Climate Law Shields Nature, ALP Faces Climate Liability

THE CLIMATE COUNCIL congratulates Labor and the Greens for passing laws that strengthen protection for native forests and accelerate environmentally responsible renewable power. But the Council warns the Albanese Government is failing the climate test by giving new coal and gas projects a free pass on climate pollution.

Climate Council CEO Amanda McKenzie said: "This deal strengthens protections for our native forests, and provides a faster yes to responsible renewable energy projects that cut climate pollution. That will help protect communities from rising power prices and climate damage.

"But this 2025 law fails the climate test. All new coal and gas projects still get a free pass on climate pollution. In fact, the law forbids the Environment Minister from considering a project's climate pollution when assessing whether it should go ahead. That is a gaping hole in a law that should protect nature from the ravages of climate change.

"Let's be clear: the ALP has a growing fossil fuel problem. While voters expect the Government to deal with pollution from coal and gas, the Government is turning a blind eye to billions of tonnes of pollution that more fossil fuel approvals will add to this problem. This is a political liability that isn't going away – and many voters are planning to mark them down over it."

New national polling from YouGov, conducted for the Climate Council, shows seven in 10 voters wanted the Government to address climate change in the new environment law, and 44 percent of 2025 Labor voters said they would be less likely to vote for the Government again if climate change was left out of this law.

Climate Councillor Professor Tim Flannery said: "The Greens and Labor have been able to secure real wins, including better protection for native forests and a clearer path for renewable energy. That shows Parliament can work across the aisle to find solutions for the community, rather than get bogged down in politicking.

"The Greens have blocked fast tracking of coal and gas which would have been a disastrous outcome – equivalent to pouring petrol on a fire."

"But the job's far from done. In the assessment pipeline sit 42 coal and gas projects that could release 8.7 million more tonnes of pollution yearly in Australia, undermining our climate targets, and progress.

"Until we better regulate fossil fuel projects, one fifth of Australia's climate pollution, a safer future for us and our kids will fall further out of reach."

Analysis: What our new Environment Laws mean for climate

Key inclusionsLabor's initial billGreens/Labor negotiated outcome
Accelerate critical projects like responsible renewables, not polluting ones ✅ Measures to streamline project approvals ❌ Could also speed up fossil fuel approvals. ❌ Allows the coal and gas "water trigger" to be delegated to states. ✅ Measures to streamline project approvals ✅ Fossil fuel projects blocked from fast-track. ✅ No changes to the water trigger.
Measure and manage climate pollution in approvals 🟡Direct emissions (scope 1 & 2) must be disclosed, but aren't verified ❌ Full emissions (scope 3) not disclosed. ‼ Climate pollution never considered in decisions, so coal and gas projects can be approved unchecked. 🟡 Direct emissions (scope 1 & 2) must be disclosed, but aren't verified ❌ Full emissions (scope 3) not disclosed. ‼ Climate pollution never considered in decisions, so coal and gas projects can be approved unchecked.
End land clearing and native forest logging loopholes to protect important carbon sinks ❌ Native logging allowed without assessment. ❌ Loopholes allow continuing land clearing without assessment. ✅ Closes native forest logging loopholes within 18 months. ✅ Exemptions for high-risk land clearing will end.
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