Labor’s green tape laws on ‘life support’, Ley says, as Coalition split on net zero looms
The Coalition’s fight with Labor on green tape laws came as a Nationals MP delivers a fresh headache for Sussan Ley by raising the prospect of the Coalition splitting over net zero.
Labor’s plan to strike a deal with the Coalition on environmental laws is on “life support” after rejecting a proposal to split the bill and bring on an immediate vote to streamline approvals, as a Nationals MP delivers a fresh headache for Sussan Ley by raising the prospect of the Coalition splitting over net zero.
Environment Minister Murray Watt said he would not consider a Coalition request to split the environmental components of the bill from the sections that allow for faster approvals.
The request, coming through a letter from the Opposition Leader and her environment spokeswoman, Angie Bell, would have allowed for fast passage through parliament of streamlined approvals, while delaying protections for the environment.
“Splitting the bill would weaken environmental protections and would remove the certainty that business is looking for,” Senator Watt said.
“It would mean more habitat destruction, more species threatened, no independent regulator and slower approval times.”
Responding to Senator Watt, a Coalition spokesman said “Labor’s reckless decision to prioritise the interests of green groups over jobs and productivity puts reform on life support”.
The stoush over splitting the bill came despite Labor considering amendments in an aim to win over industry and the Coalition, including the potential to offer developers the right to appeal stop-work orders.
With environment and climate issues to dominate parliament this week, Nationals MP Llew O’Brien said he did not see how the Coalition could function if the Liberals retained an aspiration to meet net zero, as is expected.
With the Nationals partyroom to discuss its position on net zero on Monday ahead of broader discussions within the Coalition throughout the week, the Wide Bay MP said he was increasingly confident the regional party would unequivocally oppose a mid-century target.
“While I know there are people in the Liberal Party who are vehemently opposed to this net-zero madness, I suspect that when it comes to the Liberals the numbers will fall on the side of adopting a watered-down version,” Mr O’Brien told The Australian.
“If the Nationals reject net zero absolutely, as I suspect we will, I just can’t see how a Coalition with such different positions on a fundamental policy like net zero could continue to function.”
Nationals MP Barnaby Joyce – who is considering defecting to One Nation – is blaming net zero for refusing to sit in partyroom meetings this week, although he will remain seated with the Coalition in parliament.
The Australian reported last week that senior Liberals were discussing a climate policy that would see the opposition vow to repeal Australia’s net zero by 2050 laws but retain the commitment under the Paris Agreement, in an aim to strike a deal with the Nationals and keep the Coalition united.
Allies of Ms Ley have told The Australian there was no serious consideration being given to leaving Paris or completely dumping net zero, but Liberal senator Sarah Henderson said the aspiration should be completely jettisoned.
“Net zero is driving up power prices, destabilising our energy grid and making no difference to global emissions,” she said.
Several other Liberal MPs have told The Australian they would not support any aspiration to hit net zero, even if domestic laws on achieving the goal by 2050 were gutted.
With the Prime Minister overseas at ASEAN when parliament returns on Monday, Labor is proposing reforms to the Environment Protection and Biodiversity Conservation Act in an aim to expedite approvals of major projects.
The Environmental Protection Reform Bill will be introduced to parliament later in the week, with Labor keeping open the option of striking a deal with the Greens in a move that would make the package worse for industry.
With Labor sources saying getting industry on board is crucial to putting pressure on the Coalition to back the bill, The Australian understands Senator Watt is willing to consider several amendments to the draft that have worried business figures.
These include allowing businesses to appeal an immediate “stop-work order” if it was deemed a developer was damaging the environment.
The Australian has also been told the government would consider revamping a provision in the draft bill that allows for a quick rejection of an application that is deemed to have “unacceptable” impact on the environment, amid industry concerns the threshold is too subjective.
While industry and the Coalition have raised the alarm about major projects being forced to submit plans to lower carbon emissions in line with Labor’s targets, sources said the government is less likely to negotiate on this.
A report by the Business Council of Australia, to be released on Monday, will say reforms to the EPBC Act are needed to build more homes, expand the critical minerals sector and attract investment in major projects.
BCA chief executive Bran Black said reforming red and green tape was needed to “build the foundations for the next generation of growth”.
“Whether it’s housing, renewable energy, health and care services or technology infrastructure, the EPBC system is delaying investment into projects we need for the future,” Mr Black said.
The bill proposed by Senator Watt will establish an independent National Environmental Protection Agency to enforce compliance while the final decision making will be in the hands of the minister.
The package will pave the way for cutting approval duplication between state and federal governments under new national guidelines to be finalised within 12 months.
“There are huge things in this bill for business,” Senator Watt told Sky News.
“Currently, if someone wants to do a housing development or a wind farm or some other project, a mine, they need to go through a state government process, only to have the same thing happen all over again at the federal level.
“And what we want to be able to do is cut that back to one process where people do have to meet national environmental standards, and shave months and years off the approval process.”
In a letter to Anthony Albanese and Mr Watt, Ms Ley said the part of the bill that streamlined approvals and removed state and federal duplication should be prioritised.
“While the streamlining reforms still require detailed amendment to ensure they function effectively, separating them from the broader, more contentious environmental elements of the legislation would allow parliament to make immediate progress on areas that can genuinely help unlock investment and growth,” the letter said.

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