Environment and Sustainable Development 5 Minute Fix 37: climate change obligations, renewables, greenwashing

Climate change

International: Milestone UN resolution seeks International Court of Justice opinion on States' obligations on climate change

On 29 March 2023, the General Assembly adopted by consensus a resolution requesting that the International Court of Justice hand down an advisory opinion clarifying the obligations of States regarding climate change. The opinion, which will not be legally binding but likely to be cited in court cases, is to focus on the:

• legal obligations of States under international law to protect the environment and climate system from anthropogenic emissions of greenhouse gases; and
• legal consequences for States that, “by their acts and omissions”, have caused significant harm to the climate system with respect to States, and in particular, small island developing States, and people of present and future generations.

It is understood that the opinion is likely to be issued within the next 12 months.

Commonwealth: Proposed changes to NGER scheme: have your say

The Department of Climate Change, Energy, the Environment and Water is seeking submissions on proposed changes to the National Greenhouse and Energy Reporting Scheme (NGER Scheme) which are proposed to be implemented through the National Greenhouse and Energy Reporting (Measurement) Amendment (2023 Update) Determination 2023.

The proposed changes to the NGER Scheme are discussed in the Consultation Paper and include:

• the introduction of an optional, supplementary ‘market-based method’ for determining emissions associated with the consumption of electricity (‘scope 2" emissions);
• revising Method 1 for estimating emissions of methane from Queensland open cut mines to reflect improvements in data availability and analysis (which saw Queensland's methane emission factor increase from 0.23 to 0.31 CO2 per tonne of run of mine coal production);
• an update to Method 1 for estimating methane released from landfills (other than from flaring of methane); and
• creation of two new fuel types: renewable paraffinic diesel and renewable paraffinic kerosene.

The amendments are proposed to commence on 1 July 2023 and would apply to NGER reports submitted by 31 October 2024 for the 2023–24 NGER reporting year.

Submissions on the proposed changes to the NGER Scheme can be made until 28 April 2023 in the manner prescribed here.

QLD: Inquiry into Bill proposing 75% emissions reduction by 2030, net zero emissions by 2035

On 15 March 2023, the Private Member’s Queensland Climate Transition Bill 2023 was introduced into the Queensland Parliament.

The objective of the Bill is to support Queensland in meeting its obligations under the Paris Agreement (helping to keep a global temperature rise of <2°C above pre-industrial levels this century) by reducing scope 1, 2 and 3 greenhouse gas emissions. The Bill also proposes to establish a new independent statutory authority, the Queensland Climate Transition Authority (QCTA), to develop and implement a strategic climate transition plan.

Queensland's state-wide emissions reduction targets are presently a reduction of 30% by 2030 and net zero by 2050. The Bill proposes dramatic new state-wide emissions reduction targets, including a 75% reduction in emissions on 2005 levels by 2030 and net zero emissions by 2035 to be achieved by:

• immediately prohibiting the making of an application for the approval of any authority that permits coal, gas or oil mining and activities; and
• establishing a fossil fuel exports reduction target to phase out exports of coal, oil and gas extracted or produced from Queensland by 31 December 2030.

It is proposed that the QCTA would be required to develop a Queensland Climate Transition Strategic Plan to outline how to achieve the reductions targets, while ensuring employment stability and income security for affected workers and communities involved in or affected by coal, oil and gas extraction for export. QCTA would be expected to finalise the Plan or before 31 December 2024.

If passed, the QCTA would also have significant powers over fossil fuel authorities including the power to amend a fossil fuel authority in any way, including by imposing conditions on the authority or to cancel the authority.

The Bill has been referred to the State Development and Regional Industries Committee for consideration. Submissions on the Bill can be made until 5:00pm on Friday 5 May 2023. The Committee is due to table its report on 15 September 2023.

WA: Revised GHG emissions guideline released

On 5 April 2023, the Western Australian Environmental Protection Authority (WA EPA) released its revised Environmental Factor Guideline – Greenhouse Gas Emissions, which was first published in April 2020. The revision has followed a 12-month review which commenced in July 2021 and included an 8-week consultation period.

The purpose of the Guideline is to outline how and when the greenhouse gas (GHG) emissions factor is considered by the WA EPA in the environmental impact assessment process for proposals referred to it under Part IV of the Environmental Protection Act 1986 (WA).

