ESG Snapshot: Issue 97

This week's highlights include:

• EPA steps up. NSW's EPA will soon release draft time-bound emissions reduction expectations for the coal sector, while the state government is drafting adaptation regulations.
• Another attempt. After its first attempt was deemed unacceptable, the Port of Hastings has submitted a new EPBC referral for an offshore wind facility.
• Wasted. A new Green Building Council study says 22% of the materials used to construct a typical apartment never make it into the final build.
• Gas bans. Victorian restrictions on gas use in homes will unlock 44PJ of gas annually by 2035 - enough to meet 85% of forecast industrial demand.
• Front-loaded. Large clean energy projects in Queensland have a major new hurdle to clear before they can undergo environmental assessment.
• Transmission recommendations. The interim report of a NSW panel makes recommendations to streamline transmission planning.
• Big benefits. Climate resilience investments made by councils have significant net benefits, says an Australian Local Government Association study.
• Biodiversity audit. WA has 65 threatened ecological communities - and none of them have an approved recovery plan, says the state's Auditor-General.
• Habitat loss. The ability of remaining NSW habitats to support native plants and animals has dropped to 29% of their pre-industrialisation capacity, says the state's latest State of the Environment report.

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

Consultation opportunity - Guarantee of Origin scheme. DCCEEW has opened a new round of consultation on aspects of the Guarantee of Origin (GO) scheme, ahead of the scheme's launch later this year.

The GO Scheme will certify low-emission products, starting with green hydrogen, and renewable electricity.

DCCEEW is seeking views on the proposed methodology determination for calculating emissions for hydrogen produced from electrolysis. It is also seeking views on cost recovery arrangements.

Comments are due by 18 July. Consultation on the first set of GO Scheme rules was undertaken earlier this year.

Consultation opportunity - offshore carbon capture and storage. DCCEEW is consulting on three offshore CCS guidance documents:

• An offshore CCS national action list under the Environment Protection (Sea Dumping) Act 1981, which outlines upper limits for substances that might be present in CO₂ streams planned for sequestration at sea.
• National assessment guidelines for offshore CCS, setting out technical and procedural details for organisations intending to store CO2 offshore.
• An updated application form for a permit for offshore CCS.

Comments are due by 12 September. The documents relate to the regulation of the offshore sequestration of domestically sourced CO2. Work is ongoing on the regulation of CO2 imported for sequestration.

The Productivity Commission has released submissions received in response to its questionnaire on speeding up approvals for new energy infrastructure, reducing the cost of meeting carbon targets, and encouraging adaptation by addressing barriers to private investment.

The questions were asked as part of the Commission's inquiry into investing in cheaper, cleaner energy and the net zero transformation.

The next phase of consultation will open after the Commission's interim report is released in July or August.

The federal Opposition will establish a dedicated Coalition working group on ‘Energy and Emissions Reduction’ policy, as part of its policy development process, Opposition leader Sussan Ley has told the National Press Club.

The group will report directly to Ley and David Littleproud. 

It will be led by the shadow energy and emissions reduction minister Dan Tehan, and will also involve Ted O’Brien (shadow Treasurer), Susan McDonald (resources), Alex Hawke (industry), Angie Bell (environment), and shadow assistant ministers Dean Smith (foreign affairs and trade) and Andrew Willcox (manufacturing and sovereign capabilities).

Ley said that, over the course of the current parliamentary term, the Opposition will develop a plan underpinned by two goals:

• Having a stable energy grid which provides affordable and reliable power for Australian households and businesses, and
• Reducing emissions so that we are playing our part in the global effort.

"Our approach must be practical and principled as we address both these goals," Ley said.

Australia will waste up to $64 billion in construction materials over the next five years unless urgent action is taken to improve building design and construction, according to a new report from the Green Building Council of Australia.

The report, titled Australia's waste[d] Opportunity, sets Australia's first national benchmarks for construction and fitout waste. It also includes an action plan to help industry cut costs, reduce emissions, and recover more value from materials.

Although 83% of projects analysed for the report claimed to have landfill diversion rates more than 90%, the report found that actual recovery rates for materials like plastic were as low as 14%.

It also concluded that 22% of materials used to construct a typical apartment never make it into the final building – costing owners an estimated $52,000 per apartment.

The report was written by Coreo in partnership with the GBCA, assisted by funding from the Clean Energy Finance Corporation and the Bradfield Development Authority.

CSIRO has partnered with the Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC), to launch the Green Metals Innovation Network .

The network will bring together researchers, government agencies and industry to accelerate the development of a domestic green metals industry for Australia's iron, steel, alumina and aluminium sectors.

A new report released by the Australian Local Government Association estimates that councils are expected to spend more than $2 billion over the next five years to future-proof their communities from the changing climate.

