Ratification of the Kyoto Protocol
On 3 December 2007, the day on which the new Labor Government was officially formed, it ratified the Kyoto Protocol (protocol). The ratification will become effective in mid March 2008.
The effects for Australia of ratification of the protocol are as follows:
- The protocol places limits, which are binding on Australia as a matter of international law, on emissions of six greenhouse gases (GHGs) (CO2, N2O, CH4, SF6, perfluorocarbons and hydrofluorocarbons). Australia’s commitment will be to limit its GHG emissions in the period from 1 January 2008 to 31 December 2012 (First Commitment Period) to 108 per cent of 1990 emissions.
- The protocol will allow Australia to include, in its calculation of net changes in overall emissions, removals of GHGs by ‘sinks’.
- The protocol establishes:
- international emissions trading regime; and
- types of ‘project-based’ emissions trading schemes known as joint implementation (JI) and the clean development mechanism.
- Compliance with the protocol’s emissions limitations is enforced through an ‘enforcement branch’ (branch). If the branch determines that Australia has exceeded its assigned amount for the First Commitment Period, the following consequences (among others) will apply:
- Australia will suffer a proportionate reduction in its allowance for the next commitment period; and
- Australia’s eligibility to participate in emissions trading is suspended.
- One significant possible outcome of ratification of the protocol is the inclusion of a ‘greenhouse trigger’ in the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) addressed to projects which, in construction or operation (or both), will emit GHGs and requiring those projects to undergo the impact assessment before being approved under the EPBC Act.
Clean Coal Initiative
The Labor Government can be expected to implement its clean coal initiative: Labor's Clean Coal Initiative (initiative). Under the Initiative, Labor will establish a $500 million fund for development of clean coal technologies. $275 million of the fund will be spent as follows:
- $50 million for a national carbon mapping and infrastructure plan, including $20 million and $5 million (respectively) to map and test carbon storage sites in Queensland and Western Australia
- $75 million for a national research program, including $25 million to support CSIRO research
- $50 million for a pilot coal gasification plant in Queensland
- $50 million to demonstrate carbon capture and storage in New South Wales, comprising $20 million to identify and test possible storage sites in New South Wales and funding for a large-scale post combustion capture unit on an existing power station in either the Hunter or Central West that would capture more than 50,000 tonnes of CO2 a year, and
- $50 million to install by 2011 a large-scale post-combustion capture plant in Victoria's Latrobe Valley.
Renewable energy
The Labor Government is expected to implement its announced policies on renewable energy: Labor's 20 Per Cent Target For a Renewable Energy Future. Labor has promised to ensure that at least 20 per cent of Australia's electricity supply (approximately 60,000 GWh) is generated from renewable sources by 2020. The aim is to combine existing and proposed state and territory renewable energy schemes and the national Mandatory Renewable Energy Target scheme into a single national scheme.
Clean energy funds
The Labor Government is expected to implement its announced policies on ‘clean’ energy: Federal Labor's Clean Energy Plan To Help Tackle Climate Change. Labor has promised to provide:
- $500 million for a Renewable Energy Fund,
- $150 million for an Energy Innovation Fund, and
- $240 million for a Clean Business Fund.
The existing Low Emissions Technology Demonstration Fund scheme and the Greenhouse Gas Abatement Program will be abolished.
Water Efficiency Program
The Labor Government’s National Plan To Tackle The Water Crisis establishes a National Water Efficiency Opportunities Program for large industrial water users.
Labor's $1 billion National Urban Water and Desalination Plan will provide a 10 per cent water tax credit—capped at $100 million per project—for upfront capital costs on approved desalination, water recycling and major stormwater capture projects. The private sector and local and state governments will have until the end of June 2009 to submit proposals to Infrastructure Australia (IA), a statutory authority to be established and charged with the task of auditing infrastructure and driving infrastructure reform. IA will conduct an independent, cost-benefit assessment of the proposals. Projects will need to be carbon neutral and ‘will be required to have regard to the development of a national emissions trading system’ to be eligible for the tax credit.
The Labor Government has also committed to combining the Murray Darling Basin Commission and the Murray Darling Basin Authority into one body, and to combining many other federal bodies with water responsibilities into one water agency. The Labor Government is committed to restoring 500 billion litres to the Murray Darling Basin ‘as a matter of urgency’ and 1500 billion litres within the next decade.
The water policy also includes a raft of specific project funding commitments including:
- $408 million towards south east Queensland's Western Corridor Recycling project
- $20 million for the Shell Geelong water recycling project in Victoria
- up to $160 million towards a desalination plant in South Australia's Upper Spencer Gulf, and
- up to $4 million so that Delta Electricity in the New South Wales town of Lithgow can use recycled water instead of potable water.
The Labor Government has set an aspirational target that by 2020 all Australian homes, where suitable, will have water saving devices such as rainwater tanks and greywater reuse systems and has committed to provide rebates of up to $500 to help 500,000 homes install new piping for greywater use or rainwater tanks.
