Lex Mundi Global Climate Change Guide |
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Australia |
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(Asia Pacific)
Firm
Clayton Utz
Contributors
Brendan Bateman |
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Has your country signed/ratified the Paris Agreement? If so, what is its INDC / NDC? | Yes. Economy-wide target to reduce GHG emissions by 26-28% below 2005 levels by 2030. |
What are the key national policy instruments regarding climate change and what are the national long term greenhouse gas emissions (GHG) reduction targets? | Australia currently has no long-term GHG reduction target. The Federal government has indicated an intention to release a draft long-term strategy for consultation for several years, but none has been forthcoming. The Federal government has also indicated that it is desirable to achieve net-zero emissions by 2050 but has not made a commitment to achieve that target. Current national policies regarding climate change include:
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Have national policies or legislation been adopted limiting or prohibiting the use of certain fossil fuels (e.g. coal, natural gas, nuclear)? | Australia has prohibited the use of nuclear energy (Nuclear Non-Proliferation (Safeguards) Act 1987 (Cth)). Certain State governments (including NSW) have introduced bans on coal seam gas developments, and the Environment Protection and Biodiversity Conservation Act 1999 (Cth) requires environmental assessment and approval at a Commonwealth government level for the coal seam gas development that is likely to have a significant impact on surface and groundwater. |
What specific national climate change legislation has been adopted? |
The Australian Government's target under the Paris Agreement is a 26-28% cut in emissions based on 2005 levels by 2030. This is a policy target and is not legislated. State emissions schemes There are no state-specific emissions trading schemes. Some states had emissions trading schemes prior to 2012 that were removed in anticipation of the commencement of the emissions trading scheme established under the Clean Energy Act 2011. NSW had the first ETS in the world with the NSW Greenhouse Gas Abatement Scheme from 2003-2012. The Clean Energy Act was repealed in 2014 which abolished the national ETS. No state has since established its own ETS. State Emissions Targets NSW: 35% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050. NSW's targets are policy under the NSW Climate Change Policy Framework and are not legislated. SA: 50% cut in emissions from 2005 levels by 2030 (policy as of February 2020). Net-zero by 2050. Qld: 30% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050. Commitment to a 50% renewable energy target by 2030. Queensland's targets are policy under the Queensland Climate Transition Strategy and are not legislated. WA: Aligned with the Federal Government's target of a 26-28% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050. Tas: 60% cut in emissions below 1990 levels by 2050, legislated in the Climate Change (State Action) Act 2008 (Tas). Tasmania met and exceeded this target in 2017, having cut emissions by 95% below 1990 levels. Climate Action 21 strategy has an aspirational target of net-zero emissions by 2050 which is proposes to legislate under its Climate Change Act. NT: Net zero emissions by 2050 and 50% renewable energy target by 2050. ACT: The ACT legislated the following emissions targets (below 1990 levels) under the Climate Change and Greenhouse Gas Reduction Act 2010 (ACT), updated by determination in 2018:
Net-zero emissions by 2045. |
Does your country participate in an international or national GHG emissions trading scheme? | No |
Has a national CO2 tax or similar instrument been adopted? | No |
Does national legislation regulate and/or subsidize carbon capture and storage (CCS)? | The Offshore Petroleum and Greenhouse Gas Storage Act 2006 establishes a CCS regulatory framework for activities outside the constitutional boundaries of the Australian States. Some Australian States have legislative frameworks that regulate CCS activities within the limits of those States. The Australian Government has funded CCS demonstration programs that aim to capture carbon dioxide emissions, provide transport infrastructure and safely store carbon dioxide underground in stable geological formations. The Australian Federal Government has announced $50 million in new funding under the 2020-21 budget to support carbon capture, use and storage projects. These funds are available to businesses, researchers and governments by application. |
Are the production and/or use of renewable energy sources subject to a national subsidy or similar support scheme? | The Australian Renewable Energy Agency (ARENA) supports projects that advance renewable energy technologies. Currently, ARENA has invested $1.58 billion that has leveraged nearly $5 billion and has supported approximately 543 projects across the nation, since it was first set up in 2012. The Clean Energy Finance Corporation (CEFC) was established by the Clean Energy Finance Corporation Act 2012 (Cth) and has access to $2 billion each year for investment in renewable and low-emissions technology. The Renewable Energy Target (RET) scheme operates in two parts in Australia - the Small-scale Renewable Energy Scheme (SRES) and Large-scale Renewable Energy Target (LRET), legislated under the Renewable Energy (Electricity) Act 2000 (Cth): The SRES provides benefits to households and small businesses that install an eligible small-scale renewable energy system (solar, wind or hydro) by assisting with the purchase cost. The LRET creates a financial incentive for the establishment or expansion of renewable energy power stations. The target for 2020 of 33,000 gigawatt-hours of renewable electricity generation was exceeded. The Regulator has advised that the annual target will remain at 33,000-gigawatt hours until the scheme ends in 2030. The federal government released its Technology Investment Roadmap: First Low Emissions Technology Statement in August 2020, which is a policy document aimed to incentivize investment in emerging low emissions technologies. On 4 May 