EPA retreats on carbon but questions remain

Emissions guidelines for a series of Western Australian energy mega projects are still unclear after the Environmental Protection Authority announced it would withdraw its net zero carbon policy, released last week, and head into months of consultation.

Premier Mark McGowan said he spoke to EPA chair Tom Hatton today to express concerns about the new guidelines after meeting with oil and gas industry representatives.

He said Dr Hatton had pledged to withdraw the rules and consult more broadly.

“The guidance that was released last week was not the right way to go,” Mr McGowan said.

“All it would mean is that coal from Queensland and NSW is advantaged against gas from Western Australia, (gas) which would contribute to lower emissions.”

He defended Dr Hatton against questions that his position heading the EPA was untenable, saying his willingness to consult was a good thing.

“Dr Hatton is a good man, and he and I agreed there were some issues,” Mr McGowan said.

Mr McGowan also acknowledged he was briefed on the policy, along with Environment Minister Stephen Dawson, three weeks ago.

That had been a high-level briefing, he said.

The EPA issued a release saying it would talk to industry further.

“It is clear from our consultation there is some uncertainty within industry on the technical aspects and the practical implementation of the guidelines, particularly with respect to offsets,” Dr Hatton said.

“The EPA also appreciates that further discussion is merited to ensure that industry and stakeholders can anticipate how such guidelines can apply to proposals.  

“The EPA does not resile from the need to reduce WA’s greenhouse gas emissions.

“Nor do we resile from our absolute right and obligation to provide advice to the government on these matters.

“However, it is important that the detail of such advice is more fully developed and the practical applications are well understood.”

The EPA decision comes after Woodside Petroleum chief operating officer Meg O’Neill unleashed on the policy at the Australasian Oil & Gas Exhibition and Conference yesterday.

Woodside plans to make final investment decisions on the Browse, Scarborough and Pluto projects next year, with engineering work already under way.

The combined value of the three projects is about $36 billion (see note).

“The biggest (problem) is that it's now created a question for us,” Ms O’Neill said.

“We're in a very fast timeline, and any uncertainty creates risk.

“We are concerned that the state government hasn’t said what they will do instead.

“Every decision is subject to the minister.”

Conservation Council of Western Australia director Piers Versteegen said the oil and gas industry was dictating climate change policy.

Mr Versteegen said the LNG industry was the fastest growing source of carbon emissions in Australia.

"These industries are extremely profitable and they should be paying a price on carbon," he said.

Mr Versteegen said it was a question whether Mr McGowan or the oil and gas industry ran the state.

Shadow environment minister  Dr Steve Thomas said he welcomed the move.

“There were a number of ways for the EPA to progress this debate without creating the level of uncertainty that the proposed guidelines did,” Mr Thomas said.

“By going down the path of releasing a technical guidance document that required the current and every future EPA to recommend to the government a 100 per cent offset plan for every large project, the EPA caused considerable industry and community concern.

“It is of even greater concern to learn that the Premier and Minister for Environment were briefed on this proposal two weeks before it was made public by the EPA.

“This means that for two weeks the premier and minister could have acted to divert the proposal or modify it, but they did nothing until after the 7th of March release, and then seem to have been surprised by the concerns expressed."

Note, 5:58pm March 14: BN incorrectly published a figure of $49 billion, this has been updated.