Prime Minister Anthony Albanese is facing a storm of criticism from industry leaders after securing a last-minute deal with the Greens to pass his government's controversial environmental reforms.
A Rushed Senate Deal
The agreement, finalised just before Parliament rose for the year, has seen the Labor government make significant concessions to the Greens in exchange for their support. Greens leader Larissa Waters celebrated the outcome, declaring her party is determined to get things done and claiming a significant win for climate action.
Key concessions include strengthening protections for native forests and, most controversially, excluding coal and gas projects from streamlined approval processes. This move directly contradicts Mr Albanese's previous strong support for the gas industry, particularly during his campaigning in resource-rich Western Australia.
Industry Reaction and National Concerns
Australian Energy Producers chief executive Samantha McCulloch was scathing in her assessment, stating that barring coal and gas projects from faster approvals is simply not in the national interest.
She warned the deal would entrench slow approvals, driving up energy costs, deterring investment, and delaying new gas supply that Australia urgently needs. With over five million Australian households relying on natural gas and its crucial role in manufacturing, the implications for the economy are substantial.
The approval process for the North West Shelf gas project extension in the Pilbara, which took close to seven years to secure until 2070, serves as a prime example of the delays plaguing the system.
Political Fallout and Future Implications
Western Australia's Labor Premier Roger Cook offered a restrained response, noting the outcome could have been a lot worse, reflecting the delicate balancing act between environmental concerns and economic interests in his state.
The reforms have been criticised for failing to address industry complaints about Australia's convoluted approvals system, which keeps crucial energy projects in development limbo. The Coalition faces scrutiny for not reaching a deal with industry concerns addressed sooner.
As the reforms take effect, the focus shifts to how they will impact Australia's productivity growth and energy security during the transition to renewables through to 2050 and beyond.
