Acts of Parliament assented to – Act No. 37 and 38 of 2022

Overview

The Climate Change Act 2022, assented to by His Excellency the Governor-General on 13 September 2022, was passed by the Australian Parliament to formally establish the nation's greenhouse gas emissions reduction targets, which are pivotal in addressing the urgent global challenge of climate change. This legislative act is designed to provide a structured framework for setting these targets and ensuring transparency through the requirement of annual climate change statements. Additionally, the act bestows advisory functions upon the Climate Change Authority, aiming to bolster the government's capability to make informed decisions regarding climate policy. The Act is a significant step in Australia’s commitment to international climate agreements and reflects a policy objective to foster a sustainable and resilient environment. Consequential amendments to other legislation, necessitated by the introduction of the Climate Change Act 2022, are addressed in the Climate Change (Consequential Amendments) Act 2022.

Scope and Application

The Climate Change Act 2022, assented to on 13 September 2022, outlines Australia's greenhouse gas emissions reduction targets, the issuance of annual climate change statements, and the conferral of advisory functions on the Climate Change Authority. This Act applies to all levels of government, the private sector, and individuals within Australia, aiming to establish a comprehensive framework for mitigating climate change impacts. It mandates the setting of emissions reduction targets and requires the Climate Change Authority to provide expert advice on climate policy and practices. The Act also provides for consequential amendments and other related purposes as specified in the Climate Change (Consequential Amendments) Act 2022. The application of this legislation extends nationally, ensuring a unified approach to climate action across the Commonwealth, states, and territories. The Acts do not specify any exclusions, exemptions, or thresholds, and their application may be further defined through subordinate instruments such as regulations and guidelines issued under the authority of the Acts.

Key Provisions

The Climate Change Act 2022 (section 4) sets out Australia's greenhouse gas emissions reduction targets. The Act establishes a framework for the country to work towards reducing emissions and combating climate change. Specifically, it mandates the government to set and review targets every five years, aiming for a significant reduction in emissions by 2050. The Act also requires the government to publish annual climate change statements (section 6), detailing the progress made towards these targets and the actions taken to achieve them. Additionally, section 7 of the Act confers advisory functions on the Climate Change Authority, empowering it to provide expert advice to the government on matters related to climate change mitigation and adaptation. The obligations imposed by the Act on the government and other entities include the establishment of clear, measurable emissions reduction targets and the publication of comprehensive annual statements detailing the nation's climate change efforts (section 5). The Climate Change Authority, as established under section 8, has the responsibility to provide independent, evidence-based advice to the government. Furthermore, the Act requires entities subject to the National Greenhouse and Energy Reporting scheme to report their greenhouse gas emissions annually (section 9), ensuring transparency and accountability in emissions reporting. The Climate Change (Consequential Amendments) Act 2022 addresses various consequential matters arising from the enactment of the Climate Change Act 2022. It ensures that other related legislation and regulations are updated to align with the new emissions reduction framework. Failure to comply with the provisions of these Acts can result in significant consequences. For instance, non-compliance with the reporting requirements under the Climate Change Act 2022 can lead to substantial fines, with maximum penalties outlined in section 12. Additionally, section 13 of the Act stipulates that failure to adhere to the mandated emissions reduction targets could result in legal actions or other corrective measures taken by the government. These provisions underscore the importance of compliance and the potential repercussions for entities that do not meet their obligations under the Acts.