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2021 to bring major environmental and climate policy changes

Prepare for national biodiversity standards, more federal-state climate change cooperation, and the start of a new law that allows companies to be prosecuted for breaching a general environmental duty.

Biodiversity:

In 2020, the focus has been on devolving EPBC approval powers, with Western Australia lined up to be the first state to gain them.

However, details will emerge next year on new, legally-enforceable national environmental standards that will underpin EPBC decision-making, and a more stringent approach to biodiversity offsetting.

Climate change:

Increasing international pressure to adopt a net-zero by 2050 target is likely to prove irresistible for the Morrison government, and its new long-term emissions strategy due out next year will provide an opportunity to adopt it.

However, that has ramifications for Australia's mid-term target, and will increase pressure for the adoption of a more stringent 2030 goal, or a new, robust 2035 target.

Next year will also see the release of more multi-million dollar bilateral energy and emissions funding and cooperation agreements between the federal government and states and territories, as well as the release of more details of the recent Tasmanian deal.

Victoria will be announcing its interim emissions reduction targets for 2025 and 2030 shortly, and the federal-Victorian deal is likely to be heavily influenced by these targets.

Another issue to watch for is the prospect of states using approvals and licensing to impose offsetting conditions – South Australia has hinted at it, and a recent Clean Energy Regulator policy shift means it can be done using ERF architecture.

Meanwhile, the Morrison government will be ramping up efforts to support voluntary abatement action by business, including large emitters.

That will likely involve the piloting of a King Review-recommended measure awarding some type of credit to Safeguard-covered emitters that cut emissions well below baseline levels.

On the carbon credits supply side, five new ERF methods for earning them are likely to be finalised – dealing with CCS, soil carbon (using new measurement approaches), biomethane/green gas, plantation forestry, and blue (coastal and marine) carbon.

Renewables and the National Electricity Market:

Victoria will hold its next renewables auction, for at least 600MW of new capacity.

On the hydrogen front, ARENA will soon announce winners under its $70 million hydrogen funding round, and Tasmania will reveal recipients of hydrogen grants and loans under its $50 million state scheme.

The mega-clean energy projects that are under development will continue to advance, potentially leading to new supply chain industries – for example local manufacture of hydrolysers and wind towers and turbines for the Asian Renewable Energy Hub.

Final recommendations for the post-2025 NEM will also emerge from the Energy Security Board next year, and could include recommendations on additional measures to manage the exit of coal-fired generators.

Waste, chemicals and pollution:

Environment Minister Sussan Ley will seek to steer through Parliament an industrial chemicals risk bill that will make it possible for Australia to ratify the Minimata Convention on mercury and Stockholm Convention amendments.

The federal government will release a draft plastics plan early next year, and NSW will issue another draft of a state-wide waste plan.

State and territory-level bans on some single-use plastic items will take effect in the ACT, Queensland and South Australia.

The first of the national bans on waste exports kicks in – with exports of unprocessed waste glass prohibited without a permit from January 1.

Next year is also likely to reveal whether waste to energy projects can proceed in NSW, with Cleanaway pursuing approval for a project that would incinerate up to 500,000 tonnes of waste annually and have a capacity to export 55MW to the grid.

General legislative changes:

Victoria's new environmental law, the first in Australia to have a court-enforceable general environmental duty – is expected to come into force on July 1, after a pandemic-related delay.

NSW is embarking on major changes to its planning approval regime, including an accreditation system for environmental specialists. In future, environmental impact statements for major projects will require certification by an accredited specialist.

Footprint is taking a break for the Christmas and New Year holidays, and will resume publishing in mid-January.

We wish all readers a very happy Christmas, and a healthy, safe and successful New Year.

Our office will be staffed intermittently over the holidays and can be reached on (02) 9267 3800.

Thanks for your support, tips, news, and comments, which have been particularly important over the past year. We look forward to bringing you all the crucial carbon and sustainability news in 2021.

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