2020, the Australian Government announced a $300 million investment into the growth of the Australian Hydrogen industry. This funding is to be directed towards the advancement of hydrogen production; development of export and domestic supply chains and infrastructure; establishing hydrogen hubs and the development of general hydrogen building projects. State renewable targets and support schemes NSW: The NSW Government introduced the Electricity Infrastructure Investment Act 2020 (NSW) in late 2020, providing an energy plan concerning the coordination of investment into a new generation, storage and network infrastructure in NSW. This Act aligns with the Electricity Infrastructure Roadmap which provides the policy framework for investing sustainable and affordable electricity in NSW. The Roadmap provides a guide to investors that encourages investment in renewable energy projects through reduced risk as a result of the guarantee of new and emerging renewable energy infrastructure. SA: South Australia is expected to operate from 100% renewable energy within 10 years under the policy. South Australian renewable support schemes include the Home Battery Scheme, the Grid-Scale Storage Fund, and the Renewable Technology Fund. In 2020, renewable energy made up 60% of SA's electricity supply. Qld: Policy target of 50% renewable energy by 2030. Under the Powering Queensland Plan, investment is provided to large-scale solar, and undertakes reverse auctions for renewable capacity. WA: No operative renewable target. The Energy Transformation Strategy with a heavy focus on renewable energy was announced in August 2019 and established the Clean Energy Future Fund in April 2020 to support renewable investment. Tas: Policy target of meeting 200% of Tasmania's energy needs with renewable energy by 2040. This will include $50 million of investment in hydrogen energy under the Renewable Hydrogen Action Plan. Tasmania currently applies a 5.6 c/kWh feed-in tariff for household renewable energy systems less than 10 kilowatts in size. NT: Policy target of 50% renewable energy by 2030. The Energy Policy and Renewable Energy Implementation Plan currently in development will focus on investment in renewables and establishing an adequate framework for a renewable strategy. ACT: Policy target of 100% renewable energy by 2020 using heavy investment, a reverse auction program for large solar plants, and investment in solar batteries. This target was achieved by 2020 with its success largely attributed to solar and wind-generated power. |
What are the main national measures being taken to reduce GHG emissions / improve energy efficiency in the built environment? | The 2015 National Energy Productivity Plan (NEPP) aims to improve energy productivity by 40% between 2015 and 2030. The plan covers the electricity, gas, and transport sectors in order to increase competition and support energy market reform to increase energy efficiency. This includes a focus on consumer incentives, innovation support, and market reform to create cost-reflective pricing. The various goals of the NEPP are shared amongst the appropriate jurisdictions, including individual state and territory governments as well as the COAG Energy Council and market leaders. |
What are the main national measures being taken to reduce GHG emissions / improve energy efficiency in the transport sector? | Australia's transport sector is the second-largest source of its GHG emissions. Australia's emissions reduction strategy in this sector is limited to an approved land and sea transport methodology approved under the ERF by which approved projects which reduce emissions can receive ACCUs. Vehicle emission standards are currently based on the Euro 5 standards. A review is underway to determine if Euro Australia's transport sector is the third-largest source of its GHG emissions. Australia's emissions reduction strategy in this sector is limited to an approved land and sea transport methodology approved under the ERF by which approved projects which reduce emissions can receive ACCUs. Vehicle emission standards are currently based on the Euro 5 standards. A review is underway to determine if Euro 6 standards should be adopted. The electrification of domestic vehicles is not yet incentivized through widespread government policy, however:
In 2021 the Australian Government released a discussion paper informing Australia's Future Fuels Strategy, with a focus on 3 points:
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What are the main national measures being taken to reduce GHG emissions / improve energy efficiency in the industry? | Nationally there are no specific measures to reduce emissions specific to the industry. However, through the Emission Reduction Fund, the industry is able to establish projects which reduce emissions and can earn Australian carbon credit units. These credits can be sold to the Australian government or other businesses seeking to offset their emissions. The Climate First carbon neutral program permits organizations to have products and services certified as carbon neutral against the National Carbon Offset Standard. The National Energy Productivity Plan includes a target to improve Australia’s energy productivity by 40 percent between 2015 and 2030. Although not specific to the industry, it does look to improve energy use at industrial facilities. Hydrogen, energy storage, low-carbon steel and aluminum, carbon capture and storage, and soil carbon storage have been identified as priorities in the Technology Investment Roadmap. Gas continues to play an important role as a transition tool. |
What are the main national measures being taken to reduce GHG emissions / improve energy efficiency in agriculture and land use? | Industry Changes and measures concerning agriculture and land use include:
National Landcare Program: focused initiative supporting projects protecting and restoring the environment and making agriculture more sustainable and productively contributing to greenhouse gas mitigation. The Technology Investment Roadmap's investment in emerging technologies provides funding towards innovative generation in hybrid systems for off-grid or fringe-of-grid uses in agriculture. |
