Western Australia EPA tightens GHG guidelines for petroleum projects

Western Australia’s Environmental Protection Authority (WAEPA) has revised its guidance on mitigating greenhouse gas emissions from large new or expanding projects in the state, drawing the ire of the petroleum industry.

The revised guidelines outline the information required from proponents and how it may be considered by the WAEPA in its environmental impact assessment. They also set a clear threshold for when GHG emissions from the project proposals will be considered by the WAEPA and what mitigation measures will likely be required.

Chairman Tom Hatton said the WAEPA board recognized the lead role of the federal government in relation to Australia’s international obligations on reducing emissions, but that there is a need to clarify and provide greater certainty in the WAEPA’s consideration of GHG emissions.

“Over the past 2 decades, the [WA]EPA has recommended [GHG] abatement measures for about 40 proposals, however more needs to be done to limit global warming, consistent with the Paris Agreement,” Hatton said.

The chairman added that in the revised guidance, the WAEPA intends to recommend offsets for project proposals with direct emissions above 100,000 tonnes/year of carbon dioxide equivalent.

Reaction from industry to the new guidelines was swift.

The Australian Petroleum Production & Exploration Association said the guidelines threatened to chill investment in Western Australia’s major industries.

APPEA Chief Executive Malcolm Roberts said Western Australia relies heavily on its reputation as a stable investment destination and the new WAEPA guidelines send a worrying signal to prospective investors.

“As a general rule, APPEA does not support ad hoc state-based policies to tackle climate change,” Roberts said. “The industry sees a national, market-based approach as the sensible way to achieve our emissions targets at lowest possible cost. Selective regulation distorts markets and investment without necessarily achieving lower emissions.”

Roberts said, “As far as the LNG industry is concerned, our exports are contributing to a cleaner energy sector in north Asia. According to recent Australian government estimates, the country’s LNG exports are reducing emissions by at least 130 million tonnes/year.”

Roberts added that the WAEPA itself admits it has not considered the social or economic impact of its guidelines. “[WA]EPA’s approach targets Western Australia’s growth industries and will deter local investment, prompting projects to go interstate or overseas. While experts agree that a market-based approach is the least-cost way to cut emissions, the [WA]EPA wants to use the very blunt instrument of regulation,” he said.