ESG Snapshot: Issue 58

This week's highlights include:

• Circularity. The Productivity Commission will nominate Australia's priority circular economy opportunities.
• Mandatory disclosure. The Senate has cleared the way for Australia to have a mandatory climate-related financial disclosure regime.
• PFAS inquiry. Senator Lidia Thorpe has instigated a new inquiry into PFAS.
• Evolving the CIS. A senior government official has described how the Capacity Investment Scheme is likely to evolve.
• Benefits fund objections. The Clean Energy Council has criticised Victoria's proposed industry-financed, VicGrid-administered community fund.
• Transformation agency. The Senate has voted for a Bill to establish a net zero authority, with the Coalition dismissing it as a "union wish list".
• Farmer concerns. A new National Farmers Federation survey has identified growing concern about environmental and climate policies.
• Company news. APA Group is facing a Beetaloo-related shareholder resolution, and Cleanaway is playing a long game on waste to energy.

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

Treasurer Jim Chalmers has instructed the Productivity Commission to inquire into opportunities in the circular economy - a move that is in line with a recommendation of the Circular Economy Ministerial Advisory Group that reports to Minister Tanya Plibersek.

Terms of reference require the Commission to investigate the scope to lift Australia's materials productivity and efficiency, and to identify priority circular economy opportunities. It must report within 12 months.

Statutory development - Net Zero Economy Authority. The Senate has passed with amendments the Net Zero Economy Authority Bill, which aims to "to promote orderly and positive economic transformation", according to the explanatory memorandum.

The Coalition unsuccessfully moved an amendment describing the Bill as "a long-held union wish list item that masks itself as being an authority for the regions and for the net zero transition, but is really another Canberra bureaucracy".

As coal-fired power stations close, "zero-emissions nuclear technology will provide well-paid employment opportunities and economic security for generations in rural, regional, and remote communities", the Coalition amendment said.

Statutory development - mandatory climate disclosure. The Senate has also passed with amendments the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill, which phases in a mandatory climate-related financial disclosure regime.

The Senate has agreed to a motion by independent Senator Lidia Thorpe to establish a select committee inquiring into PFAS, with a reporting date of August next year.

The broad terms of reference for the inquiry include evaluating existing regulatory frameworks and the liability of government agencies and industry.

Woodside, Santos, the Murujuga Aboriginal Corporation, and the Australian Conservation Foundation are among those who will appear before Senate committee today.

The committee is inquiring into the Protecting the Spirit of Sea Country Bill that was introduced last year by Greens Senator Dorinda Cox.

The Australian Bureau of Statistics has released its first annual Measuring What Matters dashboard, which shows data and trends across 50 wellbeing indicators grouped under themes including sustainability.

The dashboard has data on average exposure to PM2.5 particle pollution, waste generated per person, carbon emissions, protected areas, and biological diversity.

The federal government's new advisory Nature Repair Committee will be chaired by Steve McCutcheon, a director of Horticulture Innovation Australia, and a board member of JAS-ANZ. Other members comprise:

• James Fitzsimons (senior advisor, global protection strategies at the Nature Conservancy).
• Brendan Foran, (Chair of GreenCollar, and AustraHort, and a board member of Landcare Australia, and the North East Catchment Management Authority).
• Tyronne Garstone (chief executive at the Kimberley Land Council).
• Fiona Simson (member of the Climate Change Authority, and Chair of the Future Foods Systems CRC).
• Siobhan Toohill (former chief sustainability officer at Westpac).

The federal government has established a new green metals advisory panel, with Minister for Industry and Science Ed Husic saying green metals could deliver up to $122 billion a year to Australia's economy by 2040. Panel members include:

• Mark Cain, chief executive of the Australian Steel Institute.
• Paul Farrow, national secretary of the Australian Workers Union. 
• Paul Howes, national managing partner, KPMG. 
• Marghanita Johnson, chief executive of the Australian Aluminium Council.
• Steve Murphy, national secretary of the AMWU.
• Jenny Selway, CEO of the Heavy Industry Low-Carbon Transition Cooperative Research Centre.
• Rebecca Tomkinson, CEO of the WA Chamber of Minerals and Energy.

Statutory development and consultation opportunity - illegal logging. The federal government is seeking comments by 13 September on draft Illegal Logging Prohibition Rules 2024.

The rules will operate under the auspices of the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill, which is currently before Parliament.

The Senate committee inquiring into the government's Nature Positive bills has again had its reporting deadline extended, this time until 9 September.