What are the main national measures being taken to reduce GHG emissions / improve energy efficiency in the electricity production sector? | Primarily, the RET was introduced to further increase the amount of electricity generated from ecologically sustainable renewable sources and reduce emissions of GHG in the electricity sector. Mandatory electricity sector reporting guidelines are based on a sectoral baseline and are monitored by the Clean Energy Regulator under the Safeguard Mechanism. The data collected is published and informs policy on energy efficiency and emissions reduction. Amendments to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 have taken into consideration the effect of Covid 19, making a number of amendments which include extending deadlines for reporting on baselines. The Federal Government has also announced that should the private sector fail to adequately invest in the Hydrogen sector, the Government is committed to proceeding with tax-payer-funded, gas-fired power plants. The Technology Investment Roadmap strategy seeks to prioritize bilateral agreements between the State and Federal Governments to increase the supply of energy and gas, improve grid security and reduce emissions. |
What measures are national financial institutions (incl. banks, pension funds, asset management companies and insurance companies) aimed at reducing the GHG emissions of their customers? | Banks: Australia's 20 largest banks are taking steps to reduce emissions from their investments and lending portfolios. Approximately 25% of Australian banks committed to the Science-Based Targets Initiative (SBTI), which required financial institutions to set targets for their portfolio emissions. This target must correspond to the level of emissions required to maintain global warming levels to below 2 degrees. 35% have committed to achieving net-zero emissions by 2050 for some (not all) investments and lending. 25% have taken action in reducing their portfolio emissions however are yet to make any net-zero commitments. The remaining 15% percent have not announced any emissions reduction commitments or activities concerning their portfolio emissions. Pension & Asset Management Funds: Funds are now promoting low-carbon funds and trying to exclude investments in fossil fuels. There is a greater focus on investment in climate-friendly sectors and several funds are working to decarbonize investment portfolios. Insurance companies: Australian-based insurance companies have now effectively committed to removing coal from their investment portfolios. For example, Australian insurance company Suncorp has announced it will not enter into any new deals with coal projects and will also divest itself of existing investments and deals with coal projects by 2025. Multi-national insurance company, Allianz has limited its involvement in the fossil fuel sector, by not investing in companies that derive more than 30% of their revenues through the production of coal. |
Are there prominent national climate change litigation cases in your country? If so please provide a short description (e.g. plaintiffs/defendants, public or civil law based, etc.). | According to the Sabin Centre for Climate Change Law, Australia has the second-highest number of climate change-related litigation cases internationally. The majority of cases are public law based in that they seek to challenge the validity of administrative decision processes to approve projects which may contribute to climate change. Examples of climate change litigation cases include: Greenpeace Australia Ltd v Redbank Power Pty Ltd [1994] 86 LGERA 143 That case involved a challenge by Greenpeace, supported by the Environmental Defender's Office NSW, to a government decision approving a new coal-fired power station on grounds including the potential for the power station to emit greenhouse gases (‘GHG’) and contribute to climate change. The Court held that GHG emissions are one of many issues that must be considered in granting development consent, but do not outweigh other considerations. Redbank Power has served as a model for much of the ensuing climate change litigation in Australia over the subsequent 20 years. Waratah Coal Pty Ltd v Youth Verdict Ltd & Ors [2020] QLC 33 In this case, the Land Court of Queensland dismissed an application to strike out objections made under the Human Rights Act 2019 (Qld) (HRA) by environmental groups. This case was the first circumstance in which the Land Court demonstrated its approach to resource authority applications concerning their human rights implications. The objection came from Youth Verdict Ltd and The Brimblebox Alliance Inc towards Waratah Coal's Galilee Coal Project. The objection involved a claim by these groups that the development would infringe on human rights to property and that the emissions released would limit the right to life right to recognition and equality before the law and property rights. Waratah applied to strike out human rights objections on the basis the Land Court did not have the Jurisdiction to consider such objections. The Land Court rejected this application and found that it had jurisdiction, and is obliged, to consider the objections made pursuant to the HRA. Macquarie Generation v Hodgson [2011] NSWCA 424 This case involved the first legal proceedings directly against an emitter, in this case, the operator of the largest coal-fired power station in Australia. The proceedings alleged that the operator's license issued by the NSW Environment Protection Authority to the generator to operate the power station was subject to an implied condition to limit the emission of carbon dioxide by reference to estimated coal consumption quantities as part of the development approval and that the emission of carbon dioxide by the generator involved the discharge of waste into the environment which was not authorized under the license. The discharge of waste without lawful authority was an offense under the relevant environmental regulatory regime which could be restrained by civil enforcement action. An application for summary dismissal was partially successful in the Land and Environment Court. Macquarie Generation appealed to the NSW Court of Appeal which upheld the appeal and dismissed the applicant's Summons.
