Terms defined in Acts or international agreements are
italicised.
Introductory Info
Date introduced: 22 June 2023
House: House of Representatives
Portfolio: Climate Change, Energy, the Environment and Water
Commencement: Part 1 of Schedule 1 commences on the later of the day after Royal Assent and the day on which Australia deposits a declaration on provisional application of the 2009 amendment to Article 6 of the 1996 Protocol.
Part 2 of Schedule 1 commences on the later of the day after Royal Assent and the day on which the amendments to the 1996 Protocol enter into force for Australia.
Neither Part will commence if the deposit of declaration relevant to Part 1 or the amendments relevant to Part 2 do not enter into force for Australia.
Purpose and
structure of the Bill
The Environment
Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate
Change) Bill 2023 (Sea Dumping Bill) proposes to amend the Environment
Protection (Sea Dumping) Act 1981 (Sea Dumping Act) to give
effect to Australia’s international obligations under 2009 and 2013 amendments
to the London Protocol.
The Bill has 1 Schedule with 2 Parts:
- Part
1 would amend the Sea Dumping Act to allow the Minister for the
Environment to issue an export permit for a controlled material,
being a carbon dioxide stream from carbon dioxide capture processes for
sequestration into a sub-seabed geological formation, in specified
circumstances.
- Part
2 would amend the Sea Dumping Act to allow the Minister for the
Environment to issue a permit for the placement of wastes or other matter for a
marine geoengineering activity as permitted by the London
Protocol (currently, ocean fertilisation for legitimate scientific research).
It would also make a range of consequential and technical amendments, including
to offence and enforcement provisions.
Background
The release of greenhouse gases (including carbon dioxide
(CO2) and methane (CH4)), from human activities, such as
the burning of fossil fuels, are acknowledged to be contributing to climate
change.[1]
The Paris Agreement commits the global community to reducing greenhouse
gas emissions so as to hold ‘the increase in the global average temperature to
well below 2˚C above pre-industrial levels’ and pursue ‘efforts to limit
the temperature increase to 1.5˚C above pre‑industrial levels’.[2]
In addition to urgent actions to limit the release of greenhouse gases, this
will require the rapid and extensive deployment of mitigation options,
including low-emissions technologies.
Two of these technologies are sub-seabed sequestration of
carbon dioxide streams (more commonly referred to as carbon
capture and storage) and marine
geoengineering. Both of these activities fall within the broad scope of the
London Protocol and specific amendments in 2009 and 2013 have sought to
provide an
international regulatory framework to protect the marine environment from
the impacts of these activities.
London
Protocol
The International
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other
Matter (London Convention)[3]
was one of the first international conventions to protect the marine
environment from human activities. The Convention came into force in 1975 and
there are currently 87
State Parties. Its objective is ‘to promote the effective control of all
sources of marine pollution and to take all practical steps to prevent
pollution of the sea by the dumping of wastes and other matter’.[4]
In 1996, State Parties to the London Convention
agreed to the 1996
Protocol to the Convention on the Prevention of Marine Pollution by Dumping of
Wastes and Other Matter of 29 December 1972 (London Protocol).[5]
The London Protocol came into force on 24 March 2006. There are
currently 53 State
Parties to the Protocol. Importantly, the London Protocol supersedes
the London Convention for parties to both.[6]
The London Protocol aims to modernize (and
eventually replace) the Convention, principally by integrating a precautionary
approach.[7]
Under the London Protocol all forms of dumping at sea are prohibited,
except for possibly acceptable wastes identified in Annex 1 of the Protocol (the
‘reverse list’). These wastes or other matter[8]
may be considered for dumping but would require a permit from the relevant
designated national authority. The ‘reverse list’ in Annex 1 includes:
- dredged
material
- fish
wastes, or material from industrial fish processing operations
- vessels
and platforms, or other man-made structures at sea
- inert,
inorganic geological material (for example, mining waste)
- organic
material of natural origin
- bulky
items primarily comprising iron, steel and concrete (from small islands with
isolated communities and limited opportunities for other disposal)
- carbon
dioxide streams from carbon dioxide capture processes for sequestration.[9]
Amendments
to the London Protocol
Export
amendments: sub-seabed geological sequestration of carbon dioxide streams
In 2006, an amendment
to Annex 1 of the London Protocol added ‘carbon dioxide streams from
carbon dioxide capture processes for sequestration’ to the list of wastes or
other matter that may be considered for dumping.[10]
The preamble to the amendment notes ‘that carbon dioxide
capture and sequestration is one of a portfolio of options to reduce levels of
atmospheric carbon dioxide’, while recognising that carbon dioxide capture and
sequestration should not be considered as a substitute to other measures to
reduce carbon dioxide emissions’.[11]
In 2009, an amendment to Article 6 of the London
Protocol sought to overcome a prohibition in that Article on the export of wastes
or other matter to other countries for dumping.[20]
The amendment provided that the export would be conditional on an agreement or arrangement being entered into by the
countries concerned, and would require:
- confirmation
and allocation of permitting responsibilities between the exporting and
receiving countries, consistent with the provisions of the Protocol and other
applicable international law
- if
the other country was a non-Contracting Party, provisions at a minimum
equivalent to those contained in the Protocol
- notification
of agreement or arrangement to the IMO.[21]
Contracting Parties have approved a range of guidance
documents to support Contracting Parties in their implementation of the Protocol
generally and in relation to the implementation of the 2009 amendment. These include:
Relevantly, the Guidance on implementation of Article
6.2 states an agreement or arrangement entered into between two Parties for
the export of wastes or other matter from one country to another for
dumping could comprise a memorandum of agreement or a treaty, or a non-binding
memorandum of understanding respectively.[26]
Amendments to the London Protocol only come into
force if two-thirds of the Contracting Parties have deposited an instrument of
acceptance of the amendment.[27]
At the time of writing, only 10 Contracting Parties have ratified the 2009
amendment.[28]
The Australian Government has indicated an intention to do so.[29]
At the time of writing, 7 of the 10 Contracting Parties to
the Protocol have ratified the 2009 amendment have agreed to a ‘provisional
application’ of the 2009 amendment, allowing the Contracting Parties to make
use of the amendment before it formally enters into force.[30]
Those Parties are also required to have appropriate domestic legislation and
deposit an instrument of ratification with the IMO. This ‘provisional
application’ is consistent with Article 25 of the Vienna Convention on the
Law of Treaties,[31]
and would enliven the Commonwealth’s external affairs power.[32]
Marine
geoengineering and ocean fertilisation
In 2013, an amendment to the London Protocol amended
Article 1 and inserted 3 new articles or annexes: Article 6bis, Annex 4
and Annex 5.[33]
The amendment allows for the placement of matter into the sea for the purpose
of legitimate scientific research into marine geoengineering activities
(such as ocean fertilisation).
