Greenhouse Gas Emissions Policy for Major Projects

The Greenhouse Gas Emissions Policy for Major Projects was published in August 2019 and outlined the State Government’s expectations for proposals assessed under Part IV of the Environmental Protection Act 1986 (EP Act) that meet the definition of a designated large facility to contribute to achieving the State Government’s target of net zero emissions by 2050.

The Commonwealth Government’s reforms to the Safeguard Mechanism, which passed Federal Parliament on 30 March 2023, establish a nationally consistent approach to reducing greenhouse gas emissions for Australia’s largest emitters, imposing declining baselines on covered facilities, known as designated large facilities.

Setting duplicate greenhouse gas limits at the state level on proposals regulated under the Safeguard Mechanism creates confusion for proponents and administrative burden for regulators without delivering any additional environmental benefit.

This policy change is focused on removing duplication and does not change Western Australia’s commitment to working with all sectors of the economy to achieve net zero greenhouse gas emissions by 2050.

This policy does not impact upon the independence of the Environmental Protection Authority (EPA) to identify and consider key environmental factors as part of its statutory assessment functions in a manner it considers appropriate.

The Safeguard Mechanism applies to most facilities with direct emissions over 100,000 tonnes carbon dioxide equivalent per annum (scope 1 emissions), including those from the mining, oil and gas production, electricity generation, manufacturing, transport and waste sectors.

Reforms to the Safeguard Mechanism set legislated limits on the emissions of designated large facilities, requiring emissions to decline predictably and gradually on a trajectory consistent with achieving Australia’s emission reduction targets of 43 per cent below 2005 levels by 2030 and net zero by 2050.

New facilities will receive more stringent baselines based on best practice emissions intensity values, ensuring that new facilities are built with the best available technology. 

Yes. Cumulatively the Safeguard Mechanism is expected to deliver outcomes consistent with those achieved through the State Government’s approach to emissions reduction through conditions currently applied under Part IV of the EP Act. 

The State Government commissioned the Vogel-McFerran Review in 2023 to carry out a review of Western Australia’s environmental approvals system, focusing on measures for streamlining, including removal of duplication and reducing timeframes while continuing to deliver robust protections for the environment.

The review recommended that the EPA should limit its assessment of projects and proposals subject to the Commonwealth Safeguard Mechanism to meeting its statutory responsibilities and avoid unnecessary duplication.

This policy supports implementation of the review recommendations by avoiding duplicate limits on greenhouse gas emissions covered by the Safeguard Mechanism. This will reduce administrative burden for proponents and the regulator while maintaining robust limits on greenhouse gas emissions from relevant proposals through Commonwealth law.

A number of Australian jurisdictions are seeking to avoid duplicative targets for greenhouse gas emissions that are covered by the Safeguard Mechanism.

Western Australia’s approach supports the cooperative achievement of state and national goals for decarbonisation while avoiding regulatory duplication. 

The policy recognises that historically there has been uncertainty around Commonwealth regulation of greenhouse gas emissions.

The Government supports requirements for proponents subject to declining baselines under the Safeguard Mechanism to notify the State Government in the event of a substantial change to their obligations under this scheme.

This will facilitate application or reimposition of suitable state-imposed limits on greenhouse gas emissions, if regulation changes at the Commonwealth level.

The State Government considers that duplicate greenhouse gas limits create confusion for proponents and administrative burden for regulators without delivering any additional environmental benefit.

The State Government will initiate a review of existing Ministerial statements under section 46 of the EP Act to align requirements with the amended policy. 

The policy does not impact on State Government action to decarbonise the Western Australian economy. The State Government has committed to working with all sectors of the economy to achieve net zero emissions by 2050 and is legislating this target to support policy certainty and enhance business confidence.

The State Government is taking steps to substantially decarbonise the state’s main electricity grid through delivery of the first stage of network investments identified in the South West Interconnected System (SWIS) Demand Assessment. The State Government is also implementing key initiatives under the Sectoral Emissions Reduction Strategy to reduce emissions across all sectors of the economy.

The Safeguard Mechanism is delivering a nationally consistent approach to emissions reduction. The Commonwealth scheme will deliver significant reductions in emissions from covered facilities from business-as-usual levels and support achievement of state targets, including future targets to be set under the Climate Change Bill 2023, once enacted. 

The EPA will consider the State Government’s updated Greenhouse Gas Emissions Policy for Major Projects and continue to give consideration to practicable mechanisms to reduce the overlap and avoid duplication with existing frameworks for proposals considered under Part IV of the EP Act.

The EPA will have regard to the State Government’s policy in identifying and considering key environmental factors as part of its statutory assessment functions under the EP Act.