ESG Snapshot: Issue 91

This week's highlights include:

• Safeguard not enough. The Safeguard by itself won't lead to deployment of all the coal industry's low-cost abatement opportunities, says a new report.
• Missed chance.The Productivity Commission's interim report on circularity misses some big opportunities, says a Monash University submission.
• Waste to algae. EPA Victoria is evaluating a project that would use energy generated from food waste to run an algae farm.
• Abandonment issues. Abandoned oil and gas wells and coal mines emitted eight million tonnes of methane last year, making them the world's fourth-largest emitter of fossil fuel methane, says the IEA (international news).
• COP30 survey. The federal government is seeking survey responses on participation in the COP30 climate talks in Brazil.
• Forest values. A new Victorian government report on forest values makes no mention of carbon stocks.
• Clean fuels. The Tasmanian government has released a draft clean fuels strategy.
• Greens 'mandate'. The Greens say they will use their position in the Senate to hold Labor to account on key issues like climate change.

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The returned Labor government will "sit down with sensible people across the spectrum" to pursue the establishment of a federal EPA, Prime Minister Anthony Albanese has told ABC 7.30.

Albanese was circumspect when asked whether the EPA would have the power to make approval decisions.

"We want to make sure that a federal EPA can support industry and jobs and provide certainty but also produce sustainable outcomes," the Prime Minister said.

"One of the things that has occurred and is a great frustration when it comes to the productivity agenda that will be very much part of our second term, building on what we've done in our first, is the delays and delays and more delays that occur," he said.

"We need to make sure that there is more sensible decision making. That's something that I'm committed to. It's something as well that conservation groups want to see. Where a project clearly doesn't stack up, there should be an easier way to make decisions."

The Greens "have been given a mandate to use our position in the Senate to hold Labor to account and make it act on issues like climate, environment, housing, and social and economic justice", according to acting Party leader Senator Nick McKim.

"We will be doing exactly that," he said. "We were not elected to get out of Labor’s way and the sooner the Prime Minister understands that the better."

"If Labor wants to deliver real change, we’re ready to work constructively," McKim said.

DCCEEW is inviting organisations planning to attend the COP30 climate talks in Brazil to complete a short survey, to assist in government planning.

"Limited support is available to fund the travel of underrepresented groups ... with a particular focus on First Nations Australians and youth," says the survey landing page.

"This survey will help us identify interest in COP30 attendance and potential barriers that exist to participation," it says.

Responses must be submitted by 18 May.

Advocacy group Climate Integrity has lodged a complaint with the ACCC over representations made by "Australians for Natural Gas".

The group is represented by the Environmental Defenders Office.

The reform directions of the Productivity Commission's interim Report on opportunities in the circular economy "miss the biggest opportunities of 'going circular'," says a blunt submission to the Commission by Monash University.

The Commission received 84 submissions on its interim report, and will submit its final report to the government in August.

There is a large opportunity for state policy in NSW and Queensland to complement the Safeguard Mechanism and unlock cost-effective, near-term fugitive emissions abatement from coal mines, says a new report from Common Capital.

Developed in consultation with government officials, mining industry representatives, and other interest groups, the report says:

• Fugitive emissions from coal mines are currently responsible for 9.7 MtCO2e in NSW (7% of annual emissions) and 11.6 MtCO2e in QLD (8% of annual emissions). Fugitive emissions could increase significantly, by 75% in NSW (to 17 MtCO2e), and by 90% in QLD (to 22 MtCO2e).
• There is approximately 5.1 MtCO2e per year of abatement available in NSW and 5.5 MtCO2e per year of abatement available in Queensland that is likely to be cost-effective (< $30/tCO2e).
• These abatement estimates are based on current technologies applied at just the nine highest emitting underground mines in NSW and six highest emitting underground mines in Queensland, which collectively account for 63% of national reported coal mine fugitive emissions but only 12% of coal production.

"In the last quarter of 2024, renewables provided 46% of the power in our main national grid on average, reaching over 70% at times," Climate Change Authority chief executive Brad Archer has noted in a speech to CEDA.

"Over four million homes and properties already have solar panels on the roof," Archer said.

"Some of the nation's leading businesses are switching to renewables to power their operations – companies like BHP and Rio Tinto, and Bunnings. This progress should give us the confidence to keep going, to keep building on our momentum," he said.

Ten renewable energy projects have been given access rights to connect to the Central-West Orana Renewable Energy Zone (REZ).

The projects have a total of 7.15GW of renewable energy and storage capacity, which will be capable of powering 2.7 million homes by 2031 in peak periods. They will avoid 10.29 million tonnes of carbon emissions per year.

The ten projects comprise three wind farms, four solar facilities (one of which as a battery component), and three standalone battery projects.

The NSW government has released a new guide that outlines the government's approach to consulting with regional, rural and remote communities, including Aboriginal communities, to make better decisions and improve the lives of people across New South Wales.

The release of the Guide follows the passage of the Regional Communities (Consultation Standards) Act 2024, by independent MP for Barwon, Roy Butler.

Greg Medcraft has been appointed as Chair of the AEMO Services Limited Board.

Medcraft has extensive experience on public and private sector boards, both in Australia and abroad. He previously served as director of the OECD Directorate for Financial and Enterprise Affairs from November 2017 to July 2021, and was a commissioner and Chair of ASIC.