The 2013 amendment was proposed by Australia and
co-sponsored by Nigeria and the Republic of Korea, on the premise that ocean
fertilisation should only occur for legitimate scientific research purposes and
should otherwise be prohibited.[42]
The then Minister for Sustainability, Environment, Water, Population and
Communities, Tony Burke, said:
The potential impacts of ocean fertilisation could be severe
and may include ocean acidification, harmful algal blooms, oxygen depletion in
deep waters, or other unwanted ecosystem changes and human health consequences.[43]
As outlined in the Preamble to the 2013 amendment, Australia’s
proposal followed a series of resolutions by the United Nations General
Assembly and other intergovernmental bodies about the potential environmental
impacts of ocean fertilisation. For example, in its 2008 Decision, the Conference
of the Parties to the Convention on Biological Diversity noted the
‘absence of reliable data covering all relevant aspects of ocean fertilization,
without which there is an inadequate basis on which to assess their potential
risks’.[44]
It requested Parties and other Governments to:
ensure that ocean fertilization activities do not take place
until there is an adequate scientific basis on which to justify such
activities, including assessing associated risks, and a global, transparent and
effective control and regulatory mechanism is in place for these activities;
with the exception of small scale scientific research studies within coastal
waters.[45]
The 2013
amendment to Article 1 defines marine geoengineering as:
A deliberate intervention in the marine environment to
manipulate natural processes, including to counteract anthropogenic climate
change and/or its impacts, and that has the potential to result in deleterious
effects, especially where those effects may be widespread, long lasting and
severe.
The amendment prohibits the placement of matter into the
sea for marine geoengineering activities as listed in the new Annex 4 unless
the listing in Annex 4 also specifies that the activity may be undertaken in
accordance with a permit. The new Annex 5 sets out an assessment framework for
matters that may be considered for placement under Annex 4.
Annex 4 only specifies one activity, ocean
fertilization, and provides that the activity ‘may only be considered for a
permit if it is assessed as constituting legitimate scientific research taking
into account any specified placement assessment framework’.[46]
The Assessment
Framework for Scientific Research involving Ocean Fertilization was
agreed in 2010 and aims to assist regulators to assess whether proposals for
ocean fertilization constitute legitimate scientific research.[47]
At the time of writing, only six Contracting Parties have notified
the IMO of their acceptance of the amendments.[48]
Application
of the 2009 and 2013 amendments for Australia
In order for the 2009 amendment to apply in Australia, the
Australian Government would need to:
- make
appropriate amendments to the Sea Dumping Act (as proposed by the Bill)
- deposit
an instrument of ratification of the 2009 amendment with the IMO and
- deposit
a declaration of the provisional application of the 2009 amendment with the
IMO.
The provisional application would then commence and
Australia could enter into an agreement with another Contracting Party, or a
non-contracting party, for the export of carbon dioxide streams for sub-seabed
sequestration.
In order for the 2013 amendment to apply in Australia, the
Australian Government would need to:
- make
appropriate amendments to the Sea Dumping Act and
- deposit
an instrument of ratification of the 2013 amendment with the IMO.
The 2013 amendment would not however commence until such
time as the 2013 amendment comes into force generally and for Australia
(following ratification by two-thirds of Contracting Parties).
Australian
regulatory framework for sea dumping and greenhouse gas activities
Regulation
of sea dumping
Australia implements its obligations under the London
Protocol via the Environment
Protection (Sea Dumping) Act 1981 (Sea Dumping Act).[49]
The Act:
Regulates [through permits] the loading, dumping and
incineration of waste at seas and the placement of artificial reefs within Australian
waters. It also prohibits the ocean disposal of material considered too harmful
to be released into the marine environment and regulates permitted ocean waste
disposal to minimise its potential harmful environmental impacts.[50]
The Act is administered by DCCEEW and the Minister for the
Environment and Water is the responsible Minister.
