Revolution or evolution? Key reforms proposed to Australia’s national environmental laws – White & Case LLP

Report on Proposed Reforms to Australian Environmental Law and Alignment with Sustainable Development Goals

1.0 Introduction

On 30 October 2025, the Australian Government introduced a legislative package aimed at reforming the nation’s primary environmental law, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). This report analyses the three proposed Bills—the Environment Protection Reform Bill 2025, the National Environmental Protection Agency Bill 2025, and the Environment Information Australia Bill 2025—with a significant focus on their alignment with the United Nations Sustainable Development Goals (SDGs). These reforms represent the most substantial changes to Australia’s environmental framework in 25 years, seeking to address systemic failures in halting environmental decline and enhancing protections for biodiversity, directly contributing to SDG 15 (Life on Land) and SDG 14 (Life Below Water).

2.0 Enhanced Governance and Institutional Frameworks (SDG 16)

The proposed reforms aim to build effective, accountable, and inclusive institutions at the national level, a core target of SDG 16 (Peace, Justice and Strong Institutions). This is achieved through the establishment of new, specialised bodies.

2.1 Establishment of New Agencies

• National Environmental Protection Agency (NEPA): An independent statutory authority designed to handle environmental assessments, compliance, and enforcement. Its creation is intended to depoliticise regulatory functions and ensure robust, transparent oversight.
• Environment Information Australia (EIA): A body tasked with providing high-quality environmental data and analysis to the public and decision-makers, promoting evidence-based policy and accountability.
• Restoration Contributions Holder: An entity to manage financial contributions for environmental restoration, ensuring that funds from development impacts are strategically allocated to conservation and regeneration projects.

While the Minister for Environment will retain ultimate approval authority, the establishment of these agencies marks a significant step towards strengthening environmental governance in Australia.

3.0 A Standards-Based Approach to Environmental Protection

A central element of the reform is the introduction of legally enforceable National Environmental Standards. These standards are designed to provide clear, consistent, and outcome-focused requirements for environmental protection, underpinning progress across multiple SDGs.

3.1 Function and Impact of National Environmental Standards

• Clarity and Consistency: The Standards will define the environmental outcomes required for project approvals, ensuring decisions are not inconsistent with national objectives for protecting biodiversity (SDG 15), water resources (SDG 6, SDG 14), and other protected matters.
• No Environmental Regression: Any variation to a Standard must not result in a regression of environmental protections, creating a legislative safeguard for continuous improvement.
• Mandatory Consideration: Ministerial decisions on project approvals must not be inconsistent with a relevant National Environmental Standard, embedding sustainability principles directly into the approval process.

4.0 Integrated Landscape Management for Ecosystem Health (SDG 14 & SDG 15)

Addressing the criticism of siloed, project-by-project assessments, the reforms introduce bioregional plans to manage cumulative environmental impacts at a landscape and seascape scale. This strategic approach is fundamental to achieving the targets of SDG 14 (Life Below Water) and SDG 15 (Life on Land).

4.1 Bioregional Planning and Zoning

1. Development Zones: Designated areas where specified ‘priority actions’ can proceed under a streamlined registration process without requiring further EPBC Act approval. This supports SDG 9 (Industry, Innovation and Infrastructure) by providing investment certainty in appropriate locations.
2. Conservation Zones: ‘No-go’ areas where ‘restricted actions’ are prohibited to protect critical habitats and ecosystems, directly contributing to the conservation targets of SDG 15.
3. Restoration Measures: Plans must include measures to mitigate, repair, or compensate for damage caused by development, ensuring a holistic approach to regional environmental health.

5.0 Reforming Assessment and Approval Processes for Sustainability

The Bills propose significant changes to the assessment and approval of projects, embedding principles of climate responsibility, biodiversity conservation, and restorative action.

5.1 Greenhouse Gas Emissions and Climate Action (SDG 13)

While a ‘climate trigger’ was not included, the reforms mandate the disclosure of Scope 1 and 2 greenhouse gas emissions for relevant projects. Proponents must provide estimates and outline management strategies, increasing transparency and accountability in line with SDG 13 (Climate Action).

5.2 The ‘Net Gain’ Principle for Biodiversity (SDG 15)

A key reform is the shift from a ‘no net loss’ policy for environmental offsets to a legislated ‘net gain test’. This requires that any residual significant impact on a protected matter is compensated to leave the environment in a better state than before. This aligns with SDG 12 (Responsible Consumption and Production) and SDG 15 by promoting restorative development.

5.3 Streamlined Assessment Pathways

A new ‘streamlined assessment’ process will replace three existing assessment methods. This is intended to incentivise proponents to provide comprehensive information upfront, facilitating faster decisions for well-designed projects that meet National Environmental Standards. This efficiency supports sustainable economic development (SDG 8) without compromising environmental integrity.

5.4 Stricter Approval Criteria

A decision to approve a project must meet several new requirements, including:

• It must not be inconsistent with a National Environmental Standard.
• It must not have an ‘unacceptable impact’ on a protected matter.
• Any ‘residual significant impact’ must pass the ‘net gain test’.

6.0 National Interest Exemptions: A Potential Challenge to SDG Alignment

The reforms introduce a new ‘national interest proposal’ designation. This provision grants the Minister the power to approve a project even if it is inconsistent with National Environmental Standards, will have unacceptable impacts, or fails the net gain test. This broad discretion, based on criteria such as ‘defence, security or strategic interests’, presents a potential conflict with Australia’s commitment to the SDGs by allowing environmental protections to be overridden.

