The Albanese government is set to introduce a series of landmark reforms aimed at stripping companies of any financial gains derived from violating environmental laws. This ambitious legislative package is expected to be presented to the Australian parliament within the next two weeks, marking a significant shift in the country’s approach to environmental protection.
In an exclusive interview with Guardian Australia, Environment Minister Murray Watt disclosed his intention to incorporate a clear definition of “unacceptable impact” into the nation’s new environmental laws. This move is designed to safeguard critical areas and prevent businesses from investing in projects unlikely to gain approval.
Defining Unacceptable Impact
Watt emphasized the importance of establishing a “clear, strong definition of an unacceptable impact” following consultations with environmental groups and industry stakeholders. This definition is expected to streamline the approval process by clearly outlining which projects are viable, thus saving businesses time and resources.
Despite progress, Watt acknowledged that several contentious issues remain unresolved, including the legislation’s approach to climate change and the specific responsibilities of a proposed independent environmental watchdog. However, he expressed optimism that the laws would be enacted before Christmas, indicating a willingness to negotiate with both the Coalition and the Greens to secure the necessary support.
Increased Penalties and New Enforcement Powers
On Tuesday, Watt announced that the proposed reforms would significantly increase penalties for environmental law violations. A new rule would empower authorities to confiscate any financial advantages gained by offenders, with penalties for serious breaches set at $1.6 million for individuals and up to $825 million for businesses. Additionally, a new “civil penalty formula” would be implemented to recover any income gained through illegal activities.
The reforms also propose the establishment of a new Environmental Protection Authority (EPA) with the authority to issue “stop work orders” to prevent environmental harm. Watt is expected to formally announce these provisions on Wednesday.
Decision-Making and National Standards
Another critical aspect of the proposed reforms is the decision-making process for major projects. While it remains undecided whether a minister will retain the final say, there is speculation that this responsibility could be transferred to the new independent EPA. This uncertainty follows reports suggesting that Watt would continue as the key decision-maker.
Nearly five years ago, a review of the Environmental Protection and Biodiversity Act highlighted the inadequacies of existing laws in protecting habitats and species. A key recommendation from the review was the establishment of national environmental standards. Although these standards will not be finalized until next year, Watt assured that the legislation would include a “non-regression clause” to prevent any weakening of standards over time.
Offsetting and Stakeholder Engagement
The legislation will also mandate that projects demonstrate a “net gain” for the environment, potentially through offsets. Watt explained that there would be a legal requirement for project proponents to avoid or mitigate environmental damage before considering offsets.
Since assuming the role of environment minister in May, Watt has conducted over 80 meetings with industry representatives, environmental groups, and other stakeholders to discuss the reforms. He described the task as the most challenging of his ministerial career but expressed hope that the extensive consultations would facilitate compromise and agreement as final negotiations commence.
“Anyone who’s got an interest in this legislation does want it to be enduring, and they realize this is the one chance we’re probably going to have, maybe for a generation, to solve these issues and to get these reforms in place,” Watt stated.
He further noted that most stakeholders recognize the benefits of securing most of their objectives rather than facing the alternative of retaining the current, widely criticized laws.
As the Australian government prepares to introduce these transformative environmental reforms, the coming weeks will be crucial in determining the future of the nation’s environmental policy. The outcome of these legislative efforts could set a precedent for how Australia addresses environmental challenges in the years to come.
