ESG Snapshot: Issue 76

This week's highlights include:

• NT axes greenhouse gas policy. The NT has dropped its carbon policy for large emitters, describing the Safeguard Mechanism as sufficient.
• Biodiversity challenges. NSW's biodiversity credits market is still not functioning properly, says a state government tribunal.
• 'If not, why not'. Proponents of NSW public infrastructure, will need to explain themselves if they don't use recycled and low emissions materials.
• New gas market. Victoria is planning a renewable gas market, which will deliver enough renewable gas to meet 6% of industrial and generator gas needs.
• Named and shamed. The NSW EPA has a new register naming businesses, individuals and activities that it says should be dealt with cautiously.
• Nature positive. NSW has released Snowy 2.0-related offset plans designed to increase the populations of three threatened plants.
• PFAS directive. Victoria has gazetted a new directive on classifying PFAS-impacted soil.
• Waste to energy. Victoria has gazetted new waste-to-energy regulations.
• $1.9 billion. Invasive species are conservatively estimated to cost NSW almost $2 billion a year, says a new government report.

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

This second issue for 2025 is focused on developments in states and territories, following the previous issue's update on national developments. Each subsequent issue will each cover national, state and territory developments.

The Queensland Audit Office has released a report on managing regional water quality.

Open consultations:

• Queensland's environment department is inviting submissions about particular wastes that might be suitable for the preparation of new End Of Waste codes. Submissions must be lodged by 10 February. The call for submissions is made annually.

The NSW Independent Pricing and Regulatory Tribunal has released its second annual report on the state's biodiversity credits market.

"Our latest annual report has found that there continue to be key challenges affecting fundamental aspects of the market," said IPART member Jonathan Coppel.

In particular, the report found changes should be made to the way government agencies are operating in the market, as their interventions are currently overly influential on market prices.

The state Parliament recently passed legislation to amend the biodiversity offsets scheme, but the changes have yet to be implemented.

Statutory development - peak demand. The NSW government has gazetted a Peak Demand Scheme Amendment Rule, which specifies provisions for calculating and creating Peak Reduction Certificates.

It has also issued a Peak Demand Scheme exemption order for various energy intensive facilities.

Consultation opportunity - embodied carbon. The NSW EPA has released a draft Protection of the Environment Policy for Sustainable Construction. Comments are due by 2 April.

The draft PEP - developed in consultation with Infrastructure NSW - aims to reduce upfront carbon emissions and promote a circular economy in major public infrastructure projects.

Under the proposed policy, government agencies would need to report on how they are decreasing emissions and prioritising recycled construction materials, applying an 'if not, why not' approach to justify decisions.

If implemented, the final policy would apply to significant public projects with cost thresholds of:

• More than $50 million for building sector projects.
• More than $100 million for all other infrastructure types.

The NSW EPA has launched a new name-and-shame public register, which will contains public warnings about individuals, businesses, and activities that the EPA considers require the exercise of "significant caution" in any dealings with them.

The register currently has two companies listed on it.

NSW taxpayers footed a bill of $29 million to destroy native forests last year, according to a new analysis by the Australian Climate and Biodiversity Foundation.

The analysis is based on the 2024 Forestry Corporation annual report, released last month, which reports a $29 million loss to its Hardwood Forests Division in FY24. 

"These results confirm what we've long known - native forest logging is an economic and environmental failure that survives only by reaching deep into the pocket of taxpayers," said ACBF Chair, Dr Ken Henry.

NSW's climate, environment and water department has released a report on managing coastal natural hazards, such as beach erosion, shoreline recession, inundation, and cliff or slope instability.

NSW's climate, environment and water department has released an offset action plan for the rare "leafy anchor plant" found in the Kosciuszko National Park.

The plan aims to deliver a biodiversity gain equivalent to 120% of the biodiversity loss in the number of leafy anchor plants that will result from the Snowy 2.0 project.

About 45 leafy anchor plants will be impacted by the Snowy 2.0 main works. Under the plan, an additional 54 leafy anchor plants must be established in the Kosciuszko National Park, representing 120% of the impact.

The department has released similar Kosciuszko offset action plans for the Kiandra leek orchid and the mauve burr-daisy.

