Government Presents Competing Amendment Packages to Coalition and Greens Over Fossil Fuel Fast-Tracking
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Environment Minister Murray Watt has confirmed he’s negotiating with two separate amendment packages—offering five changes to the Coalition and six different proposals to the Greens—as the government’s environmental law reforms hinge on fundamentally incompatible demands over fast-tracking fossil fuel projects.
The dual-track negotiation strategy exposes deep divisions over how Australia should balance environmental protection with resource sector development, with the Coalition seeking business-friendly changes while Greens amendments would explicitly limit streamlined approvals for coal and gas projects.
“It’s no surprise that the sort of amendments the Coalition are seeking are things that they would say are better for business, and it’s no surprise the Greens are looking for amendments that they say are better for the environment,” Watt told Sky News today.
The contrasting packages center on proposed fast-tracking mechanisms in the Nature Positive reforms, particularly a controversial “national interest approval” that would allow ministerial sign-off on projects even if they don’t meet environmental standards—a power the government is now prepared to deny fossil fuel developers.
Opposition Leader Sussan Ley criticized the split-strategy approach as evidence Watt is “after a political fix” rather than substantive reform. “You’ve now got Murray Watt standing with two separate amendments, one in each hand, saying, I don’t mind who I do this deal with. Could be the Greens, could be the Coalition, just give me a deal,” she said.
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The National Interest Approval Controversy
At the heart of the Greens amendments is exclusion of fossil fuel projects from a proposed national interest approval mechanism that would give ministers power to greenlight developments regardless of environmental impacts.
“We’ve said we are prepared to exclude fossil fuel projects from getting that national interest approval,” Watt confirmed. “I’ve always said I don’t think it’s reasonable or even possible that a particular fossil fuel project could ever be justified on the national interest so that it doesn’t have to meet environmental standards.”
The provision was originally intended for defense installations, national security facilities, and similar government projects where environmental considerations might be overridden for strategic reasons.
Under the proposed system, a minister could invoke national interest provisions to approve projects that would otherwise fail environmental assessments—for example, military bases in sensitive habitats or critical infrastructure requiring rapid deployment.
Watt argued fossil fuel executives would struggle to justify individual projects as nationally significant enough to warrant bypassing all environmental protections. “I think it’s more than those defence and national security situations that people would accept that there might be an argument to override standards for those kind of things,” he said.
What Are Fast-Tracking Provisions?
The Nature Positive reforms include several new pathways designed to speed approval timeframes for priority projects, reducing assessment periods from current averages of 3-5 years to targeted timeframes of 12-18 months for streamlined categories.
These provisions include:
Streamlined assessment pathways for housing developments and renewable energy projects
National interest approvals for strategically important projects
Priority project designation allowing ministerial prioritization of assessments
Early engagement mechanisms to identify issues before formal applications
Current environmental approval processes under the 1999 EPBC Act can take multiple years, with major resource projects averaging 3.5 years from initial referral to final decision according to federal data. Housing developments near protected areas and renewable energy installations face similar delays.
The fast-tracking mechanisms aim to reduce these timeframes while maintaining environmental protection standards—though critics across the political spectrum question whether both objectives can be achieved simultaneously.
Coalition’s Gas Security Concerns
Ley warned that excluding fossil fuel projects from fast-tracking could jeopardize Australia’s energy security during what she called a “clunky” renewable transition.
“If there’s a gas project that we need to get up to shore up supply in Australia during a transition, isn’t that something you’d want to have in your back pocket?” she said, questioning why the government would voluntarily constrain its options.
The Coalition has made gas expansion central to its energy policy, announcing this week an East Coast gas reservation scheme requiring new projects to reserve portions of production for domestic markets. Ley argued fast-tracking provisions could prove essential for rapidly deploying gas projects if supply shortfalls emerge.
“Part of our energy future is LNG,” Ley said. “We believe that we can do a lot better when it comes to energy affordability for our households and businesses.”
Australia’s east coast gas market has experienced periodic supply tightness, with wholesale prices spiking during winter demand peaks. The Australian Energy Market Operator has warned of potential shortfalls in coming years as aging coal plants retire faster than replacement capacity comes online.