Australian Conservation Foundation Incorporated v Minister for the Environment and Energy [2017] FCAFC 134 One of the many legal challenges surrounding Adani's controversial proposed coal mine in Queensland. The Australian Conservation Foundation (ACF) applied for judicial review of the Commonwealth approval under the Environment Protection and Biodiversity Conversation Act 1999 (Cth) of the Carmichael coal mine, alleging that the Minister failed to consider the impact of overseas emissions on the level of greenhouse gases in the atmosphere and the consequences for global temperatures or the impacts on the Great Barrier Reef, a protected matter of national environmental significance under the legislation. The Court held that the Minister had not failed in his statutory duty to consider the greenhouse gas emissions of the project. The Minister had approved the project taking into account the international and domestic governmental measures for managing and mitigating the scope 1, 2 and 3 emissions, concluding it was not possible to robustly connect any potential scope 3 emissions generated by the proposed project with impacts to the Great Barrier Reef. Within the context of the judicial review proceedings, the Minister's reasoning was held to be an adequate discharge of his statutory duty.
Mark McVeigh v Retail Employees Superannuation Pty Limited [2019] FCA 14 In July 2018, Mark McVeigh commenced proceedings against REST, one of Australia’s largest pension funds with total assets over A$50 billion and around 2 million members. The claim centered on REST's failure to adequately disclose its strategy to manage climate change risks, preventing customers from making informed judgments about the fund's performance and management, and also breached REST's statutory disclosure requirements. In November 2020, a settlement was reached between the parties whereby REST confirmed it would incorporate climate change risk into its investments and implement a net-zero carbon footprint goal for 2050. Petition of Torres Strait Islanders to the UN Human Rights Committee Alleging Violations Stemming from Australia’s Inaction on Climate Change In May 2019, a group of eight Torres Strait Islanders lodged a complaint with the UN Human Rights Committee against the Australian government for breaching human rights obligations owed under the International Covenant on Civil and Political Rights (ICCPR). It is argued that the Australian government’s failure to take sufficient action to curb emissions and implement adaptation measures has violated the right to culture, right to a family and right to life under the ICCPR.10. This case is significant as it is the first climate change case brought by inhabitants of low-lying islands and also the first case brought against the Australian Government in respect of breaches of human rights obligations in the context of climate change.
Gloucester Resources Limited v Minister for Planning [2019] NSWLEC 7 Gloucester Resources appealed the NSW Minister for Planning's decision to deny an application for an open-cut coal mine in NSW called the Rocky Hill Coal Project. The Land and Environment Court upheld Minister's decision, determining that the project was not in the public interest as the social impacts, including climate change impacts, outweighed the benefits. The LEC established a framework for assessing social impacts and held that upstream and downstream (scope 3) emissions from a project should be considered by the Planning Department when assessing applications. NSW parliament is currently considering legislative change to clarify the consideration of scope 3 emissions as part of the environmental assessment of projects. O'Donnell v Commonwealth and Ors This case involves a claim brought against the Australian Federal Government, alleging that Australia's economy and reputation internationally will be poorly affected by the inadequate response of the Government to climate change. The claim suggests investors in the Australian market, particularly Australian Government Bonds, have had their rights breached due to the non-disclosure of such risks. This case is currently awaiting judgment. Sharma and Others v Minister for the Environment In late 2020, eight young students filed a class-action suit in the Federal Court to block the Vickery Extension Project. The suit seeks an injunction restraining the Minister from granting approval on the basis that to allow the extension to proceed, would breach the Minister's duty to protect young people from further harm caused by climate change. This case is awaiting judgment. |
Climate change policies, measures or legislation (other than those covered by the questions above) | N/A |
Lex Mundi Global Climate Change Guide
Yes. Economy-wide target to reduce GHG emissions by 26-28% below 2005 levels by 2030.
Australia currently has no long-term GHG reduction target. The Federal government has indicated an intention to release a draft long-term strategy for consultation for several years, but none has been forthcoming. The Federal government has also indicated that it is desirable to achieve net-zero emissions by 2050 but has not made a commitment to achieve that target. Current national policies regarding climate change include:
- Climate Solutions Fund (incorporating the Emissions Reduction Fund) which involves the Government contracting to purchase offsets from domestic emission reduction projects or fund other emission reduction and adaptation projects.
- Safeguard Mechanism which seeks to limit emissions growth from large emitters by the establishment of facility-level emission baselines.
- Renewable Energy Target requires 20% of electricity to be from renewable sources by 2020 which target is to be maintained until 2030. The target was met in 2019 and will not be increased.
- National Energy Productivity Plan to improve energy efficiency by 40% between 2015-2030.
