Environment and Sustainable Development 5 Minute Fix 59: draft NES, sustainability reporting, climate change economic impacts

Commonwealth

New draft National Environmental Standards – Data and Information and Community Engagement

The Commonwealth Government has released exposure drafts of two National Environmental Standards under the reformed Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act): the National Environmental Standard for Data and Information (D&I Standard) and the National Environmental Standard for Community Engagement (CE Standard). Both Standards will be made as legislative instruments under section 514YD of the EPBC Act and will be legally enforceable, binding decision-makers to ensure approvals are consistent with the relevant Standard.

Key takeaways

The D&I Standard will establish uniform requirements to ensure environmental decisions are based on principled data and information. It is structured around five enforceable principles: Representative, Transparent, Comparable, Reusable, and Ethical. Proponents must demonstrate compliance with these principles across the data lifecycle.

Proponents should be aware that:

• data and information must be collected using scientifically robust methods that account for environmental conditions;

• adequate metadata, provenance, and version control must accompany all submissions;

• data must be structured for comparability and reuse, with appropriate consent and governance controls; and

• ethical obligations, including compliance with CARE and FAIR principles, and respect for Indigenous cultural and intellectual property, are mandatory.

The CE Standard responds to findings from the 2020 Samuel Review that public participation opportunities were limited, came too late, and lacked transparency. The new CE Standard will require proponents to undertake meaningful, planned engagement with the Australian public before approval decisions can be made.

Key obligations include:

• publishing an engagement plan and inviting public comment for a period no less than 10 business days;

• providing a summary of public input to the decision-maker, including how feedback has informed the proposal;

• protecting participant privacy through informed consent, de-identification, and secure data storage; and

• ensuring accessibility for culturally and linguistically diverse communities, including through plain English and translated materials.

Both Standards will apply to individual project approvals, strategic assessments, accredited frameworks, bilateral agreements, and bioregional planning.

Public consultation

The exposure drafts and accompanying policy position papers are open for public consultation now via the Department's consultation hub for the D&I Standard and the CE Standard. Submissions close 11:59PM AEST on Tuesday 7 July 2026.

ASIC's early observations following the "first wave" of sustainability reports for Group 1 entities

ASIC has recently published its early observations on the "first wave" of sustainability reports lodged as part of Australia's mandatory sustainability reporting regime. The regime, which commenced in January last year, requires Chapter 2M reporting entities under the Corporations Act 2000 (Cth) to disclose their climate-related risks and opportunities in an annual sustainability report if certain criteria are met.

ASIC identified an increase in the quantity and quality of climate-related financial information, and greater consistency and comparability driven by the standardised requirements introduced under the regime.

However, ASIC has also noted the following key considerations which disclosing entities should consider for future reports:

• Disclaimers that conflict with the statutory framework and objectives of Chapter 2M sustainability reporting, including the duty of directors under the regime, are not permitted and may confuse or mislead users of the report. This includes, for example, disclaimers which state that an entity takes no responsibility for the accuracy or completeness of certain information.

• The use of "reasonable and supportable" information to identify climate-related risks is required and includes information about "past events, current conditions and forecast future conditions".

• Reports should provide clear, effective, and proximate disclosure of relevant judgements, assumptions, and areas of measurement uncertainty to support users to understand the basis for forward-looking information.

• The disclosure of additional climate-related information must not obscure material climate-related financial information. ASIC identified instances where reports lacked distinction between mandatory and voluntary disclosures.

• Cross-referencing information outside the sustainability report is permissible but must meet disclosure requirements.

• Entities must disclose "climate-related targets" required by law or regulation, including greenhouse gas emissions targets such as the Safeguard Mechanism.

ASIC's final observations will be published in the second half of this year.

For further background, we've summarised the key points from ASIC's regulatory guide on sustainability reporting (RG 280), released last year to assist entities that are required to prepare sustainability reports.

NSW

Net Zero Commission publishes brief on the economic impacts of climate change in NSW

On 10 June 2026, the Net Zero Commission published a brief on The Economic Impacts of Climate Change in NSW.

