Experts warn of “significant new hurdles” for renewables, as LNP ends funding for EDO

The Queensland government’s ability to responsibly steer reforms to how renewables projects are regulated within the state is in question after it broke a promise not to strip the Environmental Defenders Office of funding on Thursday.

The decision comes as consultation has opened on major reforms to how large-scale wind and solar farms are assessed in the state.

A push to standardise the way wind and solar projects were regulated in the state began in September 2024 under the previous Labor government but the initiative has since been taken over by the LNP that flagged the introduction of stricter requirements in January.

Legal observers have noted the changes will mean new solar farms bigger than two hectares or producing more than one megawatt will be required to undertake new social impact and commit to community benefit arrangements before they can apply for approval. Projects that fail to get approval by the time the changes come into force will be forced to start over.

One analysis by King and Wood Mallesons in Brisbane described the changes as representing “a key step in standardising renewable energy project assessment” but warned that forcing companies to start-over presents “significant new hurdles that proponents of wind and solar projects (and their investors) will need to grapple with”.

Matthew Austin, a partner with the firm, said the changes will bring regulatory requirements for large-scale solar projects into line with other industrial developments but also would “frontload the assessment of impacts and consideration of community benefits”.

“That’s the difference here,” Austin said. “What is now being mandated in the legislation for wind and solar is that you need to do these things prior to lodging a development application and that’s not strictly the case in other industries – but we’re talking about quite large scale projects here.”

Environmental groups and industry have previously raised concerns the changes would mean renewable projects face stricter standards than some resources projects, particularly as the Queensland government has separately proposed exemptions for new coal mines producing up to 2m a year from having to undertake environmental impact statements.

John Grimes, chief executive of the Smart Energy Council said Australians had made their expectations from the energy transition clear at the recent federal election.

“Australian voters have just overwhelmingly backed a clean and reliable energy future,” Grimes said. “We will work in good faith with the Queensland government to ensure it continues down its decarbonisation path.”

Environmental groups, including the Queensland Conservation Council, have called for better community consultation and assessment of large-scale wind farms, and for solar farms in particular, to be standardised particularly as individual local councils have left to manage with varying levels of expertise to negotiate with companies on new projects.

QCC director Dave Copeman previously warned the LNP government’s handling of the changes could “potentially be a wolf in sheep’s clothing” – a concern that may be inflamed after the LNP government formally announced it would break an election promise to cut funding to the EDO.

Queensland Minister for Environment and Tourism Andrew Powell told a roundtable meeting of 40 environmental groups last Wednesday that the government would break its election commitment despite the promise having been made in writing.

In an email shared with Renew Economy, Sam O’Connor, while serving in opposition as shadow Environment Minister, pledged to continue the EDO’s funding. QCC CEO Dave Copeland also said the Queensland Premier had made a direct promise to him on 29 August 2024 that funding would be maintained.

An open letter signed by representatives from 36 environmental groups sent by the Queensland Conservation Council (QCC) on Thursday called on the Premier to make good on the promise and avoid a repeat of the cuts imposed by former Queensland LNP Premier Campbell Newman.

“By allowing this to happen, the Queensland LNP has reneged on its election promise. If funding is not maintained, thousands of Queenslanders will be denied access to environmental justice, advice, and education,” the letter said.

QCC Deputy Director Anthony Gough said the organisation was hopeful “common sense will prevail” and funding will be restored. The broader environment movement had so far had a good relationship with government and wanted to maintain it, he said.

“Trust is based on keeping the commitments that you’ve made. There were a number of commitments that were made in the lead up to the last election. It’s really disappointing to see this one broken.”

“We want to have a strong and collegial relationship with the government, so we can get the best outcomes for the environment,” he said.

“It’s made a lot harder when promises like this are broken.”

A Queensland government spokesperson said the government had “honoured Labor’s funding agreement in its entirety which expired at the end of June 2025” saying that “there is no additional money budgeted beyond that period of time.”

“As part of future assessments for programs, the EDO would have to convince the Government that proper processes had been put in place to qualify for further funding, after being ordered to pay $9 million in costs after a judge criticised EDO lawyers for coaching a witness,” they said.

A federal court judge in Munkara v Santas NA Barossa Pty Ltd held in January 2024 that consultants for the EDO had engaged in “subtle coaching” of Tiwi Islanders and that evidence from one witness involved “confection”.

Following the decision, Australian Energy Producers, Australia’s oldest and most enduring oil and gas industry association, called for EDO’s funding to be cut saying that “the tax-payer funded environmental lawfare must end” and alleging the EDO was holding Australia’s energy industry “hostage”.

EDO CEO David Morris said the Queensland state government’s decision was a “surprise” as given repeated commitments from the Liberal National government. He said no one from the Queensland government had contacted EDO to raise concerns following Munkara.

“My response is one of disappointment, it’s the first it’s been raised with us,” Morris said. “We’ve taken that case very seriously and we feel confident that we could allay the government’s concerns but they haven’t provided us with the opportunity.”