The Australian government’s landmark environmental law reforms are set to pass Parliament this week after striking a deal with the Greens, in what ministers hail as a “new era” for environmental protection and national productivity.
However, the nation’s gas producers have condemned the agreement as a blow to energy security and investment, warning it will worsen gas supply challenges.
Prime Minister Anthony Albanese said the Environment Protection Reform Bill would deliver balanced progress, modernising the 25-year-old Environment Protection and Biodiversity Conservation (EPBC) Act and responding to recommendations from Professor Graeme Samuel’s 2020 review.
“Everyone agrees that the laws as they stand are broken and need to be reformed,” Mr Albanese said.
“Getting these laws passed is vital to protect our environment and to boost productivity in our economy.
“These reforms will help us meet our national priorities of building more homes, rolling out more renewables and accessing more critical minerals.
“They are also crucial to our Future Made in Australia agenda.”
Under the amended legislation, Australia will establish its first National Environment Protection Agency (EPA), an independent regulator tasked with enforcing compliance and stronger environmental standards.
The reforms will also introduce National Environmental Standards, higher penalties for serious breaches, and new requirements for major emitters to disclose greenhouse gas information and emissions reduction plans.
The Bill also includes measures aimed at streamlining approvals for renewable energy, critical minerals, and housing projects through a new Streamlined Assessment Pathway and strengthened state-federal bilateral agreements.
But the Albanese government’s concession to the Greens to exclude new gas developments from these streamlined pathways has drawn sharp criticism from the gas sector.
“The decision by the Albanese government to strike an agreement with the Greens on environmental law reform is a squandered opportunity to address the significant costs and delays in delivering gas to Australian consumers,” said Australian Energy Producers Chief Executive Samantha McCulloch.
“Carving gas out of streamlined reforms is simply not in the national interest.
“The deal will entrench slow approvals, which will drive up energy costs, deter investment and further delay the new gas supply Australia urgently needs.”
Ms McCulloch said more than five million Australian households depend on gas, while industries rely on it as an essential manufacturing input and a stable energy source during the nation’s transition to renewables.
“By conceding to the Greens, the government has chosen more red tape and uncertainty instead of enabling new gas supply,” she said.
“This approach ignores the expert advice of the ACCC and the Australian Energy Market Operator to remove barriers to new supply, undermines investor confidence, and risks higher energy costs for households and businesses.”
She added the decision conflicted with the Prime Minister’s remarks at the G20 Summit supporting gas as part of the energy transition and with the government’s Future Gas Strategy, which emphasised the need to avoid projected supply shortfalls.
Environment and Water Minister Murray Watt defended the legislation, calling it “a landmark day for the environment” that will deliver both ecological and economic benefits.
Watt said the reforms would not only safeguard the environment and Australia’s natural assets but also boost economic productivity by streamlining project approval times and generating up to $7 billion in economic activity.
McCulloch maintained that Australia “deserves evidence-based policy made in the national interest — not short-sighted political compromises that stall critical projects and jeopardise the new gas supply essential to our future energy needs”.