- Ozone and HFC Measures include a gradual reduction in the maximum amount of bulk hydrofluorocarbons permitted to be imported into Australia.
- Technology Investment Roadmap released in 2020, and annual Technology Statements, which is a long-term strategy to incentivize investment and accelerate the adoption of new and emerging low emissions technologies.
Australia has prohibited the use of nuclear energy (Nuclear Non-Proliferation (Safeguards) Act 1987 (Cth)).
Certain State governments (including NSW) have introduced bans on coal seam gas developments, and the Environment Protection and Biodiversity Conservation Act 1999 (Cth) requires environmental assessment and approval at a Commonwealth government level for the coal seam gas development that is likely to have a significant impact on surface and groundwater.
- Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) establishes the Carbon Farming Initiative, a program to develop domestic offset projects under approved methodologies. The Carbon Farming Initiative transitioned to the Emissions Reductions Fund, which is now the Climate Solutions Fund.
- Climate Solutions Fund (incorporating the Emissions Reduction Fund (ERF)): a non-market carbon credit scheme where the government can issue Australian Carbon Credit Units (ACCUs) to accredited projects under approved methodologies.
- National Greenhouse and Energy Reporting Act 2007 (Cth) establishes a GHG and energy reporting scheme and provides baseline data for the Safeguard Mechanism.
- Renewable Energy (Electricity) Act 2000 (Cth) establishes the Large Scale Renewable Energy Target and Small Scale Renewable Energy Target schemes.
- Australian National Registry of Emissions Units Act 2011 (Cth) establishes the Australian National Registry of Emissions Units to track the location and ownership of Australian carbon credit units issued under the Emissions Reduction Fund and Kyoto Protocol.
- Clean Energy Finance Corporation Act 2012 (Cth) establishes the CEFC as a government-owned corporation to facilitate investment in the clean energy sector.
- Australian Renewable Energy Agency Act 2011 (Cth) establishes ARENA to manage and increase supply in Australian renewable energy sources.
- The Clean Energy Act 2011 (Cth) which established an emissions trading scheme that applied to all sectors of the economy except agriculture was repealed in 2014.
The Australian Government's target under the Paris Agreement is a 26-28% cut in emissions based on 2005 levels by 2030. This is a policy target and is not legislated.
State emissions schemes
There are no state-specific emissions trading schemes. Some states had emissions trading schemes prior to 2012 that were removed in anticipation of the commencement of the emissions trading scheme established under the Clean Energy Act 2011. NSW had the first ETS in the world with the NSW Greenhouse Gas Abatement Scheme from 2003-2012. The Clean Energy Act was repealed in 2014 which abolished the national ETS. No state has since established its own ETS.
State Emissions Targets
NSW: 35% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050. NSW's targets are policy under the NSW Climate Change Policy Framework and are not legislated.
SA: 50% cut in emissions from 2005 levels by 2030 (policy as of February 2020). Net-zero by 2050.
Qld: 30% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050. Commitment to a 50% renewable energy target by 2030. Queensland's targets are policy under the Queensland Climate Transition Strategy and are not legislated.
WA: Aligned with the Federal Government's target of a 26-28% cut in emissions from 2005 levels by 2030. Net-zero emissions by 2050.
Tas: 60% cut in emissions below 1990 levels by 2050, legislated in the Climate Change (State Action) Act 2008 (Tas). Tasmania met and exceeded this target in 2017, having cut emissions by 95% below 1990 levels. Climate Action 21 strategy has an aspirational target of net-zero emissions by 2050 which is proposes to legislate under its Climate Change Act.
NT: Net zero emissions by 2050 and 50% renewable energy target by 2050.
ACT: The ACT legislated the following emissions targets (below 1990 levels) under the Climate Change and Greenhouse Gas Reduction Act 2010 (ACT), updated by determination in 2018:
- 40% by 2020
- 50-60% by 2025
- 65-75% by 2030
- 90-95% by 2040
Net-zero emissions by 2045.
No
No
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 establishes a CCS regulatory framework for activities outside the constitutional boundaries of the Australian States. Some Australian States have legislative frameworks that regulate CCS activities within the limits of those States.
The Australian Government has funded CCS demonstration programs that aim to capture carbon dioxide emissions, provide transport infrastructure and safely store carbon dioxide underground in stable geological formations.
The Australian Federal Government has announced $50 million in new funding under the 2020-21 budget to support carbon capture, use and storage projects. These funds are available to businesses, researchers and governments by application.
The Australian Renewable Energy Agency (ARENA) supports projects that advance renewable energy technologies. Currently, ARENA has invested $1.58 billion that has leveraged nearly $5 billion and has supported approximately 543 projects across the nation, since it was first set up in 2012.
The Clean Energy Finance Corporation (CEFC) was established by the Clean Energy Finance Corporation Act 2012 (Cth) and has access to $2 billion each year for investment in renewable and low-emissions technology.
