Environmental Reform Bill Faces Legislative Impasse as Coalition, Greens Demand Major Changes
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The Albanese government’s signature environmental legislation faces an uncertain path to passage this week as both the Coalition and Greens demand significant concessions, creating a complex negotiating challenge for Environment Minister Murray Watt in the final parliamentary sitting week of 2025.
The environmental approval reforms, which would establish a new Environmental Protection Authority and overhaul the nation’s environmental assessment processes, represent the government’s biggest legislative priority before parliament rises. However, negotiations remain deadlocked despite last-minute concessions offered to both major parties.
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Watt projected confidence Monday morning that the laws would pass this week, announcing the government had made compromises to both the Coalition and Greens in the preceding 24 hours. The proposals include removing national interest exemptions for fossil fuel projects and implementing a three-year transition period for native forest logging to comply with new national standards.
“This is the week. This is the week that the Federal Parliament is going to finally pass important and much needed reforms to our national environment laws,” Watt told reporters. “We have made some concessions to both sides. We’ve indicated some of the areas that we are prepared to compromise with the Coalition and we’ve indicated some areas we’re prepared to compromise with the Greens.”
However, Shadow Environment Minister Angie Bell provided little indication the Coalition was prepared to support the legislation in its current form, stating the Opposition has identified seven minimum changes it will not budge on, with a secondary list of additional modifications.
“We have highlighted seven changes at a minimum that we would like to see, which we have obviously listed for the Minister,” Bell said. “There are more changes. There’s a secondary list of changes as well that the Minister has.”
The Coalition’s priority concerns include the scope and powers of the proposed new Environmental Protection Authority, the definition of “net gain” in environmental outcomes, and the definition of “unacceptable impacts” from development projects. These definitional questions carry significant implications for mining, agriculture, and infrastructure projects across Australia.
Greens environment spokesperson Sarah Hanson-Young indicated her party would not support the legislation this week, stating the concessions offered remain insufficient and proposing an alternative timeline that would see negotiations continue over the summer parliamentary recess.
“If the government won’t come to the party and fix it this week, then I put to the minister, let’s work over summer. Let’s roll up our sleeves. I’m happy to bring the beach towel if need be,” Hanson-Young said. “We can work over summer to get this done if the minister can’t get it done this week.”
The government’s offer to apply national standards to native forest logging within three years represents an attempt to secure Greens support, addressing one of the party’s longstanding environmental priorities. However, Greens members have indicated the timeline remains inadequate and the standards themselves require further strengthening.
The political dynamics create a challenging calculus for Watt, who must secure support from either the Coalition or Greens to pass the legislation through the Senate. The government lacks a Senate majority and requires crossbench support for any legislation to become law.
Former Greens leader Bob Brown, who remains an influential voice in environmental advocacy, delivered scathing criticism of the proposed reforms during an ABC Afternoon Briefing interview, characterizing them as inadequate to address the environmental challenges facing Australia.
“They’re hopeless if we’re really looking at protecting the environment in this age of environmental destruction,” Brown said. “You know, in my lifetime, three quarters of the world’s wildlife has been destroyed and they’re putting their foot on the accelerator.”
Brown specifically criticized the government’s approach to climate change powers within the legislation, noting that Watt has stated he does not want authority to intervene in projects based on climate impact.
“It’s also warm by more than one degree, and we know the biggest threat to the environment is global warming. And yet this minister says, I don’t want to have that power to do anything about it. It’s hopeless,” Brown stated.
The three-year transition period for native forest logging drew particular scorn from Brown, who argued the government could immediately halt logging operations in Tasmania and New South Wales under existing federal powers. He characterized native forest logging as the primary cause of extinction for multiple species, including koalas, greater gliders, swift parrots, and Tasmanian devils.
“In Tasmania and New South Wales, the Albanese government could stop that tomorrow. It’s the biggest cause of extinction of everything from koalas to greater gliders to critically endangered swift parrots and Tasmanian devils,” Brown said. “But the industry is being financed and subsidised by Canberra as well as by state governments, and we’re seeing this rapid spiral down.”
Brown noted that New Zealand ended native forest logging two decades ago under a Labour government responding to public pressure, suggesting similar action is both feasible and popular in Australia. He cited polling showing 80 percent of Labor voters support ending native forest logging immediately.
“The best this minister can do is say, well, we’ll allow three more years of destruction, and then all we’ll do is bring them up to the standards in this legislation, which you don’t understand, which haven’t been finalised and which are weak anyway,” Brown stated.
The former Greens leader characterized the government’s concessions as insufficient, comparing them to “changing those deck chairs on the Titanic” given the scale of environmental challenges facing the nation.
The legislative negotiations occur against a backdrop of increasing environmental pressures and international commitments on climate change and biodiversity protection. Australia faces ongoing scrutiny over its environmental record, particularly regarding species extinction rates and protection of native forests and marine environments.
Watt emphasized the reforms would streamline environmental approval processes while maintaining strong environmental protections, arguing the current system creates unnecessary delays without delivering superior environmental outcomes. The proposed Environmental Protection Authority would assume responsibility for environmental assessments currently handled by the federal Environment Department.
Business groups have generally supported the reforms, citing the need for more efficient and predictable environmental approval processes. However, environmental organizations remain divided, with some supporting the framework while others echo Brown’s concerns about inadequate protections.
The government appears to be prioritizing negotiations with the Coalition, believing agreement with the Opposition provides a more stable path to passage than relying on Greens support. However, Coalition demands for changes to EPA powers and environmental standards may prove difficult to reconcile with the government’s environmental objectives.
Industry stakeholders are closely monitoring the negotiations, particularly regarding provisions affecting mining, energy, and infrastructure projects. The definition of “net gain” in environmental outcomes could significantly impact project feasibility and approval timelines across multiple sectors.
The three-year timeline for applying national standards to native forest logging represents a compromise between immediate prohibition demanded by environmental advocates and indefinite continuation preferred by the forestry industry. However, the proposal satisfies neither camp, with environmentalists demanding immediate cessation and industry groups expressing concern about viability under new regulatory frameworks.
Bell suggested the Coalition would continue negotiating throughout the week but provided no indication that agreement was imminent. The Opposition’s extensive list of required changes suggests substantial differences remain between government proposals and Coalition expectations.
“There are seven changes at a minimum that we would like to see,” Bell reiterated, emphasizing the Opposition’s resolve on core demands.
Hanson-Young’s proposal to extend negotiations beyond this parliamentary sitting week provides the government with a potential escape route if agreement proves impossible this week. However, delaying passage until 2026 would represent a significant political setback for Albanese, who has prioritized the reforms as a key environmental achievement.
The legislative standoff highlights broader tensions in Australian environmental policy, where economic development priorities frequently collide with conservation objectives. The reforms attempt to balance these competing interests through revised assessment processes and standards, but whether this balance proves acceptable to either the Coalition or Greens remains uncertain.
Parliament is scheduled to rise later this week for the summer recess, creating a tight deadline for completing negotiations and securing passage. The government’s willingness to make concessions to both sides suggests Watt recognizes the political imperative of achieving passage, but the extent of remaining disagreements may prove insurmountable within available timeframes.
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