ESG Snapshot: Issue 59

This week's highlights include:

• PFAS changes. Queensland plans to end its ban on the beneficial reuse of waste that contains extremely low levels of PFAS.
• NGER response. The federal government will explore options for facility-level emissions disclosures under the NGER scheme.
• Insurer scrutiny. APRA plans to assess insurers, to understand how climate change affects household insurance affordability.
• ACCC ticks. A new ACCC ruling allows wind companies to collaborate on sharing offshore zones, while another will lead to a flooring industry stewardship scheme.
• Super-charged. Victoria has permitted one battery system in just nine weeks under a streamlined system, and two more BESS projects last week joined the same track.
• Three bills. The SA government has introduced a climate bill, a coastal works bill, and a plastic bags bill.
• CCS. Resources Minister Madeleine King and the WA Chamber of Commerce and Industry are both making the case for carbon capture and storage.
• ESG edge. To lure investment, the Queensland government is establishing an ESG advisory panel for critical minerals.

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At the instigation of the Senate, a Joint Select Committee will conduct a new inquiry into energy, food and water security in Northern Australia. The committee will present an interim report by 28 November, and a final report next May.  

A Senate committee inquiry into the Future Made in Australia Bill conducted hearings last Wednesday and Thursday, and is due to report this coming Friday.

The ACCC has released a final determination authorising collaboration between renewable energy businesses to resolve overlapping geographic areas in their applications for feasibility licences under the Offshore Electricity Infrastructure Act 2021 and the Offshore Electricity Infrastructure Regulations 2022.

The application for authorisation was lodged by DCCEEW in March. The ACCC granted interim authorisation on 20 March 2024 for the Gippsland and Hunter declared offshore electricity generation regions.

The ACCC is proposing to grant authorisation for ResiLoop to establish and operate a voluntary, industry product stewardship scheme that would collect and recycle vinyl and linoleum flooring. A final determination is expected before the end of the year.

The scheme will be funded by a levy of no more than 15 cents per square metre, applied to various types of flooring products.

The Total Environment Centre has criticised the proposal in an email to the ACCC. However, other submissions have generally been supportive.

Climate Change Minister Chris Bowen has gazetted the NGER Legislation Amendment (Best Practice Emissions Intensities Update) Instrument 2024.

The instrument includes another tranche of international "best practice emissions intensities" that will be used to set Safeguard baselines for new facilities and facilities producing new products.

Minister Bowen last Thursday hosted China's Minister for Ecology and Environment, Huang Runqiu, for the 8^th Australia-China Ministerial Dialogue on Climate Change. Minister Huang Runqiu also met with Environment Minister, Tanya Plibersek.

Parliament's Joint Standing Committee on Treaties will on Thursday hold a hearing into a UN Agreement under the Convention on the Law of the Sea that would establish a conservation regime for marine biodiversity in international waters.

Australia is a strong supporter of the agreement, which was adopted by the UN last year. The agreement would make it possible for Australia to propose marine
protected areas in international waters that are contiguous with Australia's existing network of marine parks.

The federal government has released its response to the recommendations in the Climate Change Authority's 2023 review of the NGER scheme, and has accepted nearly all of them.

The government has agreed in principle to undertake a study of using the NGER scheme to estimate scope 3 emissions at the entity level, and will explore options to make public emissions data from facilities with annual emissions greater than 5,000 tonnes.

Currently, public NGER data does not provide any insights into scope 3 emissions or into facility-level emissions.

The government has also agreed in-principle that NGER coverage be extended to publicly-owned landfills.

However, it has only noted a recommendation by the Authority that agricultural emissions be brought into the scheme.

As part of its response to the NGER review report, the government has also appointed Chief Scientist Cathy Foley to lead an expert panel to ensure the reporting for coal mine methane is accurate and transparent.

The federal government has also released its response to the Climate Change Authority's 2023 and 2020 reviews of the Carbon Farming Initiative Act, and has agreed or agreed in principle to all the Authority's recommendations. These include recommendations that:

• if an ACCU method is updated, then projects relying on the old version of the method should generally be required to align with the new version within two years.
• non-carbon attributes of ACCUs should be visible on the ACCU register.
• ACCU methods be developed for engineered emissions removals.

Grant opportunity - Solar SunShot. ARENA is inviting applications for funding under the first round of the Solar SunShot program, with grants available under two streams.

A total of $500 million will be available under round 1A, which is focused on solar PV manufacturing innovation.

Another $50 million is available under round 1B, which will support feasibility studies and FEED.

Consultation opportunity - network connection. Federal, state and territory governments are seeking views on streamlining network connection processes for EV charging equipment, solar systems on the rooftops of commercial and industrial facilities, and neighbourhood-scale batteries. Comments are due by 22 September.