The offset actions will be financed through the expenditure of Snowy 2.0 offset funds.

The NSW EPA has commenced prosecutions against three companies and one individual over asbestos found in mulch.  A total of 10o charges have been laid against two entities trading as Greenlife Resource Recovery Facility - Freescale Trading Pty Ltd and Runkorp Pty Ltd.

Another charge has been laid against VE Resource Recovery Pty Ltd, and another against its the sole director of VE Resource Recovery, Arnold Vitocco.

The prosecutions follow the largest investigation in the EPA's history, which was launched after bonded asbestos was discovered in mulch at Rozelle Parklands. More than 300 sites were inspected, with 79 sites identified as having used contaminated mulch. All sites have now been cleaned up by the owners.

The NSW government has this month released a preliminary report on invasive species, prepared by the Natural Resources Commission.

The Commission estimates the financial cost of invasive species in NSW is at least $1.9 billion per year, having increased from $26 million in the 1970s.

It recommends the development of a state-wide invasive species planning framework, and the establishment of a five-year invasive species investment program.

A new report from Geoscience Australia, in collaboration with the Geological Survey of NSW, has found elevated levels of natural hydrogen and helium in locations throughout New South Wales.

Consultation opportunity - renewable gas. The Victorian government has released a renewable gas directions paper, which proposes a market-based certificate scheme called the Industrial Renewable Gas Guarantee.

The scheme is intended to launch in 2027, with the goal of reaching 4.5PJ of renewable gas per year by 2035. That is equivalent to approximately 6% of projected gas demand in the state's industrial and gas-powered generation sectors.

Comments are due by 7 February.

EPA Victoria has gazetted a new designation for classifying PFAS-impacted soils.

The effect of the designation is to classify soil that is PFAS-impacted as not priority waste if it contains less than the upper limit for PFAS contaminant concentrations in fill material, as specified in the EPA's guidance on Waste Disposal Categories - Characteristics and Thresholds.

New Opposition leader Brad Battin has pledged to abolish the State Electricity Commission, although shadow energy minister David Davis acknowledged the difficulties of doing so, given the SEC's mandate and objectives were enshrined in the state's Constitution in 2023.

The Victorian Opposition has previously undertaken to reinstate VCAT appeal rates for renewables projects.

Environment Minister Steve Dimopoulos has gazetted waste-to-energy amendment regulations that deal with matters including licensing and waste processing caps.

The regulations also nominate the South East Metropolitan Advanced Waste Processing project as critical infrastructure.

Consultation opportunity - connecting energy projects to the grid. VicGrid is consulting on network access arrangements to manage how renewable energy projects connect to the state's electricity transmission network. 

The new access regime will impose caps on new generation capacity in the state's renewable energy zones (REZs), to prevent excessive network congestion.

The regime will also introduce a Grid Impact Assessment process for projects seeking to connect to the grid outside REZs. Comments are due by 14 February.

The Victorian government is consulting on plans to reward the introduction of new energy management information systems through the Victorian Energy Upgrades program. Comments are due by 17 February.

Victoria's Essential Services Commission has released its draft decision on the minimum amount electricity retailers must pay solar customers for the electricity they export into the grid.

The proposed minimum flat feed-in tariff is 0.04 cents per kWh starting 1 July 2025, down from this year's minimum of 3.3 cents per kWh. Comments are due by 31 January.

Grant opportunity - resource recovery infrastructure. Green Industries SA is inviting applications by 31 January for circular infrastructure grants. Grants of between $25,000 and $500,000 are on offer.

Julia Grant has been appointed to the South Australian EPA board - a move that the EPA says will strengthen its climate change capabilities.

Grant played an instrumental role in the creation of Australia's first climate change legislation, South Australia's Climate Change Act 2006.

Grant joins Susan Jeanes, who was appointed to the board a year ago, bringing and who also has significant climate change expertise.

The Clean Energy Future Fund has awarded grants totalling $16 million to seven projects.