The Act applies generally in Australian waters,
including coastal
waters.[51]
However, the Act contains special provisions relating to specified maritime
boundary regions, including waters that are subject to the Torres
Strait Treaty (the ‘Top
Hat’), the Australian-Indonesia
Delimitation Treaty and the Greater
Sunrise special regime area.[52]
The Act includes provision for the Minister to require actions
to be taken to repair or remedy, or mitigate any damage, arising from the
dumping or incineration of controlled material in Australian
waters.[53]
It also provides that, if a person has been convicted of a relevant offence,
the Commonwealth may recover its costs of implementing actions to repair or
remedy, or mitigate any damage arising from the commission of the offence.[54]
Regulation
of greenhouse gas activities
Greenhouse gas activities, including assessments and
injection and storage activities, are regulated by the Offshore Petroleum
and Greenhouse Gas Storage Act 2006 (OPGGS Act) and associated
regulations. The Act is administered by the Department of Industry, Science and
Resources (DISR), and the Minister for Resources is the responsible Minister.
The OPGGS Act allows for the grant of greenhouse
gas titles, covering exploration and assessment of potential greenhouse gas
storage formations and injection sites, greenhouse gas holding leases, and
greenhouse gas injection licences. The responsible Commonwealth Minister must
approve key greenhouse gas operations.[55]
An approved site plan must also be in place before greenhouse gas injection
activities can take place.[56]
The approval process covers the lifecycle of projects, including
decommissioning and post-closure monitoring activities.
A number of other entities are responsible for specific
matters under the Act, including:
- Cross-boundary
Authorities, comprising the responsible Commonwealth Minister and a responsible
state or Northern Territory Minister and which may be established to
make certain decisions in relation to the grant of greenhouse gas titles and
conditions thereto[57]
- the
National Offshore Petroleum
Titles Administrator, a branch of DISR headed by the Titles Administrator, which
administers offshore greenhouse gas storage titles in Commonwealth waters
- the
National Offshore Petroleum Safety and
Environmental Management Authority (NOPSEMA), which regulates health and
safety, structural (well) integrity and environmental management for offshore
petroleum and greenhouse gas storage activities in Commonwealth waters, and in
coastal waters where regulatory powers and functions have been conferred by the
relevant state or Northern Territory. NOPSEMA assesses and approves environment
plans relating to petroleum and greenhouse gas activities, including sub-seabed
sequestration of carbon dioxide (noting an approval may also be required under
the EPBC Act (see below)).[58]
The Australian Government first released greenhouse
storage acreage for bidding in 2014.[59]
The DISR provides an
overview of the acreage release process. At the time of writing, there are
six active greenhouse gas
assessment permits, 1 each in the Bonaparte, Browse and Gippsland Basins
and 3 in the Northern Carnarvon Basin. On 19 May 2023, the Government released
information on 10 potential areas for inclusion in the 2023 offshore
greenhouse gas storage acreage release. Submissions to the House and Senate inquiries
indicate the interest of the oil and gas industry in developing these titles.[60]
Environmental
assessment and approval for actions with a significant impact on matters of
national environmental significance
The Environment
Protection and Biodiversity Conservation Act 1999 (EPBC Act)
establishes a regime for the assessment and approval of actions that are likely
to, have or may have a
significant impact on a matter
of national environmental significance (MNES). Those matters include the
Commonwealth marine area, threatened species and ecological communities, and
national and World Heritage places.
While the grant of a governmental authorisation (such as a
greenhouse gas storage title) under the OPGGS Act is not an action for
the purposes of the EPBC Act,[61]
greenhouse gas injection and storage activities may need to be referred for
assessment and approval under the EPBC Act. This is because, in contrast
to petroleum activities, these activities are specifically excluded from
the ‘class of actions’ included in the grant
of approval of NOPSEMA’s
environmental management authorisation process under Part 10 of the EPBC
Act (providing for strategic assessments).[62]
That approval allows NOPSEMA
to assess and approve petroleum activities that are likely to, have or may
have a significant impact on a MNES without the need for any further approval
from the Minister for the Environment under the EPBC Act.
Marine geoengineering activities, including ocean
fertilisation, may also need to be referred for assessment and approval under
the EPBC Act and, depending on their location, other relevant
Commonwealth and state or NT legislation.
Generation of carbon credits for CCS activities
The Clean
Energy Regulator (CER) administers several Commonwealth laws and associated
instruments for measuring, managing, reducing or offsetting Australia’s carbon
emissions, including the Emissions Reduction Fund.
Since September 2021, under the Carbon Capture and
Storage Methodology Determination it has been possible for eligible
projects to generate Australian Carbon Credit Units (ACCUs) from an activity
that captures greenhouse gases that would have been released to the atmosphere
and transports them for injection into underground geological formations for
permanent storage.[63]
At the time of writing, only 1 project has been registered, the Moomba Carbon
Capture and Storage Project, an onshore geological storage project in South
Australia.[64]
Committee
consideration
Joint
Standing Committee on Treaties
In February 2020, the Joint Standing Committee on Treaties
considered the 2009 and 2013 amendments to the London Protocol and
recommended that binding treaty action be taken.[85]
House
Standing Committee on Climate Change, Energy, Environment and Water
On 30 November 2022, the Minister for Environment and
Water asked the House Standing Committee on Climate Change, Energy, the Environment
and Water to inquire into and report on the 2009 and 2013 amendments to the London
Protocol.[86]
The House Standing Committee adopted
the inquiry on 23 January 2023. It received 22 submissions
and held 1
public hearing.
The Committee’s report
was tabled in the House of Representatives on 13 June 2023, recommending
that the Australian Government ratify both the 2009 and the 2013 amendments to
the London Protocol.[87]
Senate
Environment and Communications Legislation Committee
The Bill has been referred to the Senate Environment and
Communications Legislation Committee for inquiry and report by 27 July 2023.
Details are available at the inquiry
homepage. The inquiry received 36
submissions and did not hold a public hearing.