The brief draws on analysis of past and forward-looking projections provided in two technical studies commissioned by UNSW's Institute for Climate Risk and Response and Deloitte Access Economics to understand the significant and growing economic risk posed by physical climate change. Significantly, modelling by UNSW's Dr Timothy Neal has suggested that climate change reduced economic output in the state by an average of 18% in 2024, equating to an economic loss of approximately $180 billion.

The Commission identified five key findings about climate-related economic risk in NSW:

1. Climate change has already imposed material economic costs on NSW: historical modelling indicates that warming over recent decades has materially reduced the size of the NSW economy relative to a world without climate change, with cumulative disruptions and slower growth driving an estimated 18% reduction in income per capita by 2024.

2. Future economic outcomes diverge significantly under different global warming trajectories: under a higher warming trajectory (2.6°C by 2100), NSW faces progressively larger impacts on productivity, incomes and cost of living; a lower warming trajectory consistent with global net zero by 2050 would leave the NSW economy cumulatively $800 billion better off over the next 50 years.

3. Adapting communities and the economy to the changing climate is critical to reduce economic loss: stronger economic adaptation materially reduces losses in output, employment and incomes, while weaker adaptation responses significantly amplify economic damage. Northern NSW faces the largest relative impacts, and Sydney faces the largest absolute losses.

4. The economic impact of climate change in NSW is driven by both global and local impacts: NSW's deep integration into global markets means that climate-related disruptions overseas affect NSW households and businesses through supply chains and prices, even when local conditions are stable.

5. Cumulative climate impacts slow NSW's long-term economic growth: small annual economic losses from climate change accumulate year after year, creating a compounding effect that results in lower economic output, reduced incomes, diminished fiscal capacity, and a higher cost of living over decades.

Ultimately, the Net Zero Commission's analysis reinforces the importance of adopting climate change adaptation and mitigation strategies, recognised by the NSW Climate Change Adaptation Action Plan 2025-2029, to promote greater climate change resilience state-wide and build a climate-resilient economy.

Queensland

Changes to Queensland's environmental regime

On 2 June 2026, the Queensland Government passed the Environmental Protection (Efficiency and Streamlining) and Other Legislation Amendment Act 2025 (Qld). The Bill amends the Environment Protection Act 1999 (EP Act), aiming to improve administrative efficiency and ensure the regulatory frameworks within Queensland’s environmental legislative regime remain contemporary, effective, and responsive.

Key amendments include:

New "Code-Managed" pathway for environmental approvals

• A new system has been introduced for certain activities with predictable and manageable environmental risks. Instead of applying for a full environmental authority (EA), operators can follow a standard code for compliance.

• Small-scale mining activities will be the first to use this pathway. Operators will either register with the relevant authority or submit written notice of their intention to operate under the code, avoiding the time and cost of a full EA application.

• Existing EA holders will have 12 months to decide whether to transition to the new code system or continue under their current EA. If they do not act within this timeframe, they will automatically be moved to the new framework.

Simplified environmental impact statement process

• The requirement to publicly notify draft terms of reference for environmental impact statements has been removed, eliminating a step that previously caused delays.

• Reports prepared under the State Development and Public Works Organisation Act 1971 (Qld) can now be used to meet EA assessment requirements. This change avoids the need for duplicate assessments and documentation for projects that fall under both laws.

Changes to mining project applications

• The public interest evaluation process for Progressive Rehabilitation and Closure Plan applications has been removed, simplifying the approval process for mining projects.

These reforms focus on using standardised codes for compliance rather than individual assessments, the removal of duplicate steps, and the introduction of streamlined procedures. Proponents in Queensland should be aware of these changes and assess how the new pathways and streamlined processes may benefit operations and planned projects.

South Australia

Proposed repeal of the fracking moratorium

The Energy Resources (Regulated Activities) Amendment Bill 2026 was introduced to the South Australia House of Assembly on 20 May 2026 and proposes to remove the current moratorium on hydraulic fracture stimulation (ie. fracking). The Bill would amend the Energy Resources Act 2000 (SA) which currently prohibits fracking in the Limestone Coast region of South Australia.