The Australian Energy Market Operator has released its latest Electricity statement of opportunities, which concludes that the NEM reliability outlook has improved, helped by the progress of 5.7GW of grid-scale generation and storage, and 365km of new transmission developments.

However, modelling indicates reliability gaps at times over the next 10 years if these projects are delayed. 

The Australian Prudential Regulatory Authority has released its FY25 corporate plan, which says lifting expectations to consider the financial impacts of climate risk will be one of its top priorities. Over the coming year, APRA's activities will include:

• increasing expectations for regulated entities to consider climate related risk in their lending, underwriting, and investing.
• increasing industry and supervisory awareness of the impact of nature risk on the resilience of entities, the financial system, and the community.

APRA will undertake a Climate Vulnerability Assessment of Australia's five largest household insurers, which between them cover about 80% of the household insurance market. Through the assessment, APRA will seek to understand the impact of climate change on household insurance affordability out to 2050.

The Australian Accounting Standards Board has released a new action alert, which describes key decisions on its climate-related financial disclosure project.

DCCEEW has released the 2024 Australian energy update, which shows energy productivity improved 1% in FY23. In calendar year 2023, renewable generation in Australia grew to a record 35% of total generation.

The federal government has updated the climate change considerations chapter of the Australian Rainfall and Runoff: A Guide to Flood Estimation (ARR), which is used to assess flood risk for the built environment.

The federal government has released the Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2024.

The update shows emissions totalled 440.2 million tonnes in the year to March 2024, down 0.6% (2.7 Mt CO₂-e) compared with the previous year.

Talent Nation is inviting responses to its latest ESG remuneration survey.

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

Statutory development and consultation opportunity - PFAS. The state government is consulting on a proposal to amend the threshold values for PFAS in regulated waste.

Currently, any waste containing PFAS must be categorised as category 1 regulated waste. The consultation paper says this can discourage the beneficial reuse of waste that contains low levels of PFAS, such as soil from construction projects, even if the associated risks could be appropriately managed.

The proposed changes would allow wastes containing PFAS below threshold levels to be treated as general waste or non-regulated waste. Comments are due by 27 September.

The state government will establish an ESG Advisory Panel to foster ESG excellence in the state's critical minerals sector, and to help attract investment.

The state government, in conjunction with the Australasian Institute of Mining and Metallurgy (AusIMM), will also:

• review domestic and international ESG trends.
• baseline ESG capability in Queensland's critical minerals industry.
• develop ESG tools and guidance materials.
• establish an ESG industry excellence award.

A project to reduce methane emissions at Stanmore Resources Ltd's South Walker Creek coal mine has become the first project to be supported through the state government's $520 million Low Emissions Investment Partnerships program.

The government will provide an undisclosed amount towards a new 20MW power station, fuelled by methane drained from the open-cut metallurgical coal mine.

If successful, the project could pave the way for faster emissions reductions across the broader coal sector. The power station will be completed by 2027, and will meet the mine's entire electricity requirements.

The state government has announced six collection sites for a pilot solar panel recycling program being run in partnership with the Smart Energy Council.

Further collection sites will be announced in coming weeks, and the project will inform decision-making on a national scheme. The state government has provided almost $5.5 million to support the pilot program.

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.
  

A parliamentary committee inquiry into beneficial and productive post-mining land use has released transcripts of recent hearings in Muswellbrook and Lake Macquarie.

The state government will this month introduce legislation to establish a statutory office of the Independent Agriculture Commissioner.

The state government has appointed an expert panel to lead consultation on a Forestry Industry Action Plan, "which will outline the path NSW will take to ensure a sustainable timber industry that aligns with the government’s key environmental priorities".

The panel will be chaired by Peter Duncan AM, assisted by Professor Mary O'Kane AC and Mick Veitch.

The state government has placed on exhibition a proposal by Ratch-Australia for its proposed 100 MW/200 MWh Beryl battery energy storage facility near Gulgong, in the Central-West Orana REZ.

Open consultations:

• Biodiversity offsets. A parliamentary committee inquiring into the government's Biodiversity Offsets Scheme Bill is accepting submissions until Friday.
• Coal mines. The EPA is surveying community members on the regulation of coal mines, with responses due by 2 October.

Minister for Planning Sonya Kilkenny has approved the first renewable energy project fully processed under a new fast-tracked approvals pathway for eligible energy projects.

ACEnergy has received a planning permit for its proposed $250 million 250MW Joel Joel battery energy storage system in the Northern Grampians, just nine weeks after submitting its approval application via the fast-track Development Facilitation Program.

Meanwhile, two other battery projects last week lodged planning permit applications under the DFP.