The Committee recommended that the Bill be passed.[88]
The Committee report noted that evidence received in submissions to the inquiry
focused on economic, technical and environmental issues which, while worthy of
public debate, were not central to the Committee’s inquiry into the provisions
of the Bill. The Committee concluded:
On balance, the committee is satisfied that the concerns
about environmental impacts can be addressed through the current and proposed
regulatory framework. In this regard the committee notes the DCCEEW has
indicated that Australia would take a precautionary approach to evaluating
activities seeking to undertake legitimate marine geoengineering research.
Overall, the committee is of the view the bill will help meet Australia’s
international obligations under the London Protocol.[89]
However, the Australian Green’s issued a dissenting
report.[90]
Their report expresses the view ‘the priority should be placed on the reform of
our federal environmental law, including the addition of a climate trigger to
stop further pollution’.[91]
They recommended that:
Should the legislation be brought to the Senate to be voted
on, a number of amendments must be made to ensure there is no damage to the
environment or climate this bill claims to protect. These include:
- With specific reference to the Bayu Undan project in Timor Leste,
the government must outline the regulatory capacity and readiness on the part
of Timor Leste to ensure the same level of environmental protection as
Australia, and if so, the mechanisms by which this will be achieved.
- Restrict the scope of Ministerial discretion in decision making
by amending the Bill to provide stricter and more prescriptive provisions for
the issuing of CO2 export permits.
- Amend the Bill to mandate an environment impact assessment be
conducted prior to the granting of a permit Amend the Bill to mandate
compliance with both the International Maritime Organization’s 'Risk Assessment
and Management Framework for CO2 Sequestration in Sub-Seabed
Geological Structures' and the 'Specific Guidelines on Assessment of CO2
Steams for Disposal into Sub-Seabed Geological Formation (the Specific
Guidelines)'.
- Amend the Bill to clearly define the relationship between the
Bill and other regulatory frameworks—including the OPGGS Act, the EPBC Act and
state-based environmental regimes.
- Amend the Bill to clearly articulate the responsibilities of the
Australian government and permit holders in relation to transboundary liability
in the event of accident or adverse environmental outcome.[92]
Senate
Standing Committee for the Scrutiny of Bills
At the time of writing, the Senate Standing Committee for
the Scrutiny of Bills is yet to consider the Bills.
Policy position of non-government parties/independents
Liberal-National
Coalition
At the time of writing, the Liberal-National Coalition do
not appear to have commented directly on the Bill.[93]
However, the Bill appears to cover the same subject matter as the Environment
Protection Sea Dumping (Miscellaneous Amendments) Bill that was previously proposed
for introduction by the Morrison Government in the April 2022 sittings, to:
amend the Environment Protection (Sea Dumping) Act 1981 to
implement changes made to the London Protocol allowing for the export of carbon
dioxide for the purposes of geo-sequestration and to regulate the placement of
matter for ocean fertilisation.[94]
That Bill was not tabled due to the prorogation of the
46th Parliament.
The Morrison Government provided extensive support for CCS,
through research and development funding, direct grants, and other measures. According
to Departmental estimates ‘[s]ince 2008, the Australian Government has
committed over $790 million to support research, development and demonstration
of CCUS [carbon capture, use and storage] technologies and potential CO2
storage sites’.[95]
Australian
Greens
Senator Peter Whish-Wilson, taking the position that there
is a lack of evidence of commercial scale, cost-effective CCS in the ocean, has
observed that ‘proper scrutiny [of this bill] is going to be critical’.[96]
In a dissenting report
to a Senate inquiry in 2018, Senators Richard Di Natale and Janet Rice wrote
‘CCS is an experimental, largely unproven technology’ and noted evidence to
that inquiry that that the consequences of storing gas underground were unknown
and that ‘there are also potential direct dangers from the storage of carbon
dioxide’.[97]
On 8 February 2023, the Australian Greens Leader in the
Senate, Senator Larisa Waters, moved
a motion proposing that 3 legislative instruments relating to carbon
capture and storage (including the methodology determination that allows
Australian Carbon Credit Units to be generated by CCS projects) be disallowed (as
referred to above). The motion was unsuccessful.