Government and Coalition senators involved in a Senate committee inquiry into the proposed Middle Arm development precinct in Darwin have all expressed support for the project.

In the newly-released committee report, government senators described Middle Arm as "an important way of diversifying industry in the NT and setting up our economy for a sustainable future".

Coalition senators described it as "essential to protect and promote the Northern Territory economy".

However, Greens senators said the government's decision to commit $1.5 billion to the precinct constituted pork barrelling, and no money should go to fossil fuel projects within it.

Independent Senator David Pocock said Middle Arm would have fossil gas "at its core", and described carbon capture and storage as "a figleaf for the expansion of the fossil fuel industry".

Senator Lidia Thorpe said "the life threatening and ecocidal" precinct must not proceed.

The head of DCCEEW's new Office of the Capacity Investment Scheme, Matt Brine, has described "evolving areas of the CIS design that we are working on for upcoming tenders", in a speech to the recent Clean Energy Investor conference.

The areas discussed by Brine include demand response and virtual power plants, which until now have been excluded.

"We are keen to address industry calls to include, for example, virtual power plants and aggregations of facilities that on their own would not meet the minimum 30 MW threshold for CIS participation," he said.

DCCEEW is accepting applications until 8 September for its new Youth Advisory Council on International Climate Change.

The council will advise Minister Chris Bowen on issues to support Australia's commitment to reach net-zero by 2050 and to advance the energy transition.

It will consist of 10 young people aged 18 to 30, and will operate until December 2025.

The Australian Packaging Covenant Organisation (APCO) has announced an overhaul of its fee structure from FY27, with higher fees paid for materials that are more costly to recover, recycle and or dispose.

"This will incentivise those brand owners that eliminate and reduce packaging, adopt reuse models, and transition to materials and formats that are easier to recycle," APCO says.  

When Australia's new 2035 emissions reduction target is set in February, it is likely to immediately impact the ACCU market, according to energy and climate analyst Reputex.

The decision will re-shape ACCU prices just prior to the first (31 March) compliance deadline for the reformed Safeguard Mechanism, Reputex points out.

Reputex concludes that Safeguard baseline decline rates (currently set at an average of 4.9% annually) will need to be strengthened in FY27 if Australia adopts a 2035 target that requires greater than a 67% reduction on 2005 levels.

The Climate Change Authority has suggested in its initial advice that a 2035 target of between 65% and 75% might be appropriate.

The government has launched an independent statutory review of the $7 billion Northern Australia Infrastructure Facility (NAIF).

The NAIF now has $2 billion invested in infrastructure projects across the north, with a further $2.4 billion committed, and 31 projects in its pre-investment pipeline.

The five-month review will be led by Warren Snowdon (who was a minister in the Rudd government), supported by a panel comprising Professor Peter Yu from Western Australia and Dr Lisa Caffery from Queensland.

Parliament's joint committee on treaties has recommended that the Australia-Tuvalu Falepili Union treaty be ratified.

The treaty will strengthen cooperation on responding to climate change, as well as cooperation on broader national security interests.

A Senate committee inquiry into waste and recycling policy has released transcript of its most recent hearing.

A Senate committee inquiry into the transition to electric vehicles has scheduled a September 5 hearing in Brisbane.

A National Farmers Federation survey of farmers has found that 54.9% are very concerned about federal environmental laws (up 10.4% on last year's survey), and 62.4% are very concerned about federal climate laws (up 10%).

The Insurance Council of Australia has released its latest annual Catastrophe resilience report, showing that the impact of extreme weather on the Australian economy has more than tripled over the last three decades.

Award opportunity. Nominations are now being accepted for the 36th annual Banksia sustainability awards. Entries must be submitted by 6 December.

Open consultations:

• Biodiversity. Survey responses on a consultation paper on a new performance framework for Queensland's biodiversity conservation strategy are due by 11 September.
  

Consultation opportunity - coal mines. The EPA is surveying community members on the regulation of coal mines.

The consultation aims to complement the statutory five-yearly reviews of coal mine licences, the majority of which are due in 2024. The EPA administers a total of 59 coal mine licences. Comments are due by 2 October.

The state government has granted planning consent to Lightsource's $880 million 450MW Goulburn River solar farm and battery energy storage system.

The project, located between the Central-West Orana REZ and the Hunter-Central Coast REZ, will eliminate about 733,000 tonnes of greenhouse gas annually, and will have access to existing transmission infrastructure, according to the state government.