However, these climate-resilient investments by councils are estimated to provide up to $4.7 billion in avoided costs and benefits to communities by 2030.

DCCEEW has released a recording of a webinar on its Water markets decisions policy proposal paper. 

The Port of Hastings Corporation has submitted a referral for a "substantially modified" project to develop a facility at the Port of Hastings capable of handling imported offshore wind components.

The new referral follows the federal government's rejection of its 2023 referral on the basis that it was "clearly unacceptable". The project would involve dredging and reclamation works in Westernport Bay.

So far, 12 offshore wind proponents have received feasibility licenses to investigate a development off the Gippsland coast.

Court case - fossil gas ads. The ACCC has launched Federal Court action against gas distributor Australian Gas Networks Ltd alleging it made false and misleading representations in its ‘Love Gas’ TV and digital advertising campaign.

The ACCC alleges Australian Gas Networks misled millions of consumers when it represented, in ads that ran during 2022 and 2023, that the gas it distributes to households on its network will be renewable within a generation.

The ACCC says Australian Gas Networks made the representations even though it knew the future of renewable gas was uncertain.

The Australian Energy Market Commission has released the latest National Electricity Market Reliability & Security Report, prepared by its Reliability Panel.

Statutory development - renewable energy project assessments. The Queensland Parliament has passed the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Bill 2025, which overhauls assessment procedures for large renewable energy projects.

The Bill passed with government amendments.

The Bill requires proponents of large-scale renewables projects to finalise community benefit agreements with relevant councils before they can lodge an application for assessment - a requirement not applied to other types of major developments.

The government will not provide guidance on the contents of the community benefit agreements.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie described the legislation as "nation-leading".

Labor unsuccessfully moved that community benefit agreements for renewable projects be submitted after lodgement and resolved during the assessment process.

"This simple but powerful change removes a front-loaded barrier that would otherwise prevent clean energy projects from even entering the planning system," deputy leader of the Opposition, Cameron Dick, told Parliament.

The Clean Energy Council said the new laws will add complexity and delay approvals for large-scale renewable projects, "and put much-needed investment in Queensland at risk".

Queensland's FY26 Budget allocates $180 million to a new Sovereign Industry Development Fund that will focus on the defence, biomedical, and biofuels industries.

Twelve coastal councils will share more than $5 million for coastal hazard resilience projects under the QCoast2100 program, which is funded by the federal and state governments.

Open consultations:

• The Queensland government has launched a statutory review of the environmentally relevant activity (ERA) standards that form part of the Great Barrier Reef protection regulations for agriculture. Comments are due by 8 August.

The NSW EPA has released the latest NSW State of the Environment report. The report shows that:

• Vegetation cover has declined over the past three years and the ability of remaining NSW habitats to support native plants, animals and ecosystems has dropped to 29% of their original capacity since pre-industrialisation.
• The number of threatened species listings has increased by 36 since December 2020. In 2024, more than 600 plant species and 300 animal species are at risk of extinction.
• The NSW sea level rose by 12cm between 1991 and 2021, and might rise by up to one metre by the end of the 21st century.
• Average temperatures across the state have already risen 1.4°C since 1910 and sea surface temperatures in the Sydney area have increased by about 0.14°C to 0.2°C per decade since the 1950s.

NSW emissions projections in the State of the Environment report show a strong improvement, according to the NSW government, with the report estimating the state is currently on track to reduce emissions to 46% below 2005 levels by 2030 and 62% below by 2035.

The legislated climate targets for NSW are a 50% reduction by 2030, a 70% reduction by 2035, and net zero by 2050.

Environment Minister Penny Sharpe said the government will develop a new Net Zero Plan to ensure NSW can meet the 2030 and 2035 targets, which will include a strong focus on transport and the built environment.

"The plan will take a sector-by-sector approach to decarbonisation and for the first time bring together all the relevant portfolio Ministers to provide guidance and input," the Minister said.

Sharpe tabled the government's formal response to the recommendations made by a parliamentary inquiry into the Net Zero Commission's annual report.

The response notes that the EPA will release sector-specific guidance on emissions reduction and climate risk reduction, and will consult on its first mitigation guide, on the coal sector, in mid-2025.

The guide will set out time-bound expectations for specific mitigation actions that coal mines should implement.

"The EPA will soon implement climate change requirements for activities that are regulated through Environment Protection Licences," the response adds. "The EPA will also begin to consider regulatory levers for broader parts of the economy."

The response adds that the NSW government will establish a regional monitoring network for greenhouse gases, starting in the Hunter region.

In addition, the NSW government will develop adaptation regulations, covering risk assessment, adaptation planning, and monitoring.

The government is also reviewing the Strategic Statement on Coal Exploration and Mining in NSW.

