Chapter 1Introduction
1.1On 22 June 2023, the Senate referred the provisions of the Environment Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate Change) Bill 2023 (the bill) to the Environment and Communications Legislation Committee (the committee) for inquiry and report by 27 July 2023.
1.2The bill seeks to amend the Environment Protection (Sea Dumping) Act 1981 (the Sea Dumping Act) to give effect to Australia's international obligations arising out of the 2009 and 2013 amendments to the Protocol to the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 (the London Protocol).
Context of the bill
1.3This section briefly summarises Australia's obligations under the 2009 and 2013 amendments to the London Protocol and outlines current carbon capture and storage (CCS) technologies and projects in Australia and internationally.
The London Protocol
1.4The London Protocol was first adopted on 7 November 1996 to update and eventually supersede the 1972 Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (London Convention), one of the first international conventions controlling marine pollution and dumping of wastes and other matter in the sea. There are currently 53 states that are Contracting Parties to the London Protocol.
1.5The London Protocol came into force in 2006 and is intended to create a more modern and stringent waste management system for the seas than that established by the London Convention, with greater emphasis on protection of the marine environment. The Sea Dumping Act implements Australia's international obligations under the London Protocol and regulates, among other things, the loading, dumping and incineration of waste in Australian waters.
Carbon dioxide export and geoengineering amendments
1.6On 30 October 2009, amendments to the London Protocol were adopted to enable the transboundary movement of carbon dioxide streams from a Contracting Party to the London Protocol, to another country for the purpose of carbon sequestration in sub-seabed geological formations. Australian law currently only provides for the assessment and authorisation of sequestration of domestically sourced carbon dioxide in Australian waters.
1.7On 18 October 2013, Contracting Parties to the London Protocol adopted amendments to allow for the placement of wastes or other matter for marine geoengineering activity for legitimate scientific research, including ocean fertilisation and other preventative and treatment marine geoengineering techniques to mitigate the impact of climate change. Currently in Australia, research and industry groups cannot apply for a permit to undertake such marine geoengineering research activities.
1.8Neither the carbon dioxide export amendments nor the geoengineering amendments have entered into force. However, in 2019, six of the ten Contracting Parties to have ratified the carbon dioxide export amendments have agreed to a 'provisional application' to make use of the amendments before they formally enter into force, provided that necessary steps are taken, including amending domestic legislation and the deposit of an instrument of ratification with the International Maritime Organization.
1.9On 30 November 2022, the Minister for the Environment and Water asked the House Standing Committee on Climate Change, Energy, Environment and Water (CCEEW Committee) to inquire into and report on the carbon dioxide export and geoengineering amendments to the London Protocol. The CCEEW Committee reported in June 2023 with a recommendation that the Australian Government ratify both amendments to the London Protocol.
1.10The Australian Government has indicated that it intends to ratify both the 2009 and 2013 amendments, and the proposed amendments to the Sea Dumping Act in the bill represent the first stage in this process.
CCS and sub-seabed sequestration
1.11CCS involves capturing, transporting, and storing carbon dioxide from industrial processes and injecting and storing the captured liquid carbon dioxide deep underground. The sub-seabed sequestration of carbon dioxide involves the capture and transport of carbon dioxide to an offshore sub-seabed geological formation for long-term isolation from the atmosphere in that formation.
1.12According to industry stakeholder CO2CRC, there are approximately 15 large CCS projects in Australia. Of these projects, one is operational (the Gorgon liquefied natural gas facility off the Western Australia coast), one is under development (the Moomba CCS project, in north-east South Australia) and the remainder are currently in the concept selection phase. The Department of Industry, Science and Resources also noted that the Australian Government 'has progressed consideration of areas for a 2023 Offshore Greenhouse Gas Storage Acreage Release' and that ten 'areas offshore Western Australia, Victoria and Tasmania were publicly consulted on between 19 May and 30 June 2023'.
1.13The Department of Foreign Affairs and Trade (DFAT) has indicated there are about 30 operational carbon capture, utilisation and storage (CCUS) projects around the world. CCUS is a broader category of technology than CCS, where for example, captured carbon dioxide is injected underground to enhance oil recovery in depleted oil and gas fields. In addition, DFAT indicated that there are currently 11 CCUS projects under construction and 153 in development.
Overview of the bill
1.14The bill would amend the Sea Dumping Act to enable the granting of permits for the transboundary movement of carbon dioxide streams from industrial processes for the purpose of sequestration into a sub-seabed geological formation. It would also allow for the placement of wastes or other matter for a marine geoengineering activity for the granting of permits for legitimate scientific research.
1.15According to the Minister for the Environment and Water's second reading speech, the proposed amendments 'will meet Australia's international obligations under the London Protocol. It will also protect and preserve the marine environment from potential environmental risks, through a robust, comprehensive and science based regulatory framework'.
