The government’s principal review and advisory body has published an interim report recommending an overhaul to Australia’s environmental laws aimed at expediting approval of clean energy projects.
As part of a push to boost Australia’s productivity, the Albanese government last year commissioned the Productivity Commission (PC) to compile five interim reports, with each focusing on a particular area of the economy and how best to boost productivity within that sector.
Titled “Investing in Cheaper, Cleaner Energy and the Net Zero Transformation,” the report released on Monday is the second in the series and has identified several barriers to Australia delivering on its net zero ambitions.
As a point of focus for the recent report, the PC investigated Australia’s approval process for clean energy projects, which PC Commissioner Mark Stokie described as “sluggish and uncertain” in a statement released alongside the publication.
“Getting to yes or no quicker on priority projects would meaningfully speed up the clean energy transition,” said Stokie.
Amendments to the EPBC
In order to expedite approvals, the report recommends an overhaul to the Environment Protection and Biodiversity Conservation Act (EPBC) approvals process through the introduction of new clearer standards “as soon as possible.”
Although amendments to the EPBC are already in motion, the PC recommendations focus on making the process clearer and more timely for developers.
“A fundamental challenge [for developers] is that the EPBC does not have clear and enforceable environmental standards,” states the PC within its latest report, often leading to lengthy project delays and contentious final decisions.
Although the PC doesn’t categorically state what standards should be introduced, it does suggest new and clearer assessment frameworks for “matters of national environmental significance, engagement with local communities and Aboriginal and Torres Strait Islander people, regional planning and environmental offsets.”
Through the introduction of new standards, the PC hopes EPBC decisions would become “more consistent and predictable”.
As part of its recommendation to make the EPBC process more transparent, the PC has also called for the increased publication of past assessment decisions, alongside broader access to statements of reasons for decisions.
Change of focus
The recent report also highlights the need for a change in approach to focus on the “highest priority” renewable energy projects.
In March of this year, the government identified a group of 56 projects, made up of transmission infrastructure, 16GW of generation capacity and 6GW of storage capacity, which it has determined as vital in delivering the country’s transition to net zero.
To assist in delivering these high priority projects, the PC recommends the Department of Climate Change, Energy, the Environment and Water (DCCEEW) establish a specialist “strike team” to work exclusively on assessing these developments.
“This will provide priority projects with the attention they need to progress efficiently through the [EPBC] assessment process,” explains the PC within its recent report.
The PC has also suggested the DCCEEW appoint “an independent Clean Energy Coordinator-General” who will be responsible for overseeing the assessment of priority renewable energy projects.