NSW's FY26 Budget commits a further $2.1 billion over four years to the Transmission Acceleration Facility, which was established to fast-track the development of five Renewable Energy Zones.

The TAF is a revolving fund that speeds up the delivery of new transmission projects by funding early work in the zones, along with funding community benefit schemes.

The NSW Auditor-General has released an audit report on Regulating mine rehabilitation.

The audit concluded the Department of Primary Industries and Regional Development is not effectively monitoring and reporting on compliance with mining rehabilitation requirements under the Mining Act.

"However, regulatory reforms introduced in July 2021 provide the Regulator with a more robust regulatory framework for rehabilitation," it says. "These include requirements for mining companies to carry out rehabilitation as soon as reasonably practicable and to report annually on rehabilitation progress."

"These changes, if implemented effectively, should provide the Regulator with a consolidated view of rehabilitation progress across large mines."

An independent review of transmission planning in NSW has released its interim report, which makes a range of recommendations designed to clarify and streamline transmission planning, clarify roles, and better coordinate transmission planning.

The panel is accepting submissions on its draft report until 25 July, and will submit its final report to the government in September.

The NSW Legislative Council has passed a motion condemning the NSW Branch of the National Party for abandoning its commitment to net zero by 2050.

Open consultations:

• The NSW government is consulting on a new draft heritage strategy. Comments are due by 13 July.
• The NSW Net Zero Commission has issued a consultation paper on the transition to net zero, and the work of the Commission. Comments are due by 11 July.

The ACT government says its FY26 Budget will support the development of the next ACT Climate Change Strategy, and will invest $15 million over four years in climate and energy programs.

Funding will support 700 free in-home energy assessments through the Home Energy Efficiency Program, an expansion of the Sustainable Building Program for small businesses, and continued work under the Energy Efficiency Improvement Scheme.

The Budget will also provide for the appointment of a Government Landscape Architect, and the development of a Canberra-wide Landscape Plan.

The Victorian government has released a Gas Security Statement, which outlines steps it will take to avoid gas shortfalls.

By 2029, the reforms will unlock just under 12PJ of gas every year, more than the annual production of Beach Energy's Enterprise field, the state government said.

By 2035, the government expects they will unlock 44PJ annually - enough to meet 85% of Victoria’s forecast industrial demand.

Measures in the statement include:

• Requiring that when a gas hot water system reaches the end of its life, it must be replaced with an efficient electric alternative such as a heat pump (with effect from 1 March 2027).
• Requiring that all new homes and most new commercial buildings are built all-electric (with effect from 1 January, 2027).

Meanwhile, the state government is also introducing new Minimum Energy Efficiency Standards for rental properties and public housing, which will apply from 1 March 2027:

• Hot water systems in rental homes must be replaced with efficient heat pumps at end-of-life, and end-of-life gas heaters must be replaced with reverse-cycle air conditioners.
• A minimum 4-star Water Efficiency Labelling and Standards (WELS) rated shower head must be installed at the start of a new lease.
• A Minimum R5.0 rating ceiling insulation must be installed at the start of a new lease where there is no ceiling insulation already in place.
• Draught sealing, including weather seals on all external doors, windows and wall vents must be installed at the start of a new lease.
• Main living areas must have an efficient electric cooling system at the start of a new lease, supplementing existing requirements that they have heating.

All the upgrades are eligible for discounts under the Victorian Energy Upgrades program. Exemptions also apply if installation costs are too high or if there is not enough space.

The state government is also investing $9.5 million to an Industry Diversification Program, which will support existing businesses to expand their manufacture of electric appliances and reskill their workforces.

Meanwhile, SEC Victoria has launched a new Electric Home Planner service to help householders switch their homes to electric.

The state government is also offering grants and subsidies to help go all-electric.

Grant opportunity - energy innovation. The Victorian government has announced that applications for grants under round three of the Energy Innovation Fund will open in September.

The grant round will focus on the food processing and manufacturing sector.

Ausnet says it will offer neighbours of properties along the 190 kilometre route of the proposed Western Renewables Link (WRL) payments of $20,000 or $40,000 under a Near Neighbour Benefit Program targeting landholders within one kilometre of the proposed easement.

Renew Economy, which first reported the move, says the near neighbour scheme would be an Australian first.

Ausnet says the Environmental Effects Statement for the WRL will go on public exhibition from 30 June.

Open consultations:

• Comments on a draft Tasmanian Future Clean Fuels Strategy are due by 4 July.

The sale process for the Whyalla Steelworks and associated mining operations has formally opened, led by administrator KordaMentha and sale advisors 333 Capital.

The federal and South Australian governments have jointly committed $1.9 billion to support the transformation of the operations into a commercially viable, low-emissions, 'pit to port' iron and steel facility

Consultation opportunity - Firm Energy Reliability Mechanism. The SA government has launched a stage 2 consultation on its proposed Firm Energy Reliability Mechanism (FERM).

