green hydrogen industry workforce, if it wins this year's state election, with another proposed for Rockhampton.

The state government has appointed former Federal Court judge, Dr Annabelle Bennett, as the new Chair of the Reef 2050 Advisory Committee.

Statutory development - biodiversity. Environment Minister Penny Sharpe has introduced a Bill to overhaul the state's biodiversity offsets scheme.

The introduction of the Biodiversity Conservation Amendment (Biodiversity Offsets Scheme) Bill 2024 follows a review of the biodiversity offsets scheme by Ken Henry.

"Biodiversity in New South Wales is in crisis," Sharpe told the Legislative Council. "Government cannot be the manager of steady decline. The government's goal is to leave nature better off than it found it."

The Bill:

• requires the scheme to transition over time from a "no net loss" approach to a "net positive" approach.
• specifies steps that must be taken to ensure biodiversity offsets are used as a genuine last resort, and establishes a public register showing commitments made by proponents of approved projects to avoid and minimise biodiversity impacts.
• introduces a new requirement for the Environment Minister to provide concurrence for certain state significant projects that will have conditions requiring the use of biodiversity credits.
• overhauls the administration of the Biodiversity Conservation Fund and the Biodiversity Conservation Trust, including through a new requirement that the Trust acquit offset obligations paid into the fund within three years.
• introduces new constraints on developers simply paying levies into the Trust to meet their offset obligations, instead of purchasing biodiversity credits.
• introduces measures to improve the quality and consistency of biodiversity assessments.
• facilitates the making of regulations that would apply the offsets scheme if a landholder proposes development on land that is mapped on the Biodiversity Values Map. The regulations will incorporate a review process, if landholders believe the mapping is inaccurate.

The Bill has been referred to Portfolio Committee No. 7 for review.

A new report from the NSW Audit Office has found the NSW Department of Climate Change, Energy, the Environment and Water is not effectively operating programs to protect threatened species and ecological communities.

Under its flagship Saving our Species program, DCCEEW is delivering conservation actions for less than one‑third of all threatened species and ecological communities, the audit report says.

"This number has reduced over time, in line with reduced program funding," it says. 

"The number of species and ecological communities that DCCEEW actively manages, or funds other entities to manage, has reduced by 19% since 2018–19," the report says.

"This decrease corresponds with a decline in program funding of 25% in 2021–22."

DCCEEW did not deliver any conservation activities, including monitoring, for 69% of threatened species and ecological communities in 2022–23, it says.

Statutory development - Environmental Trust. Environment Minister Penny Sharpe has introduced the Environmental Trust Amendment Bill 2024, which increases the membership of the Environmental Trust from five members to six members, with the additional member to be a person who identifies as Aboriginal.

Statutory development - renewable energy. Government minister Jihad Dib has signalled that Labor is open to supporting a renewable energy Bill proposed by independent MP for Barwon, Roy Butler, subject to an agreement on amendments.

The Electricity Infrastructure Investment Amendment (Renewable Energy Sector Plan) Bill 2024 proposed by Butler would amend provisions for planning by the Renewable Energy Sector Board, which comprises representatives of unions, consumers, and energy specialists.

The amendments aim to increase the scope for public involvement in the Board's preparation of a renewable energy sector plan, to better ensure local businesses and communities benefit from Renewable Energy Zones.

Butler's far-west electorate covers about 40% of the state.

The state government has placed on exhibition Goldwind's proposed $2.8 billion 1,400MW Baldon wind farm project, which would be located in the Southwest Renewable Energy Zone.

The project would be accompanied by a 200MW/400MWh energy storage system. It would be built in two stages, with stage one comprising 45 turbines and stage two comprising 135.

A community survey identified 72% support for the project and its potential community benefits.

Grant opportunity - plastics. The NSW EPA is inviting applications for funding through its Plastics Research Program, with grants of between $250,000 and $500,000 on offer. Applications close on 5 September.

Open consultations:

• Renewable fuels. The state government has released a report on Opportunities for a renewable fuel industry in NSW, which canvasses views on the merits of targets and mandates. Comments are due by 30 August.

Clean energy technology scientist Dr Bjorn Sturmberg, whose research focuses on integrating EVs and batteries into the grid, has been awarded the 2024 ACT Emerging Scientist of the Year Award.

The ACT government has issued an updated Transport infrastructure plan.

Open consultations:

• Planning for decarbonisation. The Department of the Premier and Cabinet has released a draft State Development Coordination and Facilitation Bill, designed to ensure the regulatory and planning system is fit-for-purpose for the net-zero transition. Comments are due by 31 August.

Statutory development - environmental approvals. The WA government says its Environmental Protection Act Amendment Bill that will:

• abolish the right of appeal against a decision made by the EPA not to assess a project, with the EPA instead required to publish a summary of reasons for any such decision.
• allow other agencies to issue their approvals for projects before the EPA issues its environmental impact assessment and recommendations, "potentially saving years", according to the state government.
• require the EPA to act in accordance with a Statement of Expectation from the Environment Minister.
• expand the membership of the EPA board from five to nine members.

The Bill follows a review of the state's approvals system led by former EPA Chair Dr Paul Vogel. Various other recommendations made by Dr Vogel are being introduced administratively.

A new parliamentary committee report, titled Green and gold: Securing economic growth with sustainable investments, concludes that WA's commitment to net zero emissions "plays a particularly important role in securing international investment".

The report recommends that the Treasurer consider expanding WA's green bond issuance program.

In addition, it says the government should ensure reports on WA's progress to net zero emissions be sufficiently transparent "to ensure investor confidence".

The report notes that other Australian jurisdictions regularly publish state of the environment reports, but WA hasn't done so since 2007, even though the WA Biodiversity Science Institute is well placed to provide the relevant information.

The report also notes the importance of TNFD-style nature reporting, but describes the issue as "too significant" to be dealt with under the auspices of a general ESG inquiry.

The Smart Energy Council has released a 10-point plan titled Powering Western Australia's future.

New listings are in blue.

"Every day that companies wait for clarity on what to do about their scope 3 emissions, we lose the opportunity to reduce and remove thousands of tonnes of greenhouse gas emissions," a leading global carbon markets integrity body has warned.

The  Integrity Council for the Voluntary Carbon Market (ICVCM) was commenting on indications from the Science-Based Targets initiative that it would not decide until next year on the role of carbon credits in meeting scope 3 emissions reductions requirements.

The ICVCM focuses on setting standards for high integrity in the global carbon market.

Meanwhile, a separate body known as the Voluntary Carbon Markets Initiative, which focuses on providing guidance on how to make credible claims about the use of carbon credits, is about to launch a new consultation on using carbon credits to deal with scope 3 emissions.

New Zealand's Climate Change Commission has concluded climate change adaptation is not happening at the required scale or pace.

Recommendations in the Commission's first monitoring report on the national adaptation plan include better planning for managed retreat.

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