House
Independents
Independent member for Kooyong, Dr Monique Ryan, has questioned
the ethics of Australia exporting carbon dioxide to Timor-Leste.[98]
Position of major interest groups
Industry
participants, representative bodies and research organisations
Oil and gas companies, representative bodies and research
organisations – with a focus on CCS – strongly support passage of the Bill.[99]
The CO2CRC, whose members include oil and gas
organisations, universities and State and Federal government agencies,
considers Australia’s ratification of the Article 6 amendment ‘essential’. The
CO2CRC submitted:
the signing will yield significant environmental and economic
benefits to Australia, its major Asia Pacific trading partners, and
neighbouring developing countries such as Timor Leste. Failure to sign, or
further delays, would entail significant risks to the projects necessary to
deliver the government’s legislated emission targets.[100]
The CO2CRC states that ‘there are approximately 15 large
CCS projects which are in the concept selection, development or operations
phases, with many more in the earlier evaluation phase’.[101]
Five to six of these projects are described as ‘already contingent’ on
ratification of the 2009 amendment and its provisional application.[102]
It argues that:
... [the revised] Safeguard Mechanism effectively mandates
the use of CCS in all new gas projects, as well as in other high-emissions
industries such as cement and steel (i.e. in hard-to-abate sectors). The
approvals of these new CCS projects are both time-sensitive and dependent upon
an appropriate and supportive domestic regulatory framework.[103]
The CO2CRC argues that ‘a
once-in-generation-opportunity...’ ‘could be lost if Australia does not
modernise its legislative framework’ by reducing the timeframes for project
approvals and ratifying the 2009 amendment.[104]
Academics
Brent, McDonald and Simon observe that the House Inquiry
did not consider issues such as the impact of the provisions on subsidies and
incentives encouraging investment in research or the (eventual) availability of
carbon credits for marine geoengineering activities.[105]
They argue that while the Bill ‘favours risk management, which is appropriate
at the early stages of research and development’, ... ‘by ruling out future
[commercial] deployment, Australia may undermine incentives to advance
research’.[106]
Professor Samantha Hepburn argued that the ‘offshore
carbon capture storage has not worked effectively in Australian waters’ and cautioned
that ‘it’s unclear how [poorer] countries will acquire the capacity and
knowledge to achieve successful carbon storage when wealthy fossil fuel
companies operating in Australia could not’.[107]
Commonwealth
departments
Several Commonwealth departments provided submissions to
the Senate inquiry.[108]
The Department of Foreign Affairs and Trade (DFAT)
submission argues that passage of the Bill and subsequent ratification steps (to
facilitate provisional application of the 2009 amendment) are crucial for
supporting Australia and its’ regional partners’ net zero goals.[109]
Specifically, DFAT argues that several proposed projects are dependent on
provisional application of the 2009 amendment in Australia, including the
investment of Japanese and Korean joint venture partners in Santos’ proposed
exploitation of the Barossa offshore gas field, development of the Darwin LNG
hub, and conversion of the Bayu-Undan offshore oil and gas field (in Timor
Leste) into a CCS storage project.[110]
The submission also indicates that the Republic of Korea and Singapore are also
exploring the feasibility of exporting CO2 to Australia.
The DISR submission states ‘...this is a relatively new
area of policy. There are complex policy, legal, environmental and economic
issues that will require consideration depending on the potential source and
destination of a carbon dioxide stream’.[111]
However, the submission does not provide further elaboration of these issues.
Environment
and energy non-government organisations
Environment and energy non-government organisations are
strongly opposed to the passage of the Bill and consider CCS an unproven
technology designed to extend the life of the fossil fuel industry.[112]
The Wilderness Society has urged the government to deliver
overdue reforms to the EPBC Act, ahead of ‘fossil fuel industry
demands’.[113]
The Wilderness Society submitted:
It is disappointing that the Albanese government has created
space within its environmental legislative agenda for this before effective,
future focused environment laws that would actually help the environment are
brought forward. Urgent environmental matters lay dormant while the needs of
the fossil fuel industry leap ahead of the queue.[114]
The Wilderness Society point to the $60 billion
decommissioning liability of the oil and gas industry and argue that the
Government should refuse to issue greenhouse gas activity permits or approvals to
any oil and gas companies with outstanding decommissioning liabilities.[115]
The Environment Centre NT has expressed concerns that ‘the
changes would be used to facilitate the expansion of gas developments such as
Santos’ Barossa offshore project, which it has proposed will include a CCS
facility in the depleted Bayu-Undan gas reservoir in waters off Timor‑Leste’.[116]
Dr Kirsty Howie (director) said:
CCS hasn’t been shown to work at scale anywhere in the world.
It’s time to give up the ghost and phase out fossil fuels urgently, rather than
peddling false solutions like CCS to justify their expansion.[117]
The Institute for Energy Economics and Financial Analysis
(IEEFA) argue that the long title of the Bill is misleading, as ‘it will
neither use new technology, nor will [the amendments] fight climate change’.[118]
They argue that the ‘proposed legislation to enable Australia to import and
bury other countries’ carbon dioxide (CO2) emissions should not go
ahead’, citing a ‘a dangerously high risk of financial and legal liability’.[119]
Kevin Morrison, an energy finance analyst at IEEFA, argues
that ‘any economic benefits derived from importing other countries’ emissions
for disposal has to be balanced against the risk – financial and otherwise –
that Australia would be lumbered with’.[120]
IEEFA also point to CCS’s history in enhanced oil
recovery, and state that CCS does not address the vastly greater proportion of
scope 3 emissions generated at the time fossil fuels are burned.[121]
Environmental
law offices
Some public interest environmental law firms also strongly
opposed to the passage of the Bill. The Environmental Defenders Office (EDO) submitted:
...policies such as CCS and geoengineering carry the risk of
justifying ongoing use and extraction of fossil fuels, and strongly recommends
they should not be promoted or encouraged in order to sustain the life of the
fossil fuel industry. CCS in particular also carries significant risk of
additional and unintentional emissions pollution in its operation, while the
environmental and social risks of large scale geoengineering remain unknown.[122]
EDO, among other stakeholders, observe that the
interactions between the proposed amendments to the Sea Dumping Act and other
relevant legislation, such as the OPGGS Act, are unclear.[123]
Environment Justice Australia (EJA) identifies several significant
and ‘intractable problems’, including inadequate risk management provisions,
issues of climate injustice associated with the export of emissions to poorer
neighbouring countries, avoided responsibility for greenhouse gas pollution,
and facilitation of fossil fuel expansion.[124]
Unions
The Maritime Union of Australia (MUA) submitted that the Sea
Dumping Act should be reviewed (and permit fees updated), particularly with
a view to ensuring appropriate application and consistency in requirements of
the Act and the OPGGS Act in regard to the disposal of offshore oil and
gas infrastructure.[125]
The MUA expressed concerns that aging oil and gas infrastructure would be
repurposed ‘regardless of its appropriateness as a way of avoiding full removal
of the equipment’ as part of decommissioning obligations.[126]
Financial
implications
The Explanatory Memorandum states that the Bill will have
no financial impact on the Australian Government budget.[127]
The 2023–24 Budget measure ‘Working with the Australian
resources industry on the pathway to net zero’ included $12.0 million over 3
years from 2023–24 for ‘a review of the environmental management regime for
offshore petroleum and greenhouse gas storage activities to ensure it is fit
for purpose for a decarbonising economy’.[128]
Notably,
...the review will also examine opportunities to provide
regulatory and administrative certainty for offshore carbon capture and
storage projects to enable Australian industry to meet net zero targets
whilst delivering domestic energy security and regional energy security.[129]
[emphasis added]
The October 2022 Budget contained a statement regarding ‘realignment
of investment in carbon capture technologies’, indicating $141.1 million would
be provided over 10 years from 2022–23 for the establishment of the Carbon
Capture Technologies for Net Zero and Negative Emissions program to be
administered by DCCEEW.[130]
Commonwealth
indemnity for greenhouse gas storage injection activities
The Offshore Petroleum and Greenhouse Gas Storage Act
contains provisions for the Commonwealth to indemnify a greenhouse gas
injection licensee against future liability in relation to sequestration at a particular
site, following a closure assurance period of at least 15 years.
