Environmental policies are crucial for managing the impact of economic activities on the environment and ensuring sustainable development. In Australia, these policies encompass a range of regulations, market-based instruments, targets, and international agreements aimed at protecting natural resources and mitigating climate change.

What are Regulations?

Regulations are legal standards set by the government to control activities that affect the environment. These standards limit harmful activities, and ensure compliance with environmental protection measures. Key regulatory frameworks include:

Emission Standards

An example of regulations in the form of emission standards is the National Greenhouse and Energy Reporting (NGER) Scheme. This mandatory reporting framework requires large corporations to provide detailed accounts of their greenhouse gas emissions, energy production, and energy consumption. By establishing a transparent system for emissions monitoring, the NGER Scheme plays a crucial role in informing climate policy and driving corporate accountability for environmental impact. The scheme's scope is substantial, as evidenced by its 2023 reporting threshold: companies emitting over 25,000 tonnes of carbon dioxide equivalent per year are obligated to report their emissions under this programme.

Pollution Control

Australia's Clean Air Act plays a crucial role in regulating air quality and protecting public health. This legislation establishes specific limits on various air pollutants, including sulphur dioxide, nitrogen oxides, and particulate matter. The effectiveness of the Clean Air Act is evident in its tangible outcomes, particularly in urban areas across Australia where levels of major air pollutants have notably decreased since its implementation. This reduction in air pollution not only contributes to improved public health outcomes but also enhances overall quality of life in urban centres.

Waste Management

Australia's National Waste Policy is designed to tackle multiple aspects of waste management, including reducing overall waste generation, increasing recycling rates, and ensuring proper handling of hazardous materials. The effectiveness of this policy is evident in the improvements seen in recycling rates across the country. A notable example of this success is the increase in Australia's recycling rate for packaging waste, which rose from 55% in 2018 to 60% by 2022. This five percentage point improvement over four years demonstrates the policy's impact in driving positive change in waste management practices.

The following graph also displays this reduction in waste since 2018.

We can see from the graph that Australia has reduced its waste per capita. However, there is still significant room for improvement, to meet set waste management goals.

Market-Based Policies

Market-based policies use economic incentives to encourage businesses and individuals to reduce their environmental impact. These policies include carbon pricing, subsidies, and tradable permits.

Carbon Pricing:

Emissions Reduction Fund (ERF): The ERF provides financial incentives for businesses and landholders to adopt practices that reduce greenhouse gas emissions. For example, by 2023, the ERF had contracted 193 million tonnes of carbon abatement, supporting projects like reforestation and methane capture.

Renewable Energy Targets (RET):

Large-scale Renewable Energy Target (LRET): This target aims to generate 33,000 GWh of renewable energy by 2020, encouraging investment in renewable energy projects. As a result of the LRET, the share of renewable energy in Australia's electricity mix increased to 29% in 2021, up from 15% in 2014.

Tradable Permits:

Carbon Credits: Under the Carbon Farming Initiative, landholders can earn carbon credits for activities that sequester carbon or reduce emissions. These credits can be sold to businesses needing to offset their emissions. For example, by 2023, over 15 million carbon credits had been issued under the initiative, contributing to emission reductions and providing a new revenue stream for farmers.

Targets

Environmental targets set specific goals for reducing emissions, conserving biodiversity, and improving resource efficiency. These targets guide policy development and implementation. Australia has set various environmental targets to guide policy and measure progress:

Emissions Reduction Targets

Australia's commitment to the Paris Agreement is reflected in its ambitious target to reduce greenhouse gas emissions by 26-28% below 2005 levels by 2030. The nation has made significant strides towards this goal, with emissions reduced by approximately 20% from 2005 levels by 2022. This progress demonstrates Australia's dedication to global climate action and its efforts to transition towards a more sustainable, low-carbon economy.

Australia's current emissions reduction progress is displayed by the following graph.

We can see from the graph, that Australia as an economy is following a positive trend in reducing its emissions.

Renewable Energy Targets

Australia's Renewable Energy Target (RET) set an ambitious goal to source 33,000 GWh of the country's electricity from renewable sources by 2020. This initiative has proven highly successful, with Australia not only meeting but exceeding the target ahead of schedule. By 2021, renewable energy sources were contributing an impressive 29% to the national electricity mix, demonstrating the country's significant progress in transitioning towards cleaner energy production and underlining its commitment to sustainable power generation.

Waste Reduction:

Australia's National Waste Policy has established ambitious targets to address the country's waste management challenges. These include a 10% reduction in total waste generated per capita by 2030 and halving the amount of organic waste sent to landfill within the same timeframe. Progress towards these goals has been encouraging, with Australia achieving a 5% reduction in per capita waste generation by 2022. This halfway milestone demonstrates the effectiveness of the policy in driving behavioural changes and improving waste management practices across the nation, setting a positive trajectory for meeting the 2030 targets.

International Agreements

Australia participates in various international agreements that aim to address global environmental challenges. These agreements commit Australia to implementing policies and measures that contribute to international efforts.

Paris Agreement:

Australia's commitment to global climate action is exemplified by its ratification of the Paris Agreement in 2016. This landmark decision solidified the country's dedication to addressing climate change on an international scale. Initially, Australia set a target to reduce its emissions significantly below 2005 levels by 2030. However, in a noteworthy update in 2022, the country strengthened its commitment, pledging to reduce emissions by a more ambitious 43% below 2005 levels by 2030. This enhanced target demonstrates Australia's responsiveness to the urgency of climate action. Furthermore, Australia has set a long-term goal to achieve net zero emissions by 2050, aligning with global efforts to mitigate the impacts of climate change and transition to a sustainable, low-carbon future.

Montreal Protocol:

As a signatory to the Montreal Protocol, Australia has demonstrated its dedication to phasing out the production and consumption of ozone-depleting substances. The country's success in this area is exemplified by its complete phase-out of chlorofluorocarbons (CFCs) by 2010, a significant milestone that has contributed to the ongoing recovery of the ozone layer. Furthermore, Australia has continued its proactive stance by implementing the Kigali Amendment in 2020. This latest step focuses on phasing down hydrofluorocarbons (HFCs), powerful greenhouse gases that, while not directly harming the ozone layer, contribute significantly to global warming.

Convention on Biological Diversity (CBD):

This international agreement has guided the country's efforts to protect its unique and diverse ecosystems while promoting sustainable resource use. For example, under this commitment, falls the establishment of marine protected areas, which now cover an impressive 36% of Australia's marine environment. In 2022, Australia further strengthened its dedication to global biodiversity protection by signing the Kunming-Montreal Global Biodiversity Framework. This landmark agreement sets ambitious targets, including the protection of 30% of the planet's lands, coastal areas, and inland waters by 2030.