EPA Victoria has received a development licence application to establish an innovative aerobic digestion facility in Gippsland, that would process food and agricultural waste and produce protein products from microalgae cultivation ponds, as well as biogas.

The facility proposed by C-Loop Power & Thermal Pty Ltd for a site near Toongabbie would process up to 15,000 tonnes of organic waste annually.

The biogas will be combusted to generate electricity and thermal energy (11,000 MWh annually), with 20% used on on-site and the rest exported to the grid.

"There are approximately 250 anaerobic digestion systems operating across Australia associated with municipal and industrial wastewater treatment, the management of intensive animal industry effluent and the treatment of industrial waste," the application notes.

However, these facilities usually only treat the waste to generate energy, rather than also cultivating algae, it says.

"From 2022 until mid-2023, the company conducted micro-algae research at Murdoch University, focusing on the cultivation of high-protein micro-algae," the application says.

"The Company has registered multiple patents from its biorefinery model and already has commercial interest in a second project near Bendigo in Victoria," it says.

The Victorian government has approved ACEnergy's $350 million Battery Energy Storage System (BESS) project in Little River, through its fast-track Development Facilitation Program. 

The Victorian Environmental Assessment Council (VEAC) has released a report on the values of state forests in eastern Victoria.

Eastern Victoria's state forests covers approximately 2.1 million hectares across the North East, Gippsland and East Gippsland Regional Forest Agreement (RFA) areas.

The region's forests provide habitat for many hundreds of threatened species, including the long-footed potoroo, greater glider, powerful owl, Orbost spiny crayfish and numerous rare plants. 

The areas of highest habitat value for conservation are found in three key locations in East Gippsland.

Terms of reference required VEAC to consider the social and economic values of the area, as well as the biodiversity, ecological, geological, geomorphological and heritage values of the area.

The report does not consider or assess the value of the carbon stored in the forests.

Consultation opportunity - clean fuels. The state government has released a draft Tasmanian Future Clean Fuels Strategy to accelerate the production and use of renewable hydrogen, green methanol and advanced biofuels.

Comments are due by 4 July. The final version of the strategy will be released later this year.

Leader of the Opposition Vincent Tarzia has suspended his previous commitment to hold a state Royal Commission into nuclear energy, if the Liberals win the next state election.

Tarzia last year appointed Stephen Patterson as Shadow Minister for Nuclear Readiness.

Horizon Power has lodged a referral with the WA EPA to construct the Broome Future Energy System, which will comprise a 90MW solar farm and battery energy storage system.

New listings are in blue.

The Australasian Centre for Corporate Responsibility has welcomed a 19.45% vote of Woodside shareholders against the re-election of board member Ann Pickard.

Pickard has chaired Woodside's Sustainability Committee since 2017, with the ACCR noting she has had oversight of the two climate plans that have been rejected by shareholders in non-binding advisory votes.

"This is the worst vote on record against a Committee Chair for Woodside and the second worst vote ever against a Woodside director," said ACCR lead analyst Alex Hillman.

Meanwhile, Woodside Chair Richard Goyder told the AGM that the company is determined for Woodside "to play a constructive role in the global response to climate change".

"Our climate strategy is well suited for current political and market realities, which indicates the energy transition is likely to unfold in a way that is not linear or uniform across the globe," he said.

"While the importance of decarbonising the world to mitigate the impacts of climate change is not debated, the how is," Goyder said.

"It is not a simple task to provide reliable, affordable and zero emissions energy to consumers and businesses within a short period of time. And it is made all the harder when opportunities to achieve real emissions reduction – from coal-to-gas switching, or carbon capture and storage – are taken off the table."

Fortescue Chairman Andrew Forrest has enthusiastically welcomed the re-election of the Albanese government.

"This result sends a clear and unequivocal message," he said. "Australians will back and support policies that recognise the economic opportunities which come from acting on the existential threat of climate change." 

"It shows that any party which seeks to govern this country must have a serious and credible plan to confront the climate crisis."

The Taskforce on Nature-related Financial Disclosures (TNFD) has released a guide for directors on Asking Better Questions on Nature.

The guide lists 12 key questions that board directors might wish to ask company executives, and describes the sort of analysis they should expect to see from their organisations.

Meanwhile, TNFD is conducting a survey of corporates, financial institutions and market service providers to assess the state of nature-related assessment and reporting practices.

Measures to tackle methane emissions are often very cost-effective, but methane emissions from fossil fuels remain at stubbornly high levels, the IEA's latest Global Methane Tracker shows.

However, efforts to bolster data collection and monitor methane leaks are making progress.

New analysis in this year's IEA Tracker also shows that abandoned oil and gas wells and coal mines together contributed around eight million tonnes to global methane emissions last year.

"Taken together, these sources would be the world's fourth-largest emitter of fossil fuel methane," it points out.

"According to the report, around 70% of annual methane emissions from the energy sector could be avoided with existing technologies," the Tracker says.

"Meanwhile, a significant share of abatement measures could pay for themselves within a year, since the gas that is captured can be resold."

Current methane pledges by companies and countries cover 80% of global oil and gas production, it notes.

"At the moment, however, only around 5% of global oil and gas output demonstrably meets a near-zero methane emissions standard."

Verra has launched a new methodology that supports the early retirement of coal-fired power plants and their replacement with new renewable energy.

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