A 10 year moratorium on fracking in the South-East was legislated in 2018 and is currently set to expire in 2028. If passed, the amendments would ensure a consistent approach to fracking in South Australia. It should be noted that the Bill only proposes to lift the current moratorium and does not seek to authorise activities within this area. Proposals will still be subject to the ordinary approvals processes under the Energy Resources Act.

Should the moratorium be repealed, it is expected that significant gas reserves will be unlocked at a time where the State is facing predicted gas shortages. The Minister for Energy and Mining, Tom Koutsantonis, cited the changing energy security environment and developments in the scientific evidence base of groundwater impacts as the principal reasons for lifting the moratorium. The Minister also cited amendments to the Energy Resources Act since 2018 as providing sufficient environmental safeguards. Whether the moratorium is lifted is subject to the ordinary parliamentary processes.

Victoria

The Victorian Government's additional $2.4 billion renewable investment

Sonya Kilkenny, the Minister for Planning, has announced an additional $2.4 billion towards renewable energy projects in Victoria under the Development Facilitation Program (DFP). The latest approvals reflect the Government's focus on fast-tracking power generation and battery storage projects to meet growing energy demands.

In recent months, significant approvals have included:

• a $1.3 billion battery energy storage system in Morwell;

• a $600 million battery energy storage system west of Geelong;

• a $130 million battery energy storage system in Glenrowan; and

• a $388 million wind farm in Gippsland.

The approvals follow the expansion of the DFP in 2024, which made renewable energy projects eligible for expedited planning approval under the significant economic development pathway. The rationale for this expansion is that renewable energy projects attract significant investment into the Victorian economy. This expansion followed the Victorian Government's renewable energy action plan, which targets 65% renewable energy generation in Victoria by 2030, increasing to 95% by 2035.

Since the expansion of the DFP, over 30 renewable energy projects valued at more than $11 billion have been approved through the scheme. Power generation projects are expected to supply over 800,000 homes per year, while battery storage projects will power over 2.6 million homes during evening peak periods. The Victorian Government has noted that the projects will generate over 3,800 jobs.

Project proponents should consider how the DFP may facilitate expedited planning approval and how the renewable energy action plan presents opportunities for investment in the sector.

Western Australia

Local development plans in the WA Planning Manual

The Western Australian Planning Commission (WAPC) is seeking feedback on the proposed draft Local Development Plans chapter of the WA Planning Manual, developed as part of the State Government's planning reform program.

A local development plan (LDP) is a plan used to guide and coordinate improved development outcomes responding to context, opportunities, and constraints specific to a particular development site, group of lots, or a small defined area. An LDP sets out site and development standards to guide matters including built form, coordination of access and movement, site layout, and landscaping, and may also specify exemptions from the requirement to obtain development approval for compliant development.

LDPs are intended to respond to site-specific circumstances and should be used sparingly, having regard to their role within the broader state and local planning framework. Where the objectives sought can be adequately achieved through a local planning scheme, structure plan, local planning policy, or the development application process, an LDP is unlikely to be required.

The draft LDP chapter of the WA Planning Manual updates and consolidates existing guidance on LDPs, providing clearer, more consistent direction on the preparation, assessment, implementation, and revocation of LDPs. It is supported by manner and form templates approved by the WAPC. The draft chapter reflects the requirements of the Planning and Development Act 2005 (WA) and the Planning and Development (Local Planning Schemes) Regulations 2015 (WA).

Key elements of the draft chapter include guidance on when it may or may not be appropriate to prepare an LDP, the application and assessment processes (including implementing, approving, amending, and revoking LDPs), and detailed appendices outlining manner and form requirements for residential, non-residential, and mixed-use development.

The consultation period for the draft chapter is open from 2 June to 28 July (Online Feedback Form).

Special thanks to Editor, Kian Rafie (Perth) and contributors Clare Gim (Sydney), Olivia Chudleigh (Brisbane), Kaylee Dawson (Perth), Grace McInerney (Sydney), Harrison Emery (Brisbane), and Chloe Northeast (Melbourne).