Australian Budget 2024-25 – Key Insights for Nature Conservation and the Nature Positive Plan
25th July 2024
Contents
- Nature Positive Plan
- Stages of the Nature Reforms
- Four Key Budget Takeaways
- Budget Allocations in Detail
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Nature loss, alongside climate change, presents an unprecedented challenge. Amid ongoing reports highlighting the critical state of nature and stalled federal nature reforms, this article unpacks what to expect from this year’s federal budget and examines what measures the government is taking to address and mitigate the threat to nature with its new reforms and funding. We explore the main pillars of the Nature Positive Plan, including reforms to the Environmental Protection and Biodiversity Conservation (EPBC) Act, and key budget allocations focused on biodiversity protection, habitat restoration, and climate resilience. Additionally, we highlight areas with increased funding for conservation projects, new regulatory frameworks, and enhanced community engagement.
Nature Positive Plan
The Australian Government has committed to:
- Protecting 30% of Australia’s land and seas by 2030
- Creating a Nature Repair Market
- Establishing an independent Environment Protection Agency (EPA)
- Working in partnership with First Nations people, including to develop standalone cultural heritage legislation
- Working towards zero new extinctions.
The Nature Positive Plan, launched in 2022, sets out the government’s commitment to reform Australia’s environmental laws to better protect, restore and manage our unique environment. This plan is the government’s response to the State of the Environment report and Independent Review of the EPBC Act.
Three main themes of the Nature Positive Plan include:
1. Better environment and heritage outcomes
The national environmental law reforms aim to establish National Environmental Standards.
The Standards will enhance conservation planning and efficiency and prioritise First Nations engagement through the National Agreement on Closing the Gap and the EPBC Act’s Indigenous Advisory Committee and standalone First Nations cultural heritage protection laws.
As part of the new standards, climate considerations in planning and approvals will require disclosure of scope 1 and 2 emissions and alignment with national and international reduction obligations.
The reforms also propose expanding the water trigger (that requires federal assessment and approval for coal seam gas and large coal mining developments that are likely to have a significant impact on water resources) to include all unconventional gas forms. They also advocate for a uniform national approach to regulations protecting the environment and community from the nuclear industry.
2. Faster, better decision-making and clear priorities
The National Environmental Standards will also provide transparency, streamline processes, and support faster decision-making.
Regional plans will be developed to pre-identify areas for protection, restoration, and sustainable development, ensuring that biodiversity targets and Matters of National Environmental Significance (MNES) are met.
The Standards will focus on environmental offsets, prioritising avoidance and mitigation before resorting to offsets and conservation payments to achieve a net positive outcome.
Additionally, the establishment of the voluntary Nature Repair Market, supported by legislation, will ensure consistent measuring, monitoring, and verification.
Lastly, National Environmental Standards for Regional Forest Agreements will harmonise ongoing operations with stronger environmental protection measures.
3. Accountability and trust
An Independent Environment Protection Agency (EPA) will be established alongside a Data Division within the Department of Climate Change, Energy, the Environment and Water (DCCEEW), which will have a legislative mandate to provide environmental data to the EPA, the minister, and the general public.
This initiative ensures the provision of publicly available, transparent, and accessible data, creating pathways for the public to bring legal claims against decisions made by the EPA or the Minister.
Stages of the Nature Reforms
The Samuel Review recommended a staged process to reform, highlighting that the National Environmental Standards should be prioritised first and for all reforms to be complete within two years.
As such, the Government announced a three-stage process to deliver on the Nature Positive Plan which sees the more substantive National Environmental Standards occurring last.
The three nature reform stages and progress are:
- Establishing the Nature Repair Market (a component of the Faster, better decision-making and clear priorities objective of the Nature Positive Plan) and expanding the water trigger (a component of Better environment and heritage objective of the Nature Positive Plan). This stage is marked as complete, noting that the Nature Repair Market is still undergoing development of necessary governance and methods.
