NT government abandoned net zero gas requirements after industry objected, documents reveal

The NT government walked back from requiring net zero emissions for new gas projects after objections from companies who told them ‘emissions could go up’ with that policy.

The Northern Territory Government abandoned a proposal to require net zero emissions targets from new onshore gas developments after the industry protested, government emails have revealed.

Documents released under freedom of information laws show then Climate Change Minister Lauren Moss contacted several fossil fuel giants to ask what a commitment to meet recommendation 9.8 from the Pepper inquiry would mean for their proposed projects.

While never announced publicly, correspondence between gas companies and the Environment Department in October last year shows before the consultation the government had “provided in-principle support to a policy approach that would require interest holders to to achieve net zero greenhouse gas emissions for all upstream onshore shale gas production activities in the Territory”.

Companies including Santos, Inpex, Empire Energy, Hancock Prospecting and Top End Energy raised strong objections.

The freedom of information documents - seen by this publication - do not show consultation with any other stakeholders over the four month period captured.

Emails released under freedom of information showed the government walked back from net zero requirements after strong objections from the gas industry.

Santos said it held a “strong belief” the best way to reach net zero emissions by 2050 was “to allow industry to find the best way to decarbonise their businesses”.

It suggested “net-zero Beetaloo emissions could result in global emissions going up”.

“Without this gas, producers in Russia and the Middle East will step in to fill the gas supply gap in Asia. Australia may also have to import gas,” the letter said.

It said a net zero requirement “may result in high-cost or inefficient abatements to be sought, which would increase the costs of onshore shale gas production in disproportion to other investment opportunities for Santos”.

Inpex raised concerns about net zero requirements for specific gas activities setting a “potential precedent” for other industries.

It also detailed concerns about overlap with Commonwealth emissions requirements under the safeguard mechanism.

Kirsty Howey from the Environment Centre NT described the revelations as a ‘complete breach of trust’. Picture: Glenn Campbell

Environment Centre NT was scathing of the revelations, executive director Kirsty Howey saying “Territorians should feel betrayed by this complete breach of trust”.

“Climate change threatens the liveability of the NT, but instead of acting on it to protect our future, our politicians are doing secret deals with the gas industry on climate policy,” she said.

Climate Change Minister Kate Worden said several different stakeholders were consulted. Photo by PEMA TAMANG PAKHRIN

Climate Change Minister Kate Worden said it “would be misleading to suggest a single viewpoint was considered in the development of the NT’s policy on the Management of Greenhouse Gas Emissions from the Onshore Gas Industry”.

She said the government consulted with industry and considered the views of other stakeholders - including environment groups and Land Councils - “which were well documented and known through recent consultation on other policies”.

Ms Worden said the Territory government had also considered the federal government’s safeguard mechanism policy when developing its position and “the NT policy was set up to complement the requirements of the Australian Government, not to replicate it”.

“Combined, the NT policy and Australian Government’s safeguard mechanism set a higher regulatory bar for greenhouse gas emissions management from this industry than other Australian jurisdictions,” she said.