Such a period may be declared if the responsible Commonwealth Minister is
satisfied that sequestered greenhouse gas is behaving as previously modelled in
the approved site plan, that there is no significant risk of major impact on
geotechnical integrity, human health or safety, or the environment.[131]
Under the OPGGS Act, subject to several statutory
preconditions, the Commonwealth is required to indemnify a person if a person who
is or has been the registered holder of a greenhouse gas injection licence
subsequently incurs or accrues (after the closure assurance period
has ended)[132]
a liability for damages and the liability is attributable to an act or omission
during the operation of the licence relating to the carrying out of GHG
injection operations.[133]
The Commonwealth is also taken to assume the liability of any such licence
holder who no longer exists.[134]
The relevant Western Australian Act contains a similar
provision.[135]
However, the Australian Government has entered into an agreement in which the Australian
Government agrees ‘to provide the [WA] State Government with a “back to back”
indemnity for 80% of any liability the State incurs as a result of third party
common law claims associated with the CO2 injection project’.[136]
This commitment is reflected as an unquantifiable contingent liability in the
Australian Government’s Budget Papers.[137]
This arrangement creates an expectation that the Australian Government will
also provide an indemnity for other projects in coastal waters.
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[138]
Parliamentary
Joint Committee on Human Rights
At the time of writing, the Parliamentary Joint Committee
on Human Rights had not considered the Bill.
Key
Provisions
The Sea Dumping Amendment Bill includes several key new
provisions and amendments to existing provisions which seek to implement the
2009 and 2013 amendments to the London Protocol. This section does not
consider the numerous consequential amendments that flow from those new and
amended provisions.
Objects and
definitions
The Sea Dumping Act was enacted in 1981 to provide the
legislative basis for giving effect to Australia’s obligations under the London
Convention.[139]
The Act has been amended numerous times (although not comprehensively),
including to repeal references to the London Convention and refer
instead to the London Protocol, to take account of changes in
international maritime agreements and boundaries, and to provide for permits
for the placement of artificial reefs.[140]
The Act does not have an objects clause. An objects clause
provides a general understanding of the purpose of the legislation or sets out
general aims or principles that assist in interpreting the detailed provisions
of the legislation.[141]
Some submitters to the Senate inquiry suggest that an objects clause should be included
in the Bill, specifically incorporating the application of the precautionary
principle as enunciated in the London Protocol and a requirement that
carbon projects subject to permits result in genuine emissions reductions.[142]
Key definitions are provided in section 4 of the Act. The
Bill adds or amends several key definitions. For example,
- a
new definition of marine geoengineering activity is added, with
reference to Article 1 ‘Definitions’ of the London Protocol and activities
listed in Annex 4 of the Protocol[143]
- the
existing definition of controlled material (‘wastes or other
matter within the meaning of the Protocol, and a vessel, aircraft or platform’)
is amended by removing reference to ‘within the meaning of the Protocol’ and a
new definition of wastes or other matter is added, with reference
to the meaning given by Article 1 ‘Definitions’ of the London Protocol.[144]
Granting of
permits
The Sea Dumping Act currently contains offence
provisions relating to:
- the
dumping of controlled material into Australian waters or from an
Australian vessel, aircraft or platform into any part of the sea
- the
incineration of controlled material at sea on a vessel or
platform in Australian waters, or on an Australian vessel in any part of the
sea
- the
loading of controlled material on a vessel, aircraft or platform
in Australia or Australian waters, or the loading of controlled material
on any Australian vessel or aircraft, knowing or reckless as to whether the
material will be dumped or incinerated at sea
- the
export of controlled material to another country knowing
or reckless as to whether it will be dumped or incinerated at sea
- the
placement of an artificial reef other than in accordance with a permit.[145]
The offences are indictable offences but may be heard in a
court of summary jurisdiction (that is, a lower court).[146]
The offences are subject to tiered maximum penalties, depending on whether the
offending material is seriously harmful material, an offending
material not within Annex 1 of the London Protocol, or in ‘any other
case’. Seriously harmful material is defined as ‘radioactive
material or any other material prescribed in the Regulations’.[147]
No such materials have been prescribed in the Environment Protection
(Sea Dumping) Regulations 1983. It is unclear if the Government intends to
amend the Regulations to define carbon dioxide streams as a seriously
harmful material.
