A stand-off over environment laws will shape the final week of the parliamentary year, as Labor continues to insist it will deal with either the Coalition or the Greens to pass the new measures.
Environment Minister Murray Watt declared on Sunday that it was a case of “now or never” for his bill, which he says will bolster the protection of natural landscapes and wildlife while also streamlining the assessment of large construction projects.Â
The federal government has spent three years trying to bridge the gap between business and environment groups and deliver a long-awaited update to a system most agree is broken, failing to protect nature while also creating lengthy delays for developers.
Senator Watt said he had offered concessions to both the opposition and the crossbench over the weekend.
“I think we’re very close. I had some further meetings and discussions with both the Coalition and the Greens over the weekend and that has definitely narrowed the issues,” he told ABC Radio National.
“I’m very confident that we’ll pass the laws. It’s less clear who they’ll be with … I am prepared to compromise a little bit more on either side to get this through as long as we don’t get rid of [the] core principles.”
The offer to the Greens is to apply national standards to forest logging applications instead of leaving them to the states. That falls short of Greens’ calls to ban native forest logging, but Sarah Hanson-Young reserved her position on Sunday.
Labor offers deal on EPBC laws
The Coalition issued its demands last week, asking to water down the powers of the new environmental agency, scrap emissions reporting requirements, and clarify the minister’s power to refuse applications with “unacceptable” environmental harms.
Opposition Leader Sussan Ley said she would be “constructive” but that Labor should not “rush to failure” and that she was unafraid to send the bill through a months-long committee process.
“It’s not our job to make a bad bill less bad … If Labor wants to rush, that is their choice,” she said on Friday.
The Coalition’s environment spokesperson, Angie Bell, told ABC Radio National it was up to the government to respond to the demands.
“It’s important that we deliver a constructive way forward on environment reforms because they’re too important to get wrong … The ball is in the minister’s court,” she said.
Labor open to move on some Coalition demands
Senator Watt has signalled Labor will not offer the Coalition all it wants, but that he would move on at least some items. A government source told the ABC that Labor was reluctant to weaken the environmental agency, given many of its MPs campaigned on that issue.
Ms Bell said retaining the power for the environment minister to sack the agency’s chief executive was a key issue.
It is also reluctant to scrap climate reporting for large emitters, which does not have any bearing on the applications but is framed as a transparency measure. Labor argues that heavy industry already faces similar requirements under its safeguard mechanism.
Treasurer Jim Chalmers last week said he would prefer to deal with the opposition as an alternative party of government, reflecting the risk of further uncertainty for businesses if the Coalition vows to unwind a Labor-Greens deal.
Businesses urge parties to ‘work together’
But the Greens offer, which Senator Watt said he had spoken to the forestry industry about, is regarded as a genuine one, and some in the minor party are sensitive to perceptions they were too obstructive in the last parliament.
Several sources involved in negotiations said they believed Senator Hanson-Young was eager for a deal but may struggle to win over colleagues, with the Tasmanian contingent among those more sceptical of the bill.
The Greens also want the removal of a longstanding exemption for land-clearing on private land that was already underway before the initial bill was passed in 1999.
On Sunday, Senator Watt warned the Greens not to “let the perfect be the enemy of the good”, while also telling the Coalition to “put [their] leadership battles to the side to focus on the needs of the country”.
Ms Ley’s willingness to delay reflects her own pressures within the party room and from Nationals MPs who have already publicly questioned the need to rush.
Conservative Jonathon Duniam, who held the environment portfolio under Peter Dutton, has been involved in negotiations in recent days alongside Ms Bell, but a deal could be derailed by others in the party room or by the junior Coalition partner.
Conservative Jonathon Duniam (right) has been involved in negotiations under Sussan Ley, having previously held the environment portfolio. (ABC News: Ian Cutmore)
Ms Bell said the bill was “completely unworkable” as proposed and “would send productivity backwards”. Liberals argue that the definition of “unacceptable” environmental harms is convoluted and would constrain development.
Chalmers takes up net zero debate
Passage of the bill is Labor’s main priority for the final week of the sitting year, as it also ramps up its attack on the Coalition for dumping net zero.
Mr Chalmers last week cited modelling from renewables investors suggesting power bills would be 22 per cent more expensive if there was no renewable energy, and on Sunday night warned abandoning net zero would threaten critical minerals projects.
“Abandoning net zero would swing a wrecking ball through the energy market, through investor certainty, and put billions of dollars of critical minerals projects at risk,” he said.
Chris Bowen is preparing to lead climate negotiations ahead of COP31, while Jim Chalmers has been prosecuting the domestic argument over net zero and power prices. (AAP: Dan Himbrechts)
Liberal Senator James Paterson said on Sunday he believed his party had reached “a very strong position on net zero” and continued the opposition’s attack on Climate Change and Energy Minister Chris Bowen for taking the lead of negotiations ahead of next year’s COP31, which Australia has ceded to Türkiye.
“He wants to be on the international circuit; he wants to be hobnobbing and negotiating at climate conferences. He has no interest in lowering energy prices for Australians,” Senator Paterson said.
Mr Bowen made two appearances in Brazil over the weekend with his Turkish counterpart and with Pacific ministers to promote the sharing arrangement for the COP, flagging substantial work ahead after COP30.
“This won’t be an easy negotiation, COP31. No-one should pretend it will be. In one way, that’s why I’m looking forward to it so much,” he told reporters in Belem.