7.0 Conclusion: A Framework for Sustainable Development

The proposed legislative reforms represent a comprehensive effort to modernise Australia’s environmental laws. By establishing stronger institutions (SDG 16), implementing clear National Environmental Standards, adopting integrated landscape management (SDG 14 & 15), and introducing a ‘net gain’ principle for biodiversity (SDG 15), the framework is strongly aligned with the Sustainable Development Goals. However, the scope of national interest exemptions remains a significant concern that could undermine the integrity of the reforms and their contribution to achieving a sustainable future.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 13: Climate Action
   • The article discusses the potential inclusion of a “climate trigger” in the environmental legislation and mandates that project proponents provide estimates of their scope 1 and 2 greenhouse gas emissions. This directly connects to national efforts to manage and mitigate climate change impacts within the framework of environmental law.
2. SDG 14: Life Below Water
   • The proposed reforms include the creation of bioregional plans to manage environmental impacts at a “seascape scale.” This approach, along with protections for matters of national environmental significance which can include marine environments and species, aligns with the goal of conserving and sustainably using marine resources.
3. SDG 15: Life on Land
   • This is a central theme of the article. The reform aims to address the “decline in the Australian environment” by overhauling the Environment Protection and Biodiversity Conservation Act. Key elements like bioregional plans, the creation of “conservation zones,” the protection of “listed species,” halting biodiversity loss through a “net gain test,” and addressing cumulative impacts on a “landscape” scale are all directly related to protecting terrestrial ecosystems and biodiversity.
4. SDG 16: Peace, Justice and Strong Institutions
   • The article is fundamentally about strengthening environmental governance. It details the creation of new, independent institutions like the National Environmental Protection Agency (NEPA) to enhance compliance and enforcement. The establishment of clear National Environmental Standards, a transparent legislative regime for offsets, and significantly increased penalties are all measures aimed at building effective, accountable, and transparent institutions to uphold environmental law.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 13 (Climate Action):
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article highlights this by discussing the new requirement for proponents to provide “a reasonable estimate of the likely amount of scope 1 or 2 greenhouse gas emissions, and the strategies and measures… to manage those emissions.” This integrates climate considerations directly into the environmental impact assessment and approval process.
2. Under SDG 14 (Life Below Water) and SDG 15 (Life on Land):
   • Target 14.2 & 15.1: Sustainably manage and protect marine and terrestrial ecosystems. The proposed bioregional plans aim to “manage the environment at a landscape and seascape scale,” addressing cumulative impacts and moving away from a “piecemeal” project-by-project assessment, which directly supports the sustainable management of ecosystems.
   • Target 14.5 & 15.5: Conserve coastal and marine areas, reduce the degradation of natural habitats, and halt biodiversity loss. The reforms address this by establishing “conservation zones” as “‘no-go’ areas,” defining “unacceptable impact” on listed species, and introducing a “net gain test” to ensure that any residual significant impact is compensated to leave the environment “better off than before.”
   • Target 15.9: Integrate ecosystem and biodiversity values into national and local planning and development processes. The entire framework of the proposed reform, which requires all “controlled actions” to be assessed against National Environmental Standards and biodiversity protection criteria before approval, is a direct implementation of this target.
3. Under SDG 16 (Peace, Justice and Strong Institutions):
   • Target 16.3: Promote the rule of law at the national level. The reform aims to replace a complex and failing act with clearer, more enforceable environmental laws, including “significantly increased criminal and civil penalties” to ensure the rule of law is upheld.
   • Target 16.6: Develop effective, accountable and transparent institutions. The establishment of a “new National Environmental Protection Agency… as an independent regulator with enhanced compliance and enforcement powers” is a direct action towards building a more effective and accountable institution for environmental management. The shift from a policy-based offset model to a “legislative regime that aims to promote greater certainty and transparency” also supports this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 13 (Climate Action):
   • An implied indicator is the mandatory disclosure of “a reasonable estimate of the likely amount of scope 1 or 2 greenhouse gas emissions” for new projects. Progress can be measured by tracking the total estimated emissions from approved projects and the implementation of their proposed management strategies.
2. For SDG 14 (Life Below Water) and SDG 15 (Life on Land):
   • The establishment and area covered by “conservation zones” within bioregional plans serve as a direct indicator of protected areas.
   • The application of the “net gain test” is a key performance indicator. This can be measured by the number of projects required to meet this test and the total value of “restoration contribution charges” collected and allocated to “ecological conversation and regeneration projects.”
   • The number of approvals denied on the basis of causing an “unacceptable impact” on protected matters, such as listed species, would be an indicator of the new legislation’s effectiveness in preventing biodiversity loss.
3. For SDG 16 (Peace, Justice and Strong Institutions):
   • The number and type of enforcement actions taken by the new National Environmental Protection Agency (NEPA), such as the issuance of “environment protection orders,” would be a direct indicator of its effectiveness.
   • The value of “criminal and civil penalties” imposed for breaches of the EPBC Act would serve as an indicator of strengthened compliance and enforcement.
   • The number of National Environmental Standards developed and implemented is an indicator of the creation of a clear and consistent regulatory framework.

4. Table of SDGs, Targets, and Indicators

Source: whitecase.com