Draft revised Environmental Factor Guideline – Greenhouse Gas Emissions released today

The Environmental Protection Authority (EPA) has reviewed its greenhouse gas assessment guidance and has today published a Draft Environmental Factor Guideline – Greenhouse Gas Emissions (draft EFG GHG).

The EFG GHG was first published in April 2020, subject to review after 2 years. The purpose of the EFG GHG is to communicate how GHG emissions are considered by the EPA in the Western Australian environmental impact assessment (EIA) process. Since the guideline was first published, greenhouse gas emissions from nine significant proposals have been assessed and conditions imposed to require proponents to achieve net zero by 2050 or earlier.

The review addresses a range of issues considered by the EPA in implementation of the guidelines and to reflect contemporary practices.

Key changes

Key changes proposed include:

• The factor objective “To minimise the risk of environmental harm associated with climate change by reducing greenhouse gas emissions as far as practicable.” The existing guidance has the objective “To reduce net greenhouse gas emissions in order to minimise the risk of environmental harm associated with climate change.”
• Proposals will be considered in respect to both scope 1 and scope 2 emissions where reasonably likely to exceed: 100,000 tonnes CO2-e of scope 1 emissions in any year; or 100,000 tonnes CO2-e of scope 2 emissions in any year. The existing guidance refers to scope 1 emissions of more than 100,000 tonnes each year.
• Express reference to the inappropriateness of making separate referrals to avoid consideration of GHG emissions.
• The EPA’s view is that there should be ‘deep and substantial reductions’ in WA’s emissions this decade and achievement of net zero by 2050, along a linear trajectory from 2030. This position is stronger than the current guidance, which requires proponents to contribute to the State’s aspirations of net zero by 2050.
• The EPA will have regard to its guideline when considering new proposals, changes to existing proposals (including expansions) and, now additionally, changes to existing implementation conditions.
• The Guideline also provides that the EPA may take other laws and statutory decision-making processes into account that can mitigate the potential impacts on the environment when deciding whether to assess a proposal or recommend conditions. This is reflecting recent amendments to the Environmental Protection Act 1986 (WA) (EP Act).
• Other decision-makers under the EP Act (including s.45C and s.46) and other legislation are encouraged to have regard to the guideline.

Generally, the draft GHG EFG is more prescriptive about the contents of greenhouse gas management plans submitted by proponents. Proponents are currently expected to take best practice measures to avoid and reduce their scope 1 emissions. The draft guidance now includes peer or expert review in this regard. Aligned with the extended application of the draft GHG EFG noted above, proponents will also be expected to take all reasonably practicable steps to reduce their scope 2 emissions, and consider what measures they can take to reduce scope 3 emissions. Offsetting of emissions (carbon offsets) are identified as considerations of last resort.

The proposed changes largely codify existing practice and the EPA’s policy direction which we have observed since the release of the initial EFG GHG in 2020.

Consultation period

The draft EFG GHG is available for an 8-week public consultation period. The online consultation link is available here.

The consultation period will end on 21 September 2022.

HSF has much experience advising on the current GHG EFG and its implementation since 2020. Please contact us if you have any queries or want to know more about the implications of the proposed changes to the GHG EFG for your business.