Some of the key changes in the revised 2023 version of the Guideline are:

• Nitrogen trifluoride (NF₃) has been added as a new GHG emission category.
• The WA EPA will now take into account other existing laws and statutory decision-making processes to determine whether a proposal meet the WA EPA's objectives. This aims to avoid unnecessary duplication of regulation for proponents, such as under the Safeguard Mechanism.
• The Guideline now provides more detailed guidance to proponents on what information the WA EPA will require to assess the GHG emissions of a proposal and their effects on the environment. This includes the addition of further mechanisms to strengthen the transparency and clarity of information and data provided by proponents on their proposals (ie. regarding emission estimates and overall management of GHG emissions produced by proposal).
• Proponents are still required to develop a Greenhouse Gas Environmental Management Plan (GHG EMP). However, this GHG EMP must specify how proponents will meet the WA EPA's objectives, including achieving "deep, substantial and sustained emissions reductions" this decade and "net zero emissions no later than 2050 along a linear trajectory (at a minimum) from 2030". Most notably, if proponents cannot practicably achieve the WA EPA's minimum expectations for emission reductions, they will need to "clearly justify why" this is unachievable to the EPA. A new Greenhouse Gas Environmental Management Plan Template is available for proponents to use, which will be updated periodically by the WA EPA.
• Proponents are directed to conduct an independent expert review of best practice measures which can be adopted to achieve the WA EPA's objectives. This is intended to be undertaken as part of the proponent's GHG EMP. The revised Guideline has further emphasised the need for proponents to consider best practice measures to avoid and minimise environmental impacts from GHG emissions.
• With respect to mitigating emissions, the WA EPA now expects proponents to apply best practice measures to avoid and reduce scope 1 emissions, including through the proposal's facility design, technology choice, operation and closure.
• Proponents should only utilise, as far as practicable, carbon offsets “as a last resort”, where residual emissions cannot be avoided or to account for emissions which exceed reduction commitments or targets. Any carbon offsets used by proponents should "conserve, preserve, protect, enhance and manage the WA environment".

This Guideline will be reviewed by the WA EPA in five years, to keep up to date with the latest climate science and policies.

Resources

NT: Release of the Strategic Regional Environmental and Baseline Assessment

On 18 April 2023 the Territory Government released the Beetaloo Sub-basin Strategic Regional Environmental and Baseline Assessment (SREBA). The Beetaloo SREBA is an integrated data collection program which provides information intended to facilitate appropriate decision making on the development of natural gas extraction in the Beetaloo region. The database includes information on the assessment of water and biodiversity resources and to inform land-use planning as well as baseline data to provide a reference for ongoing monitoring. It is the most comprehensive regional scientific study ever conducted in the Northern Territory and covers an area of 86,400 square kilometres.

The SREBA Framework outlines the key information outputs for each of the six study domains:

• Water quality and quantity.
• Aquatic ecosystems.
• Terrestrial ecosystems.
• Greenhouse gas emissions.
• Environmental health.
• Social, cultural and economic.

The Framework also illustrates potential application of key information outputs from each of the study domains to regional and project-level planning, assessment, regulation and monitoring. The information relating to each study domain is described in Baseline Reports and summarised in the SREBA Regional Report.

The release of the Beetaloo SREBA responds to 35 of the 135 recommendations made in the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory. The Government has promised to implement all 135 recommendations prior to giving approval to any onshore gas production in the Territory.

Environmental, Social, and Corporate Governance (ESG)

Commonwealth: Senate inquiry into greenwashing: have your say

On 29 March, the Senate referred an inquiry into greenwashing to the Senate Standing Committee on the Environment and Communications for inquiry and report by 5 December 2023. The inquiry will investigate whether stronger more effective regulation of greenwashing is required in Australia, with a particular focus on the following as well as any other related matters:

• the environmental and sustainability claims made by companies in industries including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear;
• the impact of misleading environmental and sustainability claims on consumers;
• domestic and international examples of regulating companies’ environmental and sustainability claims;
• advertising standards in relation to environmental and sustainability claims; and
• legislative options to protect consumers from greenwashing in Australia.

Submissions to the Committee can be made until 8 June 2023 in the manner prescribed here.