National Solar Schools and Solar Homes Plan
The Labor Government is expected to implement its announced policies on ‘solar schools’ and ‘solar homes’: Solar Schools – Solar Homes (Official Election Policy Document) (policy). Under the policy, any Australian school can apply for grants of up to $20,000 to install two kilowatt solar panels and grants of up to $30,000 for other water and energy efficiency measures.
Investment in Green Precincts
The Labor Government is expected to implement its announced Investment in Green Precincts policy (policy). Under the policy, $15 million will be invested in at least 10 high profile practical projects to encourage water and energy saving measures such as solar and rainwater. $1 million has already been pledged towards the Windy Hill Green Precinct Project.
Coastal Care
The Labor Government is expected to implement its announced policy on coastal care: Federal Labor’s Caring for Our Coasts (policy). This policy is designed to address issues facing coastal communities, including climate change, rapid population growth and catchment degradation. The Prime Minister’s Science, Engineering and Innovation Council recently suggested that over 700,000 coastal addresses are potentially at risk from long term sea level rise and large storm surges.
The Great Barrier Reef
The Labor Government can also be expected to implement its announced policy for the Great Barrier Reef, which specifically refers to climate change issues: Federal Labor’s Reef Rescue Plan (plan). This plan involves a $200 million five-year plan to address climate change and water quality issues.
No new policy development this quarter.
Environmental offsets discussion paper released
The Queensland Government has released a public discussion paper on environmental offsets. The discussion paper outlines proposed policy principles to be considered in the use of the offsets policy and a new scheme called Green Invest, which would be administered by the EPA and the Department of Natural Resources and Water respectively.
Green Invest is an offsets exchange facility designed to achieve ‘efficient and effective identification, evaluation, registration and ongoing administration of offset agreements to meet anticipated offset demand’. The discussion of Green Invest considers offsets required under the Vegetation Management Act 1999 and the Nature Conservation (Koala) Conservation Plan 2000, however it has been suggested that the proposed policy could extend to deal with water, biodiversity and carbon offsets.
Test drilling for sequestration reservoirs
Acting Energy Minister, John Mickel, has announced that test drilling has begun in Central Queensland as part of a $100 million feasibility study for the Zerogen clean coal project. The clean coal project entails the construction of a system where coal is converted to gas for generation, with emissions being captured at the site, transported and stored underground in deep reservoirs in the Northern Denison Trough around Emerald.
The system could capture and store up to 420,000 tonnes of carbon dioxide a year, which is equivalent to taking 93,000 cars off the road for a year.
Woodside’s Pluto LNG Project given federal approval
Following the Western Australian government’s approval of Woodside’s Pluto LNG project (project), on 12 October 2007 the former Federal Environment Minister Malcolm Turnbull granted federal environmental approval.
The project will be subject to a number of environmental conditions. The conditions include requirements for:
- management plans outlining offshore impacts, which include measures in relation to drilling operations, construction and installation
- a Dredging and Dredge Spoil Management Plan, before capital dredging commences, and
- management plans in relation to potential hydrocarbon spills and to mitigate any potential impacts on threatened species including the olive python, sea turtles and marine mammals.
- In addition, minimum targets have been set in relation to indigenous participation in the project, including indigenous involvement in the construction, operational workforce and local supply contracts.
Gorgon Gas Project received federal approval
The Gorgon gas project has received federal approval, subject to a number of environmental conditions. The conditions include requirements for:
- the development and implementation of a quarantine management plan and a protection regime for the flatback turtle; and
- environmental management plans in relation to the operation of the gas field and refining plant.
Heritage Conservation Planning Bulletin released
The Western Australian Planning Commission has released Planning Bulletin 88: Historic Conservation Heritage (November 2007) (policy), which introduces State Planning Policy 3.5: Historic Heritage Conservation, and sets out the principles of sound and responsible planning for the conservation and protection of Western Australia’s historic heritage.
The policy aims to conserve historic cultural heritage places and areas, to ensure that development does not adversely affect these places and that heritage significance is given due weight in planning decision-making at both state and local levels.
Riverbank Funding Announced
The $1 million funding, mentioned in the October edition of Environment Quarterly, which was available to local and state government land managers for Swan and Canning riverbank projects which support foreshore protection and rehabilitation, has been allocated for 2007–08.
The State Environment Minister announced that almost $1 million will be distributed amongst 14 projects aimed at improving the health of the rivers. The projects involve a wide range of foreshore restoration and protection activities that improve and manage native vegetation, develop degraded areas, alleviate erosion and take into account public amenity and safety.
Bunbury Port Assessment
As part of the state-wide port inspections mentioned in the October edition of Environment Quarterly, which aim to ensure environmental and health standards are met, the DEC has begun its assessment of the Bunbury Port (port).
