The Productivity Commission (PC) has released an interim report advocating for significant changes to Australia’s environmental laws to accelerate the approval process for renewable energy projects. This report, titled “Investing in Cheaper, Cleaner Energy and the Net Zero Transformation,” is part of a broader initiative by the Albanese government aimed at enhancing productivity across various sectors of the economy.
As part of this push, the PC was tasked with producing five interim reports, each addressing specific areas that could benefit from increased productivity. The second report, made public on March 13, 2023, identifies critical barriers hindering Australia’s ability to meet its net zero goals. It underscores the need to streamline the approval process for clean energy initiatives, which has been described by PC Commissioner Mark Stokie as “sluggish and uncertain.”
Stokie emphasized that expediting decisions on priority projects is essential for advancing the clean energy transition. The report specifically calls for a comprehensive reform of the Environment Protection and Biodiversity Conservation Act (EPBC) to introduce clearer standards and expedite approvals “as soon as possible.” Although amendments to the EPBC are currently underway, the report highlights the necessity for a more transparent and timely process for developers.
A significant concern noted in the report is the lack of clear and enforceable environmental standards within the EPBC, which often results in protracted project delays and contentious outcomes. While the PC does not specify what new standards should be instituted, it recommends clearer assessment frameworks focused on several key areas. These include “matters of national environmental significance,” engagement with local communities and Aboriginal and Torres Strait Islander people, and provisions for regional planning and environmental offsets.
The introduction of these standards aims to make EPBC decisions “more consistent and predictable,” facilitating a smoother approval process for renewable energy projects.
Focus on Priority Renewable Energy Projects
The report also stresses the importance of prioritizing renewable energy projects deemed critical to achieving net zero targets. Earlier in March 2023, the government identified a list of 56 projects, which encompass transmission infrastructure, 16GW of generation capacity, and 6GW of storage capacity. These projects have been classified as essential for facilitating Australia’s energy transition.
To support these priority projects, the PC recommends that the Department of Climate Change, Energy, the Environment and Water (DCCEEW) establish a specialized “strike team” dedicated to assessing these developments. This initiative aims to ensure that priority projects receive the necessary attention and resources to navigate the EPBC assessment process efficiently.
Additionally, the PC has proposed the appointment of an independent Clean Energy Coordinator-General, responsible for overseeing the assessment of these priority renewable energy projects. This role would provide a centralized point of oversight to enhance the efficiency and effectiveness of the approvals process.
The Productivity Commission’s interim report signals a critical step toward addressing the systemic challenges within Australia’s environmental approval framework. By streamlining processes and focusing on high-priority projects, the government aims to foster a more robust transition to renewable energy, which is essential for meeting national and global climate commitments.
