Background: A long-awaited overhaul inches forward
Australia has waited years for a comprehensive rewrite of its environment laws. The current framework, widely described as outdated and fragmented, has drawn criticism from business groups seeking faster project approvals and from conservation advocates who fear weaker protections. After a landmark 2020 review led by Graeme Samuel, the sense of urgency only grew. Now, Environment Minister Murray Watt appears to be nearing a bipartisan agreement with the Coalition as the final sitting fortnight of the year approaches.
The negotiations signal a potential turning point: a path toward reform that could speed housing and energy developments while establishing clearer boundaries for when projects can proceed and when they must be paused for environmental review.
The key players and the proposed compromise
On one side sits Murray Watt, a minister who has spent months engaging with stakeholders and pursuing a reform agenda aligned with Labor’s priorities. On the other, Liberal counterpart Angie Bell, who has emerged as the Coalition’s focal point for negotiating a deal. Both sides describe the talks as constructive, with a shared sense that the time has come to fix a system that has effectively stalled growth in critical sectors.
A central feature under discussion is the Environment Protection Agency (EPA). The Coalition wants to ensure the final say on major projects rests with the minister, while the EPA would handle compliance and enforcement. The aim is to minimize duplication with state systems, reducing red tape for proponents and aligning federal oversight with practical, on-the-ground realities.
What the reform package could include
Officials and insiders have hinted at several core elements. A federal environment watchdog would oversee compliance, with an emphasis on transparency and accountability. The package also contemplates “go” and “no go” zones to delineate where construction can proceed and where it cannot, though the specifics of those zones remain under debate.
Additionally, the reforms would require project proponents to disclose Scope 1 and 2 emissions and present actionable abatement plans. This aligns with ongoing debates about climate accountability and the government’s ability to measure and reduce emissions across major developments.
Incentives and constraints: what could sway the Greens
One of the most contentious questions is whether the Greens will support the reforms if the package omits a climate trigger—a provision that could automatically block projects with high CO2 emissions. Watt indicated that a climate trigger is unlikely, instead signaling openness to Samuel’s approach that focuses on disclosures and abatements rather than an automatic veto. The Greens, led by Larissa Waters, have warned that any deal must meaningfully protect nature and that negotiations should remain open to the party’s input.
Why the deal matters now
Three years of “inaction” on environmental reform have slowed investment and project delivery in several key sectors. A successful pact with the Coalition could push legislation into Parliament during the final sitting weeks of the year, offering a clear mandate and a more coherent framework for both business and environmental stewardship. The government has stressed that reaching broad agreement is essential to ensure reforms are durable and effective, rather than hurried or partisan.
What lies ahead
As discussions continue, stakeholders remain focused on practical outcomes: speedier approvals for housing and energy projects, stronger environmental protections, and a more predictable regulatory environment. The next steps include finalizing the detailed functions of the EPA, ironing out how the federal law would interact with state regimes, and confirming how zones would be designated and reviewed.
Conclusion
With negotiations advancing, Australia stands at a pivotal moment for environmental governance. The possibility of a bipartisan deal that modernizes the environment laws while balancing economic and ecological considerations could redefine how Australia approaches development and conservation for years to come.
