The Conservation Council of WA (CCWA) said media reports highlighting mining giant BHP’s “gross dereliction” of its commitments to emissions reduction and a move to renewable energy, was a symptom of weak government climate policy.
CCWA Executive Director Matt Roberts warned that without stronger climate targets to hold companies to account, we would not see significant cuts to Australia's emissions.
“Despite BHP stating in 2022 that action on climate change in WA was ‘urgent’, with any delay causing ‘reputational damage’, last night’s report showed the company has wound-back its clean energy initiatives, including the replacement of diesel trucks with electric vehicles,” Mr Roberts said.
"This total lack of ambition – despite BHP documents revealing an urgent need to decarbonise in order to maintain its social license – clearly indicates that profits and cost savings will always come first, unless we have strong government guardrails in place.
“We cannot can't rely on BHP, or any other fossil fuel company to voluntarily work towards net-zero emissions targets - we need strong government policy. It’s time for less carrot and more stick if we have any hope of addressing our climate crisis.
“WA is the only state without a Climate Act, an interim emissions reduction target, or a renewable energy target – it is little wonder why we are the only state where emissions continue to rise. BHP’s roll-back of industrial decarbonisation initiatives is a clear example of why we need stronger climate laws in WA.
“The Cook government has systematically wound back the regulators' ability to require companies to reduce emissions by slashing the greenhouse gas emissions policy in WA, instead deferring to the federal Safeguard Mechanism (SGM) which is clearly failing.
“Despite rising emissions, companies are getting carbon credits under the SGM because it is flawed in its design - a farce, in fact, when we need total emissions reduction, not accounting tricks to shirk responsibility.
“In 2024 the WA Labor government handballed emissions reduction to the Federal Government under the SGM. Unlike our state guidelines, the SGM lets emitters buy their way to emit and does not require best practice, or a GHG management plan.
"CWA is calling on the State Government to deliver a WA Climate Change Act with 1.5C-aligned emissions reduction targets, implement a renewable energy target and reinstate the government's ability to require companies to reduce emissions.”
Mr Roberts said updated official Australian emissions figures released in April showed Western Australia recording its third consecutive year of increased emissions.
He said the 2024 data showed WA’s emissions had now increased nearly 20 per cent since 2005, with a 63% increase within the state’s energy sector.
“WA’s overall emissions were the highest ever recorded,” he said.
“Year on year the community is responding to real climate challenges from increasingly intense cyclones, drying in the South West and unprecedented fire seasons - there is a huge disconnect between the climate crisis and real climate action.
“The 2024 emissions data reveals a record high 90.94 million tonnes of greenhouse gas emissions (GHG) - an increase of more than two per cent from the previous year. This is a clear indication that the Safeguard Mechanism (SGM) is not an effective tool to deliver the emissions reduction needed.
“Twenty major WA emitters have been under review by the Environmental Protection Authority (EPA) for more than a year following the controversial decision by the State Government to stop regulating emissions reduction under the Greenhouse Gas Environmental Factor Guidelines.
“We are eager to see whether the government will choose to cut requirements for these 20 polluters and are calling on them to keep the strongest emissions reduction conditions in place.
“The government can choose to sit on his hands while our emissions continue to rise, or it can take action and play its role in addressing the climate crisis.”
BACKGROUND BRIEFING NOTES
Summary on SGM data:
- WA’s SGM emissions (47.23 Mt CO2-e) exceeded its baseline emissions number (46.17Mt CO2-e) by 2.29%.
- Emissions from 56 WA facilities exceeded their baseline.
- A combined 2,382,176 Safeguard Mechanism Credit units (SMCs) and Australian Carbon Credit Units (ACCUs) were issued to 15 WA facilities, valued at $88,283,4421
- Shell, through its FLNG facility were awarded 1,421,460 SMCs, valued at over $52 million, despite the facility’s emissions increasing by over 400,000 t CO2-e over the most recent 12-month reporting period
- WA is home to four of Australia’s seven most polluting SGM facilities, including the most polluting facility (Chevron’s Gorgon LNG plant) and the fourth-most polluting (Woodside’s North WestShelf Project).
- In total, WA’s SGM facilities accounted for 52 per cent of the state's total emissions.
- 35 WA facilities had an increase in emissions over the latest 12-month reporting period.
- 33 WA facilities have increased their emissions since the Safeguard Mechanism was reformed two years ago, despite a default decline rate of 4.9% pa over two years resulting in an emissions reduction contribution (used to calculate the emissions baseline) of 0.902 for most facilities (this effectively means facility emissions should be 10% lower than they were two years ago (at constant production)).
- For exceeding the emissions baseline for its North WestShelf facility by 921,092 t CO2-e, Woodside surrendered a combined 921,095 ACCUs and SMCs valued at $34,135,780.
- For exceeding the emissions baseline for its Gorgon facility by 478,414 t CO2-e, Chevron surrendered the equivalent in ACCUs, valued at $17,730,022.
- In WA, total safeguard facility emissions fell from 48.03 Mt CO2-e to 47.23Mt CO2-e (1.65%) thanks to external circumstances unrelated to the Safeguard Mechanism.
WA’s record totals were driven primarily by emissions from the energy sector - 81.128 million tonnes of CO2-e - a large proportion of which was produced by WA’s gas industry. The stark reality is that WA’s energy emissions have increased by 63 per cent since 2005.
The official figures confirm reports that WA’s emissions were on track to increase, following internal modelling by the WA government indicating the state was not on track to achieve its net-zero by 2050 target.
Increases in WA’s emissions reflect the State Government’s refusal to set a 2030 emissions reduction target; continued undermining of net-zero ambitions; and not doing its fair share to help Australia achieve its 43 per cent emissions reductions goal by 2030.
Further background on WA’s GHG Environmental Factor Guidelines
- 2019 – the EPA proposed tough new guidelines requiring LNG projects to offset 100% of their emissions. Met with intense industry backlash.
- 2019 – The EPA withdrew these guidelines within months
- 2020 – Final Guidelines releasedwhich were non-binding and not mandatory – criticised by industry for being burdensome and environment sector for being weak
- 2023 – It was revealed that the former Premier Mark McGowan had pressured the EPA chair to pull the guidelines
- 2024 – Former EnvironmentMinister Reece Whitby effectively gutted the role of the EPA in setting conditions on emissions reduction.
- 2024 – the Minister under s46 of the EP Act referred WA top 20 GHG emitting projects back to the EPA to review the emissions reduction conditions
*Further background on the GHG policies is available on request.
ENDS
Media contact: John Cooke – 0433 679 780