Politics · Australia · 3 hrs ago
Climate Council urges stricter rules for expanding coal and gas projects
Australia’s Safeguard Mechanism requires about 200 of the country’s biggest polluters, including coal and gas mines, to cut or offset emissions by about 5 per cent a year.
New mines must meet stricter limits based on the best available technology, but existing mines do not have to meet those limits when they expand or extend their operating lives.
The Climate Council says this difference lets companies add emissions while treating projects as existing facilities.
It estimates the approach could add 4.5 million tonnes of CO2 a year by 2035.
The council says more than three quarters of new coal development since the rules changed in 2022 has involved expansions or extensions.
One example is a Hunter Valley mine extension approved by New South Wales’ Independent Planning Commission, which said its climate impact was outweighed by benefits including local jobs and tax revenue.
The Safeguard Mechanism is under review, and the government is due to decide next year whether to set a steeper path towards net zero emissions by 2050.
The Climate Council is urging Australia to apply stricter emissions limits to coal and gas mine expansions as well as to new projects.
It says treating expansions as existing facilities creates a loophole that could add 4.5 million tonnes of CO2 a year by 2035.
Reputex modelling estimates 22 planned expansions and extensions could emit 11 times more under existing-facility rules than under rules for new facilities.
The Safeguard Mechanism, which covers about 200 of Australia’s biggest polluters, is under review.
The NSW Independent Planning Commission approved a Hunter Valley coal mine extension, saying its benefits outweighed its contribution to climate change and Australia’s emissions.
- Who
- The Climate Council is calling for stricter rules. The Safeguard Mechanism covers coal and gas mines among about 200 facilities.
- What
- The council wants best-practice emissions limits applied to new coal and gas emissions from both new projects and expansions.
- When
- The Safeguard Mechanism is due to be revisited next year.
- Where
- Australia, including a coal mine in the Hunter Valley, New South Wales.
- Why
- The council says expansions can avoid stricter limits for new facilities, leading to higher emissions.
Climate Council
NSW Independent Planning Commission
Climate impact
Climate Council
The council says mine expansions should face the same best-practice limits as new projects.
NSW Independent Planning Commission
The commission said the mine extension would contribute to climate change and add to Australia’s emissions.
Reasons for the decision
Climate Council
The council says the emissions from expansions should not receive less stringent treatment.
NSW Independent Planning Commission
The commission said the climate impact was outweighed by benefits including up to 1,400 local jobs and ongoing tax revenue.
The Safeguard Mechanism laws were amended.
Approval was given for an extension of a Hunter Valley open-cut coal mine owned by Yancoal and Glencore.
ABC Australia published the report on the Climate Council’s call for stricter rules.
The Safeguard Mechanism is due to be revisited, with the government to decide whether to set a steeper trajectory towards net zero emissions by 2050.
- Safeguard Mechanism coverage
- About 200 facilities
- Projected additional emissions
- 4.5 million tonnes of CO2 a year by 2035
- Planned expansions and extensions modelled
- 22 over the next decade
- Hunter Valley mine extension
- Additional $2.7 billion capital investment
- Estimated added emissions from extension
- 809 megatonnes of CO2
- Potential local jobs supported
- Up to 1,400
What people are saying
Companies have an incentive to characterise everything as an expansion rather than a new facility
We're arguing that is one of the loopholes that needs to be shut.
Despite these new investments being significant enough to require a new environmental approval, the vast majority of their pollution will not be considered 'new' by the Safeguard Mechanism
Sources
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