An initial screening of the port and inspection of the equipment, systems and practices will take place, followed by assessments of each user’s sites. The main focus of the inspection is to screen for off-site emissions and to ensure the port is capable of storing and handling products.
Inspections of the Geraldton, Derby and Wyndham ports have already been undertaken.
Muckaty Station nominated as nuclear dumping site
The Federal Government accepted the Northern Land Council's nomination for Muckaty Station to be a nuclear dumping site, after the land's traditional owners agreed to store waste on a 1.5 square kilometre section of the land.
Government to upgrade national park
The Northern Territory Government will spend $1 million to upgrade the Nitmiluk National Park by building a pedestrian crossover between two gorges.
Glyde Point rezoned for protection
The Chief Minister and the Minister for Planning and Lands have announced that the Glyde Point coastline, previously intended for heavy industrial development, is to be rezoned from industrial land to public open space, including a 500 metre conservation zone around Leeder's Creek.
The gas industry will instead be developed at Middle Arm Peninsula, where it will be supported by existing infrastructure.
DNRETA releases Alice water strategy
The Alice Springs Water Resource Strategy 2006–2015 (strategy) has been made available by the Department of Natural Resources, Environment and the Arts (DNRETA).
The strategy is a water allocation plan made under the Water Act 1992, and aims to provide the best long term use of Alice Springs water resources while balancing social and environmental protection and the need to encourage economic growth.
The strategy explains the interaction of rivers and groundwater, describes the range of regional water needs and how they will be met, aspires to avoid economic costs and environmental losses due to over-extraction, salinity and poor water quality, and better coordinates the management of water resources.
No new policy developments this quarter.
Impact assessment process streamlined
The Planning Minister has announced that the ACT Government is completing negotiations with the Federal Government for a bilateral agreement that will simplify the environmental impact assessment process for developers. $541,000 will be invested over the next four years to integrate federal and ACT impact assessment processes into one streamlined mechanism. It is anticipated that the new arrangements will begin in July 2008.
Wonthaggi EES referral goes to Planning Minister
The referral for a decision on whether an EES is required for the desalination plant at Wonthaggi has been lodged with the Minister for Planning. The referral was accompanied by 17 detailed technical reports that indicated that the proposed Wonthaggi desalination plant would have no significant environmental impact.
EES not required for Sugarloaf Pipeline
Planning Minister Justin Madden has announced that an EES will not be required for the Sugarloaf Pipeline, due to the flexible alignment of the pipeline, which allows the potential environmental effects to be avoided or mitigated. The 70 kilometre pipeline will transfer water from the Goulburn River to the Sugarloaf Reservoir.
Review of residential zones
In February 2008 the Minister for Planning initiated a review of the residential zones in the discussion paper called ‘New Residential Zones for Victoria’. Among other things, the discussion paper outlines a proposed structure for three new zones:
- substantial change zone, for areas that present opportunities to substantially increase the number and diversity of dwellings
- incremental change zone, for areas where change can continue to occur in a manner which respects the character of the area, and
- limited change zone, for areas with limited opportunity to change because of identified development constraints including special neighbourhood character, environmental and landscape values or infrastructure capacity.
- A review is being carried out by a group of local government planners and the Municipal Association of Victoria, and the discussion paper is open for public comment until 5pm on Friday, 18 April 2008. The discussion paper can be found on the Department of Planning and Community Development website.
Northern Region Sustainable Water Strategy Discussion Paper
In January 2008 the Department of Sustainability and Environment released a discussion paper which outlines water resources, river health and key challenges facing the management of water resources in the northern region. These challenges include the impacts of prolonged drought and drought response initiatives, and climate change.
The discussion paper is on public consultation until 5pm on 17 March 2008, following which a draft strategy will be released for further comment in mid-2008. The discussion paper can be found on the Our Water Our Future website.
Draft Guidelines for Risk Assessment of Waste Water Discharges to Waterways
The Victorian Environment Protection Authority (EPA) has released ‘Draft Guidelines for Risk Assessment of Waste Water Discharges to Waterways’ that are intended, when finalised, to provide guidance to practitioners conducting waste water discharge risk assessments. A number of risk assessment pilot applications will be conducted over the next year to provide practical examples of the implementation of the risk assessment process for waste water discharges.
Comments on the draft guidelines may be submitted to the EPA by 16 May 2008.
Proposed changes to water and sewage regulation
The Tasmanian treasury has released Future Regulation of the Tasmanian Water and Sewerage Sector: Part A - Proposed Position Paper (paper). This is the first of a two part report discussing the need for structural and regulatory reform to ensure the long term sustainability of the water and sewerage sector.
The paper has been prepared by the Ministerial Water and Sewerage Taskforce and focuses on potential changes to water and sewerage asset management and service delivery. The review does not extend to stormwater, water used for irrigation or water used for electricity generation.
More information
For information regarding possible implications for your business, contact a member of the Environment & Planning team.