The project is the ninth solar farm and twenty-fifth renewable energy project approved by the Minns state government.

Cleanaway's EPBC referral for an extension of the Lucas Height landfill is now open for public comment.

New climate modelling contains the finest resolution modelling ever made available to state and local governments.

The projections indicate that NSW is expected to experience average warming of 1.2°C by 2050, and 1.3°C by 2090 in a low-emissions scenario, and warming of 2°C by 2050, and 4°C by 2090 in a high-emissions scenario. 

The NARCliM projections, which were developed in consultation with other state governments, are available at the 4km scale for south-east Australia, and a coarser (20km) scale for Australasia generally.

EPA chief executive Tony Chappel, and senior executives from BHP and Yancoal are among those who gave evidence at a recent parliamentary committee hearing into post-mining land use.

The state government has issued a new sustainability guide for owners and managers of heritage buildings.

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.

The Clean Energy Council says it doesn't support the state government's proposed design for a mandatory, industry-financed, VicGrid-administered Community Energy Fund that would make payments to councils in renewable energy zones.

In a submission to the state government, the Clean Energy Council estimates that a hybrid 150MW battery energy storage system and 300MW solar farm in NSW would be liable to pay $10,000 annually to the relevant local government, plus an amount specified through a voluntary planning agreement.

"If the same project was in Victoria it could be liable for $750,000," the submission says.

"In 2020, the Clean Energy Council surveyed members on rates paid across the country, the data showed that per MW, projects in Victoria were paying between $3000 and almost $3500 per MW, well above the 2nd highest of almost $1,000 per MW in Queensland," the submission adds.

"Projects have finite resources and the Clean Energy Council has heard from members that mandatory contributions to a REZ Community Energy Fund would be reallocated from project-led benefit funds," it says.

"If VicGrid is determined to mandate proponent contributions towards REZ Community Energy Funds, CEC submits that VicGrid should explore opportunities [for] lowering electricity bills for families and residents living in REZs," it adds.

The state government is conducting a Request for Information process for a Wind Worker Training Centre and a Renewable Hydrogen Worker Training Centre.

The government is also designing an SEC Centre of Training Excellence, which aims to attract and train the workforce needed to support Victoria's energy transition.

Consultation opportunity - single-use plastics. The state government is seeking views on a phase-out of problematic single-use plastics. Comments are due by 1 October.

The state government has placed on exhibition the EIS for a battery anode material facility proposed by Renascor Resources, which would produce spherical graphite for use in lithium-ion batteries. Comments are due by 27 September.

Stage one construction is expected to start next year, resulting in the production of about 50,000 tonnes of spherical graphite. In stage two, production would expand to 100,000 tonnes. The federal government last month awarded a $5 million critical minerals grant to the project.

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.

The incoming CLP government says the gas industry will be able to "proceed with certainty" when it takes office, stating that the gas from the Beetaloo "can be used to transition to renewables and create a new clean energy source".

In a plan released in the lead-up to Saturday's election, the CLP says it also aims to halve the time it takes to get development approvals in the Territory.

The CLP will also double the Territory's solar feed in tariff in peak times "lowering your energy bills and creating a greener future for our kids", the plan says.

"We'll also double the battery bonus up to $12,000 so you can store the energy your solar panels produce," it says.

New listings are in blue.

The US has emerged as the top climate-tech financing market in 2024, with $6.7 billion mobilised in the first half of the year, according to Bloomberg NEF.

Most of this financing was for clean power companies — renewable energy equipment makers and project developers — as well as startups along the energy storage value chain. Climate-tech companies from mainland China (which was the top market last year) raised $5.1 billion in the same period. Canada placed third with $1.8 billion.

There has been a marked slowdown in overall climate-tech equity funding across both public and private markets this year. While almost $44 billion were raised in the first two quarters of 2023, the comparable funding this year was down to half of that, Bloomberg NEF said.

Global spending on clean energy technologies and infrastructure on track to hit $2 trillion in 2024 even as higher financing costs hinder new projects, according to the International Energy Agency's World Energy Investment report.

Total energy investment worldwide is expected to exceed $3 trillion in 2024 for the first time, with some $2 trillion set to go toward clean technologies and the remainder, slightly over $1 trillion, going to coal, gas and oil.

Climate and environmental markets standards body Verra has released a new discussion paper titled Plastic Credits as an Innovative Financial Instrument, which advocates using plastic credits to support extended producer responsibility (EPR) systems to reduce plastic waste in developing economies.

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