Green Industries SA has awarded Distillers South Australia $95,000 for the delivery of A Pathway to Sustainability for the SA Distilling Sector, which will to support the sector’s transition to a circular economy.

Open consultations:

• Green Industries SA is consulting on a draft statewide circular economy and waste strategy for 2025 to 2030. Comments are due by 23 July.

WA's Office of the Auditor-General has released a performance audit of efforts by the Department of Biodiversity, Conservation and Attractions to conserve threatened ecological communities (TECs).

The Department has listed 65 TECs throughout Western Australia. However, the Department is not yet giving full effect to those protections for all TECs, leaving some more vulnerable than others, the audit says.

"The Department also identified 390 other Priority Ecological Communities that are threatened or rare and likely threatened, however there is currently no plan to work through the backlog."

The Department has focused its activities on the 28% of TECs that occur on the land it manages, and has not made significant progress with monitoring
the condition of the 72% of TECs located on land that it doesn't manage, it adds.

The Department cannot effectively track or demonstrate what impact its conservation activities are having on the condition of TECs, and it is not yet using
all legislative options available to it, "leaving some TECs with legal but not practical protection".

"At current rates it would take over 100 years to list and protect the 390 ecological communities on the Department’s priority list if they were all deemed suitable
for listing," it says.

None of the 645 listed TECs have an approved recovery plan, although 62% have an interim plan.

The WA government has released the 2023-24 Waste and recycling in Western Australia report.

Overall waste generation has increased 18% since FY15, while waste generation per capita has increased 5% since 2014-15.

In contrast, municipal waste generation per capita has declined from 625kg in FY15 to 481kg in FY24.

"This is likely driven by the move towards digital media consumption and lighter weight products and packaging," the report says.

A total of 7.4 million tonnes of waste was generated in FY24, with 4.8 million tonnes recycled (65%) and 2.5 million tonnes disposed of to landfill. This is a six per cent increase in waste generation from FY23.

A total of 51% of all waste generated came from the construction and demolition stream, 29% from the commercial and industrial stream, and 19% from the municipal solid waste stream.

About 49,000  tonnes of waste was recovered as energy in FY24. Almost all (96 %) of this was sourced from the commercial and industrial sector.

The Australian Energy Market Operator has released its 2025 Wholesale Electricity Market Electricity Statement of Opportunities, which provides a reliability outlook out to FY35 for the main WA grid, known as the SWIS.

Since 2023 almost 500 MW of battery storage has begun operating in the SWIS, with a further 728 MW of committed storage expected to be online in 2025-26, AEMO notes.

In the near-term, there is a pipeline of more than 1,600MW of committed and probable generation and storage projects (including the 728 MW of committed battery storage), which could be online by 2027-28.

A further 2,300 MW of proposed capacity was submitted under the expressions of interest stage of this year’s Reserve Capacity Cycle, AEMO notes. This will need to be underpinned by the planned development of Western Power's transmission network, which is currently underway.

Statutory development - container deposits. The NT government has announced it will expand the Territory's container deposit scheme to include all drink containers of up to three litres, including wine and spirits bottles.

The changes will be introduced through amendments to theEnvironment Protection (Beverage Containers and Plastic Bags) Act 2011 and Regulations, with legislation to be introduced into the Assembly later this year.

The NT government has abandoned the previous target of a 43% reduction in emissions by 2030, despite stating before the election that they were committed to it.

The backflip was pointed out by the NT Greens, based on comments made by NT environment Minister Josh Burgoyne in Budget Estimates.

Earlier this year, the NT government announced it was scrapping the former Labor government's target of 50% renewable energy generation by 2030.

New listings are in blue.

Countries with clear industrial policy, long-term certainty and affordable clean energy are attracting a transition dividend, concludes a new report released by the World Business Council for Sustainable Development.

The Business Breakthrough Barometer 2025 report, based on insights from more than 300 business leaders in over 50 countries, finds 56% of surveyed leaders say the primary motivation for increased investment in net-zero is to secure long-term industrial competitiveness.

A total of 96% of respondents said governments should "stay the course" on net zero commitments.

"Companies are focusing on technologies and markets that offer both sustainability and commercial returns, and remain committed – with 91% saying they have maintained or increased investments in the net-zero transition over the past year," the WBCSD says.

"The report challenges the perception that business is backing away from net-zero," it says.

"Instead, it finds investments are increasingly shaped by the reliability of national policy environments, and governments are failing to capture the full dividend of business-led decarbonisation investments by backsliding on commitments and policies."

The Grantham Research Centre on Climate Change and the Environment has released a new report on global trends in climate litigation.

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