- Establishing the EPA and the Head of Environment Information Australia (EIA). This addresses the third key item identified in the NPP to improve accountability and trust. Legislation has been brought to Parliament recently.
- Encompasses all other reforms identified in the Nature Positive Plan. While consultations on the law reforms began in October 2023, a recent statement identifies that Stage 3 will focus on further consultation on six key issues.
- Assessment and approvals system
- Restoration Contributions
- Standard for First Nations Engagement and Participation in Decision-making
- Regional Forest Agreements
- Exemptions (prior authorisation and continuing use)
- Climate Change
Following the consultations, a comprehensive exposure draft of the new laws will be released for public consultation, before its introduction to Parliament. If passed, the National Environmental Standards can be developed. No timeframe has been provided on this Stage 3 process.
Four Key Takeaways for Nature in the Australian Budget 2024-25
- Stage 1 of the Nature Positive Plan has been highlighted as complete. However, the governance and operation of the Nature Repair Market still has a way to go and is expected in the next few years.
- Stage 2 draft legislation for the EPA and EIA has been presented to Parliament. Outcomes from Stage 2 may require organisations to improve governance and compliance management systems and controls.
- The most vital aspect of the Nature Positive Plan, the national environmental law reforms recommended in the 2020 Samuel Review of the EPBC Act, has been prioritised last by the government. There is no timeline for when we can expect outcomes from Stage 3 of the Nature Positive Plan.
- With a high focus on the net zero transition, including the development of renewable energy projects and mining for critical resources for clean technology, there is growing concern that fast-tracking approvals will have negative impacts on nature given the delay of Stage 3.
Australian businesses should take a proactive stance in assessing and managing their nature risks, explore investment opportunities in the Nature Repair Market, enhance governance and compliance systems, and consider starting to measure natural capital. By doing so, they can navigate the evolving regulatory landscape, manage risk and discover opportunities while contributing to the restoration of nature.
Nature Budget Allocations in Detail
Establishing the EPA and EIA
In the 2023–24 Budget, the government committed $121 million to establish EPA and $51.5 million to establish the EIA. That’s a total of $172.1 million for the completion of Stage 2 of the Nature Positive reforms.
“The Government is providing $96.6 million over four years to support timely environmental approval decisions by providing more support for project assessments, better planning in priority regions and more funding for threatened species research…these measures support the recently announced second stage of the Government’s Nature Positive Plan.”
Given the uncertain timeframe to deliver on improved national environmental legislation, approvals for projects will be fast-tracked under laws that are ineffective at protecting nature and heritage.
Further, the laws for Stage 2 are likely to alter processes for applications, compliance and treatment of non-compliance (e.g., ‘stop work’ orders) making it essential for organisations to have strong governance and compliance management systems and controls.
Nature Positive Plan and Circular Economy
A further $40.9 million for 2024-25 has been allocated to the Nature Positive Plan over two years which includes the additional work required to establish the Nature Repair Market (Stage 1). However, the wording in the draft budget indicates that over half of that budget is allocated to transitioning Australia to a circular economy:
The Government is providing $40.9 million over two years to continue implementation of the Nature Positive Plan and establishing the Nature Repair Market. This Budget also provides $23.0 million to continue transitioning to a circular economy in Australia.
While a circular economy is not part of the Nature Positive Plan, it should encourage less exploitation of virgin raw materials and thus negative impacts on nature.
Extending from the above commitment, $364.5 million has been proposed over six years to be allocated across the Nature Positive Plan, circular economy and National Water Grid Fund. However, the split is unclear.
Critical Minerals
Contrastingly, the draft 2024-25 budget identifies critical minerals as a key input to clean energy technologies required for the net zero transition and the need to scale supply.
As such, $556.1 million has been allocated over a ten-year period for the exploitation of virgin materials.
Environmental Protection
The 2024-25 draft budget indicates that $2.7 billion has been broadly allocated to environmental protection.
A robust strategy and appropriate funding are required if Australia is to reach its goal of protecting 30% of land and seas by 2030.
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