Climate Change (National Framework for Adaptation and Mitigation) Bill 2020

03/11/2020

The New South Wales Bar Association's Climate Change Panel recently considered the draft Climate Change (National Framework for Adaptation and Mitigation) Bill 2020, which has been released for public comment by Zali Steggall MP, the Federal member for Warringah.

At its meeting of 29 October 2020 the Bar Council resolved to:

(a) express support for the initiatives underpinning the Bill, subject to the following qualifications:

(i) a target of net zero emissions by 2050 (while better than nothing), is not sufficiently ambitious. The Bar Council believes that an interim target of a 50% reduction in emissions by 2030 merits endorsement on the ground that action over the next decade is critical to our long-term future;

(ii) the Bill currently requires relevant decision-makers to take into account (e.g.) “the best available academic peer reviewed research” (s 11(1)(a)) in making relevant decisions. This is commendable. However, the Bill currently also requires relevant decision-makers to take into account “any Technology Investment Roadmap” (s 11(1)(b)). The First Low Emissions Technology Statement was published by the Government in September 2020. It embraces an ongoing role for fossil fuels, and is widely considered to be in conflict with the best available academic peer reviewed research. Accordingly, the Bar Council believes that the proposed requirement to take into account “any Technology Investment Roadmap” (s 11(1)(b)) should be omitted from the Bill;

(iii) the Bill does not include any requirement that Australian listed companies disclose climate-related financial risks in a consistent and useful way, along the lines of (for example) the “TCFD” framework. The TCFD framework has been endorsed or supported by (amongst others) APRA, the Reserve Bank, ASIC and the ASX Corporate Governance Council. The Bar Council believes that a mandatory reporting requirement should be included in the Bill;

(b) not endorse the Bill itself, because of these qualifications.