• BOC Ltd will receive $3 million to install a 1.25 MW alkaline electrolyser to produce up to 500 kg per day of renewable hydrogen at its Kwinana site.
• Tesla Geraldton Pty Ltd (not related to EV manufacturer Tesla Inc.) will receive $3.5 million to convert a 10MW diesel generator at Geraldton Airport to battery storage, to provide grid services and EV charging.
• Banjima Native Title Aboriginal Corporation will receive $2.5 million to install 103MW of solar power and 51.5MWh of battery storage on Banjima country in the Central Pilbara.
• Edenlife Communities Pty Ltd will receive $432,750 to build a retirement village of fully electric houses, by installing 395kW of solar and 300kW/663kWh of battery storage .
• Electric Power Conversions Australia will receive $3 million to convert a 150-tonne mining haul truck from diesel to battery electric.
• Pacific Energy will receive $574,400 to help install a 250kW/1MWh vanadium redox flow battery.
• Pilbara Solar - $3 million will go to the Junja project, which will install 10MW of solar near Port Hedland on Jinparinya Aboriginal Community land.

The latest WA Gas Statement of Opportunities reveals a strengthened near-term outlook compared to last year's report, with domestic gas supply expected to exceed consumption through to 2027.

The WA government is offering local governments subsidies to transport e-waste, following the 1 July 2024 start of its ban on landfilling e-waste.

The WA government has released the second Gnangara groundwater action plan progress report.

Groundwater levels have generally been in decline across large parts of
the Gnangara plan area for the past 40 years because of decreasing rainfall, the continued use of groundwater, and pine plantations (which limit recharge).

Declining groundwater levels are also compromising water quality, due to salt water intrusion.

Open consultations:

• Waste reporting. The Department of Water and Environmental Regulation is consulting on proposed changes to reporting requirements applying to liable waste and recycling operators. Comments are due by 31 January.

The NT government says its has ended duplication in gas emissions policies in the Territory, by abolishing the greenhouse gas policy that previously applied to large emitters, and relying solely on the federal Safeguard Mechanism.

The abolished plan required large emitters to prepare a greenhouse gas abatement plan.

"The Territory established the large emitters and gas emissions policies when there were no other policies to regulate greenhouse gas emissions," said NT Minister for Lands, Planning and Environment and Water Resources, Joshua Burgoyne.

"The federal government then introduced a nationally consistent approach to reducing emissions, so now we have tidied up and strengthened our processes."

Burgoyne has also abolished the requirement for all environment management plans for petroleum activities to be referred to the NT EPA.

"This does not remove the NT EPA's ability to call in any project application for formal assessment, nor does it remove my right to request the NT EPA’s advice for specific proposals," Burgoyne said.

Consultation opportunity - biosolids. The NT EPA has released proposed guidelines for biosolids management. Comments are due by 28 February.

New listings are in blue.

Support for a levy on maritime emissions has grown, with Panama and Liberia now among those supporting a levy, according to Climate Home News.

Pacific nations supporting the proposal include Fiji, the Marshall Islands, Palau, the Solomon Islands, Vanuatu, Tonga, and Tuvalu.

Further discussions on a levy will take place at an International Maritime Organisation meeting in February, the news service reports.

The World Economic Forum has released the findings of its latest annual survey of global risks.

Respondents nominated extreme weather events as the risk most likely to have a severe impact over a 10-year period, followed by biodiversity loss and ecosystem collapse, critical changes to earth systems, and natural resource shortages.

The next four risks nominated as likely to have a severe impact were misinformation and disinformation, adverse outcomes from AI technologies, inequality, and social polarisation.

The Net Zero Asset Managers initiative, established to help investors mitigate the material financial risks of climate change and realise the benefits of net zero, has launched a review of its purpose and activities, following the departure of investors including Blackrock. 

"Recent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions have led to NZAM launching a review of the initiative to ensure NZAM remains fit for purpose in the new global context," according to a statement.

"As the initiative undergoes this review, it is suspending activities to track signatory implementation and reporting. NZAM will also remove the commitment statement and list of NZAM signatories from its website, as well as their targets and related case studies, pending the outcome of the review."

There are "critical opportunities this year to achieve breakthroughs on the SDGs", UN Secretary-General Antonio Guterres, has told the UN General Assembly. 

These include the Conference on Financing for Development, the World Summit for Social Development, the G20 Summit under the Presidency of South Africa, COP30 in Brazil, the UN Ocean Conference, and the Beijing Plus-30, Guterres said.

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