The Renewable Energy Target (RET) scheme operates in two parts in Australia - the Small-scale Renewable Energy Scheme (SRES) and Large-scale Renewable Energy Target (LRET), legislated under the Renewable Energy (Electricity) Act 2000 (Cth):
The SRES provides benefits to households and small businesses that install an eligible small-scale renewable energy system (solar, wind or hydro) by assisting with the purchase cost.
The LRET creates a financial incentive for the establishment or expansion of renewable energy power stations. The target for 2020 of 33,000 gigawatt-hours of renewable electricity generation was exceeded. The Regulator has advised that the annual target will remain at 33,000-gigawatt hours until the scheme ends in 2030.
The federal government released its Technology Investment Roadmap: First Low Emissions Technology Statement in August 2020, which is a policy document aimed to incentivize investment in emerging low emissions technologies.
On 4 May 2020, the Australian Government announced a $300 million investment into the growth of the Australian Hydrogen industry. This funding is to be directed towards the advancement of hydrogen production; development of export and domestic supply chains and infrastructure; establishing hydrogen hubs and the development of general hydrogen building projects.
State renewable targets and support schemes
NSW: The NSW Government introduced the Electricity Infrastructure Investment Act 2020 (NSW) in late 2020, providing an energy plan concerning the coordination of investment into a new generation, storage and network infrastructure in NSW. This Act aligns with the Electricity Infrastructure Roadmap which provides the policy framework for investing sustainable and affordable electricity in NSW. The Roadmap provides a guide to investors that encourages investment in renewable energy projects through reduced risk as a result of the guarantee of new and emerging renewable energy infrastructure.
SA: South Australia is expected to operate from 100% renewable energy within 10 years under the policy. South Australian renewable support schemes include the Home Battery Scheme, the Grid-Scale Storage Fund, and the Renewable Technology Fund. In 2020, renewable energy made up 60% of SA's electricity supply.
Qld: Policy target of 50% renewable energy by 2030. Under the Powering Queensland Plan, investment is provided to large-scale solar, and undertakes reverse auctions for renewable capacity.
WA: No operative renewable target. The Energy Transformation Strategy with a heavy focus on renewable energy was announced in August 2019 and established the Clean Energy Future Fund in April 2020 to support renewable investment.
Tas: Policy target of meeting 200% of Tasmania's energy needs with renewable energy by 2040. This will include $50 million of investment in hydrogen energy under the Renewable Hydrogen Action Plan. Tasmania currently applies a 5.6 c/kWh feed-in tariff for household renewable energy systems less than 10 kilowatts in size.
NT: Policy target of 50% renewable energy by 2030. The Energy Policy and Renewable Energy Implementation Plan currently in development will focus on investment in renewables and establishing an adequate framework for a renewable strategy.
ACT: Policy target of 100% renewable energy by 2020 using heavy investment, a reverse auction program for large solar plants, and investment in solar batteries. This target was achieved by 2020 with its success largely attributed to solar and wind-generated power.
The 2015 National Energy Productivity Plan (NEPP) aims to improve energy productivity by 40% between 2015 and 2030. The plan covers the electricity, gas, and transport sectors in order to increase competition and support energy market reform to increase energy efficiency. This includes a focus on consumer incentives, innovation support, and market reform to create cost-reflective pricing.
The various goals of the NEPP are shared amongst the appropriate jurisdictions, including individual state and territory governments as well as the COAG Energy Council and market leaders.
Australia's transport sector is the second-largest source of its GHG emissions. Australia's emissions reduction strategy in this sector is limited to an approved land and sea transport methodology approved under the ERF by which approved projects which reduce emissions can receive ACCUs.
Vehicle emission standards are currently based on the Euro 5 standards. A review is underway to determine if Euro
Australia's transport sector is the third-largest source of its GHG emissions. Australia's emissions reduction strategy in this sector is limited to an approved land and sea transport methodology approved under the ERF by which approved projects which reduce emissions can receive ACCUs.
Vehicle emission standards are currently based on the Euro 5 standards. A review is underway to determine if Euro 6 standards should be adopted.
The electrification of domestic vehicles is not yet incentivized through widespread government policy, however:
- ARENA provides research and development funding to advance the use of biofuels and is currently contributing funding to a project to provide an electric vehicle charging network along Australia’s east coast.
- The Clean Energy Finance Corporation (CEFC) provides financing for converting trucks and vans to electric vehicles and switching from road to rail transport.
- In 2020, the first Low Emissions Technology Statement was provided, setting out broad technology-related goals as part of the Technology Investment Roadmap. In regards to transport, it notes the low emissions technologies are at an early stage of development, such as more efficiency and zero-emissions drivetrains, mode shift technologies, and low emissions aircraft. Battery, hybrid and plug-in hybrid vehicles are also in development.