Export of carbon dioxide streams
1.16The bill would allow the Minister to grant a permit for the export of controlled material – being carbon dioxide streams – from Australia to another country for the purposes of carbon sequestration in sub-seabed geological formations. Under the proposed changes, the Minister would need to be satisfied that the export of carbon dioxide streams for sequestration reflects the requirements outlined in the carbon dioxide export amendments to the London Protocol. According to the Explanatory Memorandum (EM):
These requirements are intended to ensure that the export may only be allowed with the agreement of the country that the carbon dioxide streams are being exported to and after undertaking a rigorous assessment process considering the environmental impact of an export.
1.17The bill would also repeal and replace the existing offence provision in the Sea Dumping Act that prohibits the export of controlled material from Australia to another country for the purpose of dumping or incineration at sea. This prohibition would be replaced with a new permitting arrangement to allow for the export of carbon dioxide streams for sequestration into a sub-seabed geological formation.
1.18In addition, the existing loading offence under the Sea Dumping Act would no longer apply in relation to the loading of carbon dioxide streams for sequestration into sub-seabed geological formations, if the loading is for the purpose of export, and that export is in accordance with the new permitting arrangement proposed by the bill. The EM noted that the intention is 'that exporters would not be required to apply for a separate loading permit if the applicable export permit is in force at the time of loading'.
Marine geoengineering activities
1.19The bill would also amend the Sea Dumping Act to enable a permit to be granted for the placement of wastes and other matter into Australian waters from any vessel, aircraft, or platform, or into any part of the sea from an Australian vessel or Australian aircraft, for a marine geoengineering activity for legitimate scientific research.
1.20The criteria for granting the new type of permit would reflect the requirements for the placement of wastes and other matter into the sea for marine geoengineering activities outlined in the amendments to the London Protocol. The EM stated that the 'requirements are intended to ensure that the placement may only be allowed for legitimate scientific research, and after undertaking a rigorous assessment process considering the environmental impact of a proposed placement activity'.
1.21The current export offence would not apply if the export were for placement and loading activities into waters that are not Australian waters, and the placement and loading itself is in line with a permit granted in accordance with the London Protocol by another party other than Australia.
1.22The bill would allow the Minister to require that the applicant for a permit for the placement of wastes or other matter into the sea for a marine geoengineering activity 'enter into an agreement with the Commonwealth concerning the undertaking of research or analysis to determine the effect that the proposed placement of wastes or other matter for a marine geoengineering activity may have on the marine environment'.
1.23The existing inspection regime under the Sea Dumping Act would be extended by the bill to include the new provisions relating to the placement of wastes and other matter into the sea for marine geoengineering activities.
1.24The bill would also insert new penalty provisions into the Sea Dumping Act to reflect the seriousness of the placement of wastes or other matter into the sea for marine geoengineering activities without a permit.
Minor consequential and technical amendments
1.25According to the EM, the bill would make minor consequential changes to enable the effective implementation of the proposed new permits. In addition, several minor amendments would also be made 'to clarify existing provisions and adopt modern drafting practices'.
Commencement
1.26The proposed amendments would commence the day after the bill receives Royal Assent, provided Australia has deposited a declaration on provisional application of the 2009 amendment, and separately, the 2013 amendments have entered into force in Australia following ratification by Australia and two-thirds of Contacting Parties to the London Protocol.
Financial implications
1.27The EM noted that the bill would have no financial impact on the Australian Government Budget.
Consideration by other parliamentary committees
1.28When examining a bill or draft bill, the committee considers any relevant comments published by the Senate Standing Committee for the Scrutiny of Bills (Scrutiny Committee) and the Parliamentary Joint Committee on Human Rights (Human Rights Committee).
1.29At the time of writing, neither the Scrutiny Committee nor the Human Rights Committee had considered the bill. However, the statement of compatibility with human rights contained in the EM concluded that the bill is compatible with the human rights and freedoms listed in Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
1.30As noted above, the CCEEW House Committee has considered the amendments to the London Protocol that are the subject of the bill.
Conduct of the committee's inquiry
1.31The committee advertised the inquiry on its website and invited relevant stakeholders to provide submissions by 6 July 2023.
1.32The committee received 36 submissions which are listed at Appendix 1 and are available on the committee's website. The committee also received several answers to questions on notice which are also available on the committee's website. The committee agreed to conduct the inquiry on the written evidence and did not hold a public hearing.
Structure of the report
1.33This report comprises two chapters. This chapter provides background information and outlines the key elements of the bill. Chapter 2 examines the key issues raised by submitters and sets out the committee's view and recommendation.
Acknowledgements
1.34The committee thanks those individuals and organisations who contributed to the inquiry by preparing written submissions and providing answers to questions on notice.