The country’s top mining association warned that a climate trigger looms as an “ever-present threat”, undermining industry confidence as the government overhauls environmental laws.
At the same time, the acting Auditor General has indicated that her office may consider establishing a new environmental protection agency once it is created by law.
The government has split its planned overhaul of the Environment Protection and Biodiversity Conservation Act to start with the establishment of a new independent regulator later this year and then move on to changes to the rules governing environmental impact assessments and permits.
The bill for this first phase of the Nature Positive plan was passed by the House of Commons last week and will be presented to the Senate in August following a six-week committee inquiry.
The business community fears that, given the coalition’s opposition to the laws, the government will be forced to compromise with the Greens to push through the establishment of a new regulator.
The smaller party has long indicated that it wants a “climate trigger” in the legislation. This would mean that the government would have to take into account the emissions potential of projects as part of the environmental impact assessment.
Minerals Council of Australia chair Tania Constable said the Labor Party had promised its legislative changes would deliver better environmental and economic outcomes, but so far it only appears to result in “packaging even more environmental regulations” on the industry and a more complicated regulatory system.
The Council has significant reservations about the law, including with regard to the independence of the EPO Executive Director.
“Allowing an unelected bureaucrat to make decisions on billion-dollar projects that employ thousands of Australians is undemocratic and requires thorough scrutiny,” Ms Constable said.
“Now more than ever, Australia’s leading industries need certainty to attract investment and create jobs. The ever-present threat of a climate trigger is eroding that certainty.
“If the government is truly interested in Australia’s future, it must reject any proposal to include a climate trigger in the law. Such an economically damaging measure would seriously jeopardise investment, jobs and economic stability.”
Last month, the Business Council of Australia warned that dozens of projects currently underway would not have been approved if a climate trigger had already been in place.
The Government is convinced that, following the revision of the protection mechanism last year, it already has the right tool to curb pollution at major industrial sites.
“The bill that recently passed the House of Representatives would establish a national, independent environmental protection agency with sweeping new powers and penalties. It does not contain a climate trigger,” a spokesperson for Environment Minister Tanya Plibersek told The Nightly.
Australia’s National Audit Office has also indicated that it may examine the effectiveness of the arrangements establishing Environment Protection Australia as part of its work in the next financial year.
It was noted that the government had allocated $121 million over four years to establish the new regulator.
In an overview of plans for the current year, the ANAO said previous audits of the Ministry of the Environment had identified deficiencies in the department’s regulation, including governance arrangements and the introduction of risk-based approaches.
“There is a risk that portfolio companies have not improved their performance in this area and that the desired regulatory outcomes will not be achieved,” it said.