Environment Minister Murray Watt is set to meet with Liberal counterpart Angie Bell today, as both parties express cautious optimism about reaching an agreement to reform Australia’s outdated environmental laws. Negotiations with the Coalition, which is emerging as the preferred partner for these reforms, are expected to continue until legislation is introduced in Parliament during the final sitting fortnight of the year.

Senator Watt aims to garner broad support for laws designed to expedite housing and energy project developments. These laws would also establish designated "go" and "no go" zones for construction and create a federal environmental watchdog. However, he indicated that the government is unlikely to collaborate with the Greens to pass the legislation.

Key issues remain unresolved, particularly regarding the specific functions of the proposed Environment Protection Agency (EPA). Sources indicate that both sides believe negotiations are progressing positively. The Coalition seeks to ensure that the final decision on projects remains with the minister rather than the EPA, which would focus on compliance, while also minimizing duplication with state regulations.

In a statement, Bell emphasized the urgency of addressing the outdated laws, stating, "The Coalition welcomes the opportunity to work with the government in a bipartisan way on this legislation. We will engage in robust discussion because we understand the importance of getting the balance right … it is simply too important to get wrong."

Environmental reforms have been pending for over five years, following a landmark review by Graeme Samuel in 2020 that deemed the existing laws ineffective for both business interests and environmental protection. The previous Coalition government failed to implement proposed reforms, and an attempt by the Albanese government also fell short. Since his appointment, Senator Watt has reset the discussion, holding over 70 meetings with stakeholders since May.

After securing conditional support from major businesses for the establishment of an EPA, a significant hurdle from the last term, Senator Watt has expedited the timeline for the reforms, planning to introduce legislation in November. On Tuesday, he indicated that the government is unlikely to include a "climate trigger" in the new laws, which would allow for blocking projects that significantly increase CO2 emissions. When asked about this during Senate estimates, he stated, "I would say it is unlikely. Again, we haven't reached a final position on that."

Watt mentioned that the government is inclined to follow Samuel's recommendation, which suggests that project proponents disclose their scope one and two emissions and present an abatement plan, but not extend beyond that. He later reiterated, "I cannot see the government agreeing to a climate trigger."

Greens leader Larissa Waters responded to Watt's comments, suggesting they were merely strategic positioning. "I take Murray's statement with a grain of salt," she said. "I think the minister is just trying to keep his options open. They may well want to do a deal with the Liberals to have really bad environmental laws that don't protect nature and just give the go-ahead to coal and gas. That's open to them. What they should do is come and talk to the Greens."

The government maintains that similar provisions already exist in other legislation. Its proposed reforms would require projects to report their projected direct emissions and outline plans for reducing them over time. Stakeholders are still seeking clarity on how these emissions will be reported and the processes for establishing "go" and "no go" zones, which could allow construction without assessment or effectively ban development in certain areas.