The offence provisions do not apply in circumstances in
which the action is undertaken in accordance with a permit granted by the
Minister under the Act.[148]
A person may make an application to the Minister for the
grant of a permit and the Minister may, in their absolute discretion, grant or
refuse to grant a permit.[149]
The Act does not prescribe the type of information that should be provided in
support of an application, and existing subsection 19(8A) sets out matters
(so far as they are relevant) that the Minister must have regard to in deciding
whether to grant a permit.[150]
Numerous submitters to the Senate Inquiry (including ACF,
AMCS, ENCT, EJA, the NELA and LTGA) express concern that the Act does not
contain a requirement for environmental impact assessment of proposed
activities.[151]
Rather, existing subsection 18(4), provides that if in the
Minister’s preliminary consideration of the application the Minister forms the
view that ‘it will be necessary for research or analysis to be undertaken to
determine the effect of the proposed’ activity, the Minister may require the
applicant to enter into an agreement with the Commonwealth relating to any or
all of the following:
- undertaking
of that research and analysis
- reimbursement
of the Commonwealth’s expenses incurred in undertaking or supervising the
undertaking of that research and analysis
- reimbursement
of the Commonwealth’s expenses incurred in undertaking that research and
analysis in circumstances in which the applicant failed or neglected to do so[152]
- payment
of a security by the applicant for any amount for which they may become liable
under the agreement
- reporting
of the results of any research or analysis.
Similarly, existing subsection 19(9) provides that before
granting a permit, the Minister may require the applicant to enter into an
agreement with the Commonwealth relating to ‘the consequences of the release
into the marine environment through the proposed activity’, among other
matters.
New offences
and permits
Export of carbon
dioxide streams from carbon dioxide capture processes for sub-seabed
sequestration
As outlined above, the Act currently contains an offence
provision relating to the export of controlled material.[153]
Item 1 of the Bill repeals and replaces existing subsection 10D(1) to extend
the offence provision to circumstances in which:
- a
person exports a controlled material, knowing or reckless as to
whether it will be dumped into the sea or incinerated at sea, and
- where
the controlled material is carbon dioxide streams from carbon
dioxide capture processes for sequestration into a sub-seabed geological
formation, the export is not in accordance with a permit.
Based on existing subsections 10D(2) and paragraph
37(3)(c), the applicable penalty would be imprisonment for up to 1 year or a
fine up to 250 penalty units, or both, or if tried summarily imprisonment for
up to 6 months or a fine of up to 60 penalty units, or both.[154]
This is because carbon dioxide streams are not defined as seriously
harmful material.
As outlined above, the Act currently provides that the
Minister may grant permits required for the purposes of the Act. Item 3
of the Bill inserts proposed subsection 19(7B) to allow the Minister to
grant a permit for the export of controlled material to another
country for dumping if the Minister is satisfied:
- that the
controlled material is carbon dioxide streams from carbon dioxide capture
processes for sequestration into a sub-seabed geological formation; and
- of the
matters referred to in paragraphs 4.1, 4.2 and 4.3 of Annex 1 to the Protocol;
and
- that there
is an agreement or arrangement in force between Australia and the other country
that includes the matters covered by paragraphs 2.1 and 2.2 (as appropriate) in
the Annex to Resolution LP.3(4) ...; and
- that the
grant of the permit would be in accordance with Annex 2 to the Protocol; and
- of any
other matters that the Minister considers relevant.
Numerous submitters to the Senate Inquiry argue that the
Minister should also be required to specifically consider the 2012 Specific
guidelines and the Risk Assessment and Management Framework agreed
by the Contracting Parties to the Protocol.[155]
In addition, noting that the export could be to a developing country who may
also be a non-Contracting Party, EJA argue that, in considering whether it is
appropriate to export carbon dioxide streams, the ‘Minister should be required
to consider independent information about the regulatory framework and
governance capacity of the destination country, and to be reasonably satisfied
that CO2 from Australian projects sent overseas for storage will be
successfully and permanently stored underground’.[156]
Marine
geoengineering activity
Items 16, 17 and 18 of the Bill inserts proposed
sections 10AA, 10CA and 10DA establishing new offences in relation
to the:
- placement
of wastes or other matter into Australian waters, or any other
part of the sea from an Australian vessel or aircraft, for marine
geoengineering activities, where the placement is not in accordance
with a permit
- loading
of wastes or other matter, knowing or reckless as to whether the wastes
or other matter will be placed into Australian waters, or any other
part of the sea, for a marine geoengineering activity, and
knowing or reckless as to whether the placement will not be in accordance with
a permit
- export
of wastes or other matter, knowing or reckless as to whether the wastes
or other matter will be placed into Australian waters, or any other
part of the sea, for a marine geoengineering activity, and
knowing or reckless as to whether the placement will not be in accordance with
a permit.