In 2021 the Australian Government released a discussion paper informing Australia's Future Fuels Strategy, with a focus on 3 points:
- Addressing barriers to roll-out of new vehicle technologies;
- investing in early-stage technologies to stimulate the market and drive public sector investment, and;
- Providing adequate access to Australians to make informed choices concerning future fuel and vehicle technologies.
Nationally there are no specific measures to reduce emissions specific to the industry. However, through the Emission Reduction Fund, the industry is able to establish projects which reduce emissions and can earn Australian carbon credit units. These credits can be sold to the Australian government or other businesses seeking to offset their emissions.
The Climate First carbon neutral program permits organizations to have products and services certified as carbon neutral against the National Carbon Offset Standard.
The National Energy Productivity Plan includes a target to improve Australia’s energy productivity by 40 percent between 2015 and 2030. Although not specific to the industry, it does look to improve energy use at industrial facilities.
Hydrogen, energy storage, low-carbon steel and aluminum, carbon capture and storage, and soil carbon storage have been identified as priorities in the Technology Investment Roadmap. Gas continues to play an important role as a transition tool.
Industry Changes and measures concerning agriculture and land use include:
- Emissions Reduction Fund: Provides additional income streams for farmers and land managers who are able to adopt new practices to reduce their GHG emissions and store carbon.
- Clean Energy Innovation Fund: Supports investments in emerging technologies and works with financiers and energy providers to increase investment in agricultural businesses. The investments help agricultural businesses save on energy costs and usage.
National Landcare Program: focused initiative supporting projects protecting and restoring the environment and making agriculture more sustainable and productively contributing to greenhouse gas mitigation.
The Technology Investment Roadmap's investment in emerging technologies provides funding towards innovative generation in hybrid systems for off-grid or fringe-of-grid uses in agriculture.
Primarily, the RET was introduced to further increase the amount of electricity generated from ecologically sustainable renewable sources and reduce emissions of GHG in the electricity sector.
Mandatory electricity sector reporting guidelines are based on a sectoral baseline and are monitored by the Clean Energy Regulator under the Safeguard Mechanism. The data collected is published and informs policy on energy efficiency and emissions reduction.
Amendments to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 have taken into consideration the effect of Covid 19, making a number of amendments which include extending deadlines for reporting on baselines.
The Federal Government has also announced that should the private sector fail to adequately invest in the Hydrogen sector, the Government is committed to proceeding with tax-payer-funded, gas-fired power plants.
The Technology Investment Roadmap strategy seeks to prioritize bilateral agreements between the State and Federal Governments to increase the supply of energy and gas, improve grid security and reduce emissions.
Banks:
Australia's 20 largest banks are taking steps to reduce emissions from their investments and lending portfolios. Approximately 25% of Australian banks committed to the Science-Based Targets Initiative (SBTI), which required financial institutions to set targets for their portfolio emissions. This target must correspond to the level of emissions required to maintain global warming levels to below 2 degrees. 35% have committed to achieving net-zero emissions by 2050 for some (not all) investments and lending. 25% have taken action in reducing their portfolio emissions however are yet to make any net-zero commitments. The remaining 15% percent have not announced any emissions reduction commitments or activities concerning their portfolio emissions.
Pension & Asset Management Funds:
Funds are now promoting low-carbon funds and trying to exclude investments in fossil fuels. There is a greater focus on investment in climate-friendly sectors and several funds are working to decarbonize investment portfolios.
Insurance companies:
Australian-based insurance companies have now effectively committed to removing coal from their investment portfolios. For example, Australian insurance company Suncorp has announced it will not enter into any new deals with coal projects and will also divest itself of existing investments and deals with coal projects by 2025. Multi-national insurance company, Allianz has limited its involvement in the fossil fuel sector, by not investing in companies that derive more than 30% of their revenues through the production of coal.
According to the Sabin Centre for Climate Change Law, Australia has the second-highest number of climate change-related litigation cases internationally. The majority of cases are public law based in that they seek to challenge the validity of administrative decision processes to approve projects which may contribute to climate change. Examples of climate change litigation cases include:
Greenpeace Australia Ltd v Redbank Power Pty Ltd [1994] 86 LGERA 143
That case involved a challenge by Greenpeace, supported by the Environmental Defender's Office NSW, to a government decision approving a new coal-fired power station on grounds including the potential for the power station to emit greenhouse gases (‘GHG’) and contribute to climate change. The Court held that GHG emissions are one of many issues that must be considered in granting development consent, but do not outweigh other considerations. Redbank Power has served as a model for much of the ensuing climate change litigation in Australia over the subsequent 20 years.
