Environmental watchdog scraps strict carbon rules amid industry pressure

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Environmental watchdog scraps strict carbon rules amid industry pressure

Woodside's Pluto LNG project in the Pilbara lit up with lights at dusk.
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The Environmental Protection Authority (EPA) has withdrawn its contentious guidelines requiring major WA resources projects to completely offset their greenhouse gas emissions.

Top executives from some of the world's biggest resources companies met Premier Mark McGowan this morning to voice their strong opposition to the environmental watchdog's recommendations.

Mr McGowan rang the EPA's chairman Tom Hatton after the meeting to discuss industry's concerns.

He said shortly afterwards, the EPA informed him it would be withdrawing the guidelines while it consulted further with industry.

Mr McGowan denied the move would create more uncertainty for industry during the consultation period, or that he pressured Dr Hatton to make the move.

A tight head and shoulders shot of WA Premier Mark McGowan speaking wearing a black suit, white shirt and red tie.

"We had a conversation for maybe 15 minutes, 20 minutes about it, but he obviously knew there were some very significant problems," he said.

"He's a very good scientist and very committed to the environment, but he understood there were major issues that need to be dealt with."

'Further discussion merited': EPA

The EPA released a statement acknowledging uncertainty within industry over the scrapped changes.

"The EPA also appreciates that further discussion is merited to ensure that industry and stakeholders can anticipate how such guidelines can apply to proposals," the statement said.

But the watchdog maintained it was necessary for Western Australia to reduce its greenhouse gas emissions.

"Nor do we resile from our absolute right and obligation to provide advice to the Government on these matters," the statement said.

"However, it is important that the detail of such advice is more fully developed and the practical applications are well understood.

"As a result, the EPA will be undertaking further consultation with industry and stakeholders to ensure these guidelines can be practically implemented and that they are fully complementary to Commonwealth regulation."

U-turn follows angry response

The EPA's initial announcement on the guidelines sparked the ire of the resources industry, with the Chamber of Minerals and Energy among those to warn the guidelines could damage the WA economy.

An aerial shot of an LNG tanker off the Pilbara coast approaching the port.

Woodside chief executive Peter Coleman also took aim the proposal, describing the targets as unachievable.

"We don't actually know how we're going to meet them today is the issue we have, and that's why we're having … this reaction to it," Mr Coleman said at the time.

"Of course we want to be part of the solution to climate, and we're already investing heavily in that.

"But the reality is we sit here today and we don't have a solution and of course this is just bureaucratic red tape gone mad for us."

Mr Coleman said the company's Pluto and Browse projects were most at risk from such a policy.

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