In each case, the applicable penalty is:
- if
the wastes or other matter is seriously harmful material,
imprisonment of up to 10 years or a fine of up to 2,000 penalty units or both,
or if the matter is heard summarily, imprisonment of up to 2 years or a fine of
up to 240 penalty units, or both
- in
any other case, imprisonment for 12 months or a fine of 250 penalty units, or
both, or if the matter is heard summarily, imprisonment of up to 6 months or a
fine of up to 60 penalty units, or both.[157]
Item 35 of the Bill inserts proposed subsection
19(7C) to allow the Minister to grant a permit for the placement of wastes
or other controlled matter into Australian waters, or into any part of
the sea from any Australian vessel or Australian aircraft, for a marine
geoengineering activity if the Minister is satisfied:
- that the
placement of wastes or other matter for that activity is for scientific
research covered by Annex 4 to the Protocol; and
- that
pollution of the marine environment from the placement of wastes or other
matter for that activity would, as far as practicable, be prevented or reduced
to a minimum; and
- that the
placement of wastes or other matter for that activity is not contrary to the
aims of the Protocol; and
- that the
grant of the permit would be in accordance with Annex 5 to the Protocol,
taking into account any Specific Assessment Framework:
- that
is referred to in paragraph 3 of that Annex; and
- that has
been adopted by the Parties to the Protocol; and
- that is in force
from time to time; and
- of any
other matters the Minister considers relevant.
The Assessment Framework does not use the phrase
‘legitimate scientific research’, but sets out the following criteria for
determining – at the initial assessment phase – whether a proposed activity has
‘proper scientific attributes’:
- The
proposed activity should be designed to answer questions that will add to the
body of scientific knowledge. ...
- Economic
interests should not influence the design, conduct and/or outcomes of the
proposed activity. There should not be any financial and/or economic gain
arising directly from the experiment or its outcomes. ...
- The
proposed activity should be subject to scientific peer review at appropriate
stages in the assessment process. ...
- The
proponents of the proposed activity should make a commitment to publish the
results in peer reviewed scientific publications and include a plan ... to make
the data and outcomes publicly available in a specified time-frame.[158]
[author’s abbreviation]
Other
issues
The Sea Dumping Act operates in conjunction with the
OPGGS Act and the EPBC Act. These Acts contain existing
mechanisms for the assessment and approval of activities, including the
sequestration of carbon dioxide streams from domestic sources in sub-seabed
geological storage formations and the assessment and approval of actions that
have a significant impact on matters of national environmental significance.
Importantly, the EPBC Act is currently undergoing a major reform process
and exposure drafts of amending legislation are expected to be released in the
coming months.
The existence of numerous regulatory frameworks raises
issues of regulatory consistency, duplication and siloing, impacting the
ability of project proponents, major interest groups, and the public to
navigate and effectively engage in those regulatory processes. It is notable
that several departments recognise that the issues being regulated are novel
and complex and point out that further work will be required – after the Bill
has been passed.[159]
Import of
carbon dioxide streams
The Sea Dumping Amendment Bill does not include any
provisions relating to the import of carbon dioxide streams. According to the
DCCEEW:
Any import of CO2 for sub-seabed sequestration will
be subject to a bilateral agreement or arrangement between the exporting State
and the Australian Government ...
Any application to sequester imported CO2 in
sub-seabed geological formations within Australia’s jurisdiction would be
assessed against the same regulatory frameworks and to the same standards as
domestically sourced CO2.[160]
The Department’s submission also indicates that additional
permits or approvals may be required under the Customs Act 1901
and the Biosecurity
Act 2015.[161]
It is unclear what level of transparency there will be
around the import of carbon dioxide streams for sequestration, with agreements
with Contracting and non-Contracting Parties to the London Protocol to
be negotiated on a case-by-case basis. For example, while project documentation
submitted for assessment under the OPGGS Act and EPBC Act (where
applicable) would be expected to clearly indicate that a project expects to
receive carbon dioxide streams from other sources, it is possible that some
aspects of arrangements will be subject to commercial-in-confidence claims.
Transparency
and consultation
Existing section 25 of the Act provides that the Minister
must publish certain matters in the Gazette, including applications for
permits, permits granted and any associated conditions, refusals to grant
permits, and any revocation, variation, suspension or cancellation of the
suspension of a permit. The Act does not stipulate timeframes for the publication
of such information.[162]
The Act does not currently include requirements for public
consultation in relation to permit applications, notification of interest
holders (such as native title holders), or an associated requirement for the
Minister to have regard to comments received from the public or interest
holders.
Notably, the requirements for consultation and public
disclosure of assessment and authorising documentation are also set out in the Assessment
Framework.[163]
The 2012 Specific Guidelines also recommend ‘that opportunities are
provided for public review and participation in the permitting process’.[164]
Several stakeholders suggested improvements to
transparency of permit applications, requirements for consultation, and
reporting.[165]
For example, the EJA argues that the Bill should be amended to include
‘transparency measures’, including public exhibition of permit applications, a
requirement that the Minister have regard to public submissions, and
third-party merits review of permitting decisions.[166]
IEEFA also argues that the Bill should be amended to ‘enhance legal and
environmental protections, transparency and accountability of proposed
transboundary CCS projects’.[167]
Concluding
comment
The present Bill seeks to amend the Sea Dumping Act
to implement the 2009 and 2013 amendments to the London Protocol. These
would provide a framework to regulate the export of carbon dioxide streams for
sub-seabed sequestration in geological formations and for marine geoengineering
activities respectively. While it is unclear if and when the 2013 amendments
will enter into force for Australia, the passage of the Bill and consequent provisional
application of the 2009 amendment is noted to be crucial for the viability of
several proposed CCS projects which will export or import carbon dioxide
streams from or to Australia for sub-seabed sequestration in geological
formations.
Submissions to the Senate inquiry indicated the opposing
views of major interest groups, with the oil and gas industry strongly in
favour of the Bill and all other groups raising numerous serious concerns,
including that the so-called ‘new technologies’ distract from the urgent need
to reduce greenhouse gas emissions at source.
Author acknowledgement: with thanks to Lizzie Smith and
Dr Martin Smith for assistance with background research and Dr James Prest for
peer review of an earlier version of this Digest.