Government’s Gas Position
Watt insisted the amendments wouldn’t prevent necessary gas projects from proceeding, arguing they would simply face standard environmental approval processes rather than expedited pathways.
“This is not to say that fossil fuel projects can’t go ahead. They would continue to go ahead under the current kind of systems,” he said. “But it’s about saying that those new fast-tracking processes that we’ve introduced for approvals in shorter periods of time, they’re more designed for things like housing and renewables.”
The minister emphasized that fossil fuel projects never would have qualified for the most accelerated approval pathways regardless. “The types of new fast-tracking processes that are included in the legislation would never have been able to be accessed by big fossil fuel projects anyway,” he said.
Labor has supported continued gas development as a transition fuel while pursuing 2030 emissions reduction targets of 43% below 2005 levels and 2050 net-zero commitments. The government approved several major gas projects in its first two years including Santos’s $5.1 billion Barossa development off northern Australia.
Watt noted the government is pursuing its own gas reservation policy, making Coalition criticisms somewhat paradoxical. “I wonder how that fits in with some of those green amendments,” he said, referring to the Coalition’s reservation proposal.
Greens’ Environmental Priorities
The six Greens amendments reportedly focus on strengthening climate impact considerations in environmental assessments, excluding fossil fuel developments from fast-tracking, and potentially establishing harder carbon budget limits for approved projects.
Greens negotiators have not publicly detailed their specific requests, though the party’s longstanding position opposes new coal and gas developments as incompatible with Paris Agreement temperature limits.
The party holds four Senate seats in the current Parliament, making them kingmakers for government legislation that lacks Coalition support. Labor requires either Coalition backing or support from the Greens plus independent crossbenchers to pass Senate legislation.
Business and Industry Response
Business organizations have expressed concerns about uncertainty created by competing amendment packages and the risk that Greens-backed changes could restrict resource sector approvals.
The Business Council of Australia has advocated for bipartisan reforms that provide investment certainty regardless of which party holds government. “There are benefits in the major parties of government reaching a deal on an item like this,” Watt acknowledged, echoing comments from Treasurer Jim Chalmers last week.
However, the Minerals Council of Australia has warned that excluding fossil fuel projects from streamlined approvals while fast-tracking renewables creates unequal treatment across energy sectors. The organization represents companies including BHP, Rio Tinto, and major coal and gas producers.
Environmental groups including the Australian Conservation Foundation have urged Labor to negotiate with the Greens rather than the Coalition, arguing fossil fuel exclusions are essential for the legislation to deliver genuine environmental protection.
Negotiation Dynamics and Complaints
Both sides have complained about the negotiation process, with Ley calling it “mismanaged” and Watt criticizing Coalition representatives for constantly expanding amendment lists and unclear negotiating authority.
“One of the problems that we’ve had with the negotiations with the Coalition all the way along is the fact that they haven’t been able to focus on what they want because they’ve obviously been focusing on their internals,” Watt said, referring to recent leadership speculation around Peter Dutton’s position.
The minister said he now faces “multiple people from the Coalition seeking to negotiate with me rather than one,” though he declined to name specific MPs. “Every time I meet with them, there are additional [demands],” he said.
Ley countered that Shadow Environment Minister Angie Bell and Senate environment spokesperson Jonno Duniam have consistently communicated Coalition positions through proper channels. “We’ve been consistent for six months,” Ley said. “There’s no surprises in where we stand and what’s important to us.”
What Happens Next
With Parliament sitting through Thursday, Watt must choose between three options: finalize a Coalition deal that preserves fossil fuel fast-tracking options, accept Greens amendments that explicitly exclude them, or abandon the legislation until 2026.
Watt confirmed he remains in active negotiations with both parties. “I am still in negotiations with them. We are still willing to do a deal with the Coalition,” he said. “But the reality is we are also having discussions with the Greens and putting forward possible amendments to them as well.”
The minister has briefed Prime Minister Albanese on negotiation status and expects eventual leader-level involvement, though no formal leader-to-leader talks have been scheduled despite Ley’s public offer.
If no deal emerges this week, the legislation dies until at least February 2026—just months before a federal election where environmental policy and resource sector management will feature prominently in both parties’ campaigns.
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