Waratah Coal Pty Ltd v Youth Verdict Ltd & Ors [2020] QLC 33
In this case, the Land Court of Queensland dismissed an application to strike out objections made under the Human Rights Act 2019 (Qld) (HRA) by environmental groups. This case was the first circumstance in which the Land Court demonstrated its approach to resource authority applications concerning their human rights implications. The objection came from Youth Verdict Ltd and The Brimblebox Alliance Inc towards Waratah Coal's Galilee Coal Project. The objection involved a claim by these groups that the development would infringe on human rights to property and that the emissions released would limit the right to life right to recognition and equality before the law and property rights. Waratah applied to strike out human rights objections on the basis the Land Court did not have the Jurisdiction to consider such objections. The Land Court rejected this application and found that it had jurisdiction, and is obliged, to consider the objections made pursuant to the HRA.
Macquarie Generation v Hodgson [2011] NSWCA 424
This case involved the first legal proceedings directly against an emitter, in this case, the operator of the largest coal-fired power station in Australia. The proceedings alleged that the operator's license issued by the NSW Environment Protection Authority to the generator to operate the power station was subject to an implied condition to limit the emission of carbon dioxide by reference to estimated coal consumption quantities as part of the development approval and that the emission of carbon dioxide by the generator involved the discharge of waste into the environment which was not authorized under the license. The discharge of waste without lawful authority was an offense under the relevant environmental regulatory regime which could be restrained by civil enforcement action. An application for summary dismissal was partially successful in the Land and Environment Court. Macquarie Generation appealed to the NSW Court of Appeal which upheld the appeal and dismissed the applicant's Summons.
Australian Conservation Foundation Incorporated v Minister for the Environment and Energy [2017] FCAFC 134
One of the many legal challenges surrounding Adani's controversial proposed coal mine in Queensland. The Australian Conservation Foundation (ACF) applied for judicial review of the Commonwealth approval under the Environment Protection and Biodiversity Conversation Act 1999 (Cth) of the Carmichael coal mine, alleging that the Minister failed to consider the impact of overseas emissions on the level of greenhouse gases in the atmosphere and the consequences for global temperatures or the impacts on the Great Barrier Reef, a protected matter of national environmental significance under the legislation. The Court held that the Minister had not failed in his statutory duty to consider the greenhouse gas emissions of the project. The Minister had approved the project taking into account the international and domestic governmental measures for managing and mitigating the scope 1, 2 and 3 emissions, concluding it was not possible to robustly connect any potential scope 3 emissions generated by the proposed project with impacts to the Great Barrier Reef. Within the context of the judicial review proceedings, the Minister's reasoning was held to be an adequate discharge of his statutory duty.
Mark McVeigh v Retail Employees Superannuation Pty Limited [2019] FCA 14
In July 2018, Mark McVeigh commenced proceedings against REST, one of Australia’s largest pension funds with total assets over A$50 billion and around 2 million members.
The claim centered on REST's failure to adequately disclose its strategy to manage climate change risks, preventing customers from making informed judgments about the fund's performance and management, and also breached REST's statutory disclosure requirements.
In November 2020, a settlement was reached between the parties whereby REST confirmed it would incorporate climate change risk into its investments and implement a net-zero carbon footprint goal for 2050.
Petition of Torres Strait Islanders to the UN Human Rights Committee Alleging Violations Stemming from Australia’s Inaction on Climate Change
In May 2019, a group of eight Torres Strait Islanders lodged a complaint with the UN Human Rights Committee against the Australian government for breaching human rights obligations owed under the International Covenant on Civil and Political Rights (ICCPR). It is argued that the Australian government’s failure to take sufficient action to curb emissions and implement adaptation measures has violated the right to culture, right to a family and right to life under the ICCPR.10. This case is significant as it is the first climate change case brought by inhabitants of low-lying islands and also the first case brought against the Australian Government in respect of breaches of human rights obligations in the context of climate change.
Gloucester Resources Limited v Minister for Planning [2019] NSWLEC 7
Gloucester Resources appealed the NSW Minister for Planning's decision to deny an application for an open-cut coal mine in NSW called the Rocky Hill Coal Project. The Land and Environment Court upheld Minister's decision, determining that the project was not in the public interest as the social impacts, including climate change impacts, outweighed the benefits. The LEC established a framework for assessing social impacts and held that upstream and downstream (scope 3) emissions from a project should be considered by the Planning Department when assessing applications. NSW parliament is currently considering legislative change to clarify the consideration of scope 3 emissions as part of the environmental assessment of projects.
O'Donnell v Commonwealth and Ors
This case involves a claim brought against the Australian Federal Government, alleging that Australia's economy and reputation internationally will be poorly affected by the inadequate response of the Government to climate change. The claim suggests investors in the Australian market, particularly Australian Government Bonds, have had their rights breached due to the non-disclosure of such risks. This case is currently awaiting judgment.
Sharma and Others v Minister for the Environment
In late 2020, eight young students filed a class-action suit in the Federal Court to block the Vickery Extension Project. The suit seeks an injunction restraining the Minister from granting approval on the basis that to allow the extension to proceed, would breach the Minister's duty to protect young people from further harm caused by climate change. This case is awaiting judgment.
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