The federal government has provided three soft plastics recycling grants to Victorian companies totalling $15.6 million that will divert from landfill more than 43,000 tonnes of plastics annually.

Pro-Pac Group received more than $6 million to expand its existing facility for transforming recycled feedstock into soft plastic with recycled content.

Naula received more than $5 million for advanced sorting and processing equipment, and Sustainable Plastic Solutions received more than $4 million to install recycling technology.

State Parliament's Economy and Infrastructure Committee has instigated a new inquiry into wildlife road strike. Terms of reference will be available shortly.

Grant opportunity - neighbourhood batteries. The state government is inviting applications by 29 October for round two grants under its $42 million 100 Neighbourhood Batteries Programs.

The Blue Economy CRC has made an EPBC referral for an aquaculture research trial in the open waters of Bass Strait. The finfish aquaculture trial is proposed for a site about 12 kilometres off the coast of Burnie, Tasmania.

Statutory development - climate change. Minister for Climate, Environment and Water, Susan Close, has introduced the Climate Change and Greenhouse Emissions Reduction (Miscellaneous) Bill, which will overhaul the state's existing climate legislation.

The bill introduces a net zero by 2050 target, and a short-term target of at least 60% reduction in net greenhouse gas emissions by 2030 (from 2005 levels). It will also legislate a state target of 100% net renewable electricity generation by 2027.

The bill also introduces a requirement to prepare a publicly available statewide emissions reduction plan and a statewide climate change risk assessment.

Statutory development - sand movement projects. Attorney General Kyam Maher has introduced the Coast Protection (Significant Works) Amendment Bill, which will require an environmental impact assessment for major sand movement projects.

Statutory development - plastic bags. Attorney General Kyam Maher has introduced a Bill to repeal the state's Plastic Shopping Bags (Waste Avoidance) Bill of 2008, and to instead ban the use of plastic bags via the more modern Single-use and Other Plastic Products (Waste Avoidance) Act 2020.

Grant opportunity - energy upgrades. Small businesses can now apply for grants of between $2,500 and $50,000 to help reduce their energy bills, under round two of the $154 million Economic Recovery Fund. A total of $20 million will be distributed.

Grant opportunity - native vegetation. The Native Vegetation Council is inviting applications for vegetation and revegetation activities in the Northern and Yorke, SA Arid Lands and Eyre Peninsula regions. Applications close on 15 November.

The Council is also inviting applications for incentive grants from landowners who want to establish a new Heritage Agreement or expand an existing Heritage Agreement. Heritage Agreements establish conservation areas on private land.

In a recent speech to the WA Chamber of Commerce and Industry, federal Resources Minister Madeleine King said she has long been "a very strong supporter of CCS and trust in the science". 

"We need to mobilise every tool at our disposal to get to net zero," the Minister said. In that context, we need CCS. I might also add that we need to show the public that CCS can work effectively. Industry simply must get runs on the board in that respect." 

The Chamber has recently released a report titled Capturing our future: Why carbon capture is critical to Australia's energy transition.

"Western Australia's unique geology, geographical location, concentration of industry in key industrial hubs, and our skilled workforces all work in WA's favour to facilitate carbon dioxide imports from Asia, as well as decarbonising local industries," the report says.

"Significant public investment in carbon capture initiatives relates back to the launch of CO2CRC in 2003, with successive federal governments announcing funding initiatives and policy positions," the report notes.

"However, the topic became heavily politicised prior to the 2013 federal election when the Abbott Liberal Government heavily opposed any initiatives to address climate change, including carbon capture introduced under the Rudd Labor Government from 2007."

The Forest Products Commission has acquired a new 177-hectare softwood pine plantation in Dingup, east of Manjimup. Since 2023, the FPC has secured 25 properties totalling more than 8,800 hectares.

New listings are in blue.

The communique of the Pacific Island Forum's leaders summit, which includes a climate change section, is now available.

In remarks to the opening of the Forum, UN Secretary-General António Guterres called for reform of international financial systems, and a phase-out of the production and consumption of fossil fuels.

The UK government has announced it won't challenge a Supreme Court ruling that concluding planning permission for an oil project was unlawful because the scope 3 emissions were not assessed.

It will also develop new guidance for decisions on permits for oil and gas developments.

Meanwhile, Oxford University's Smith School of Enterprise and the Environment has proposed stronger climate tests for decisions on issuing oil and gas licences, including a geo-net-zero test.

This would require the applicant for a licence to procure permanent CO2 storage capacity to compensate for the all-scopes emissions that would result from the granting of the licence.

The Science-Based Targets initiative has released new criteria for setting science-based targets for companies in the buildings value chain.

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