The Coalition has not ruled out striking a deal with Labor to create a stripped-back Environment Protection Agency, as big business urges the major parties to team up to sideline the Greens and their push for a so-called climate trigger.
The West has confirmed Environment Minister Tanya Plibersek is speaking with the Opposition as well as the Greens on laws to establish a new federal EPA.
The Coalition’s vocal criticism of Labor’s Nature Positive agenda has fuelled expectations it will oppose the legislation, forcing the Government to turn to the Greens to get it through Parliament.
That prospect has frightened business and mining leaders, who are convinced Labor will agree to include a mechanism that requires decision-makers to factor in a project’s potential emissions — commonly referred to as a climate trigger — to secure the left-wing party’s vote.
The Coalition is yet to reach a formal position and could wait until after a Senate inquiry into the Bill reports next Monday before it does.
The Opposition would not support the EPA in its current form but could be swayed if Labor agreed to significantly dilute the powers of the independent agency and its CEO.
Industry and Coalition sources believe the Government is open to reducing the EPA to simply a compliance and enforcement body, leaving decisions on project approvals to environment department bureaucrats and the minister.
Ms Plibersek’s office would not comment on possible concessions but confirmed negotiations on the legislation were underway.
“We’re talking with people across the Parliament to get this legislation through — that’s what good governments do,” Ms Plibersek said.
“There is something in these bills for everyone.
“For business, a new body called Environment Information Australia will give industry easier access to the latest environment data and cut assessment times.
“And for the environment, we are setting up Australia’s first environment protection agency with strong new powers and penalties to better protect nature.”
Shadow environment minister Jonno Duniam said the Coalition would push Labor to make “bad laws better”.
But Senator Duniam said Labor appeared intent on passing the laws even if it meant dealing with the Greens.
“Far from being concerned about laws that will last and have a positive impact, if it suits them, they will do a deal with the Greens which will bring in a job-destroying climate trigger and also an unscientific ban on native forestry,” he said.
The West understands the Coalition party room is split on the policy, with some Nationals refusing to back an EPA under any circumstances.
Greens environment spokeswoman Sarah Hanson-Young confirmed the party would push for a climate trigger and a ban on native forest logging during negotiations.
While industry is broadly opposed to the Nature Positive agenda, there is an emerging consensus that a deal between Labor and the Coalition would be the “least-worst” outcome.
Business Council of Australia chief executive Bran Black said support from the two major parties was crucial to ensuring the “longevity” of the reforms.
Mr Black said the potential for a Labor-Greens deal that included a climate trigger remained a “significant concern”.
He noted the Federal Government already had policies to deal with climate change, including the safeguard mechanism that limits pollution at major industrial sites.
Minerals Council of Australia chief executive Tania Constable said a Labor-Greens deal would inevitably include a climate trigger.
“A climate trigger will not benefit the climate; instead, it will slow down the energy transition, stifle economic growth, and drive much-needed investment out of Australia,” she said.
The prospect of a Labor-Coalition deal will alarm environmental groups, which have been pushing the Government to expand, rather than dilute, the powers of the EPA.
“We urge the government to work with all parliamentarians who are prepared to be constructive in creating an independent EPA that will be transparent in its decision making and accountable to the Australian public for enforcing the law,” Australian Conservation Foundation national biodiversity policy officer Brendan Sydes said.