Environment and Sustainable Development 5 Minute Fix 58: National Environmental Standards, net zero, Murray-Darling Basin Plan

Commonwealth news

New National Environmental Standards – what you need to know

The Commonwealth Government has released the Second Draft of its National Environmental Standards for Matters of National Environmental Significant (MNES), and Environmental Offsets under the reformed EPBC Act 2025. These standards represent a fundamental shift in how environmental approvals will operate in Australia and, critically, they are statutory instruments carrying the full force of the law.

Key takeaways

The overarching change from the First to the Second Drafts is the replacement of ambitious language "should" with more mandatory language "must" throughout both standards. This means obligations previously discretionary under the old standards are now legally enforceable requirements.

Under the MNES Standard, actions will generally need to satisfy three tests:

• The approval cannot be inconsistent with any Standard;

• Actions cannot have an unacceptable impact on a MNES; and

• Actions with residual significant impacts must pass the "Net Gain" Test.

Under the Offsets Standard, proponents should be aware that:

• all offset activities must now be feasible, secured, commenced, and registered before the relevant impact occurs;

• a new uniform evidentiary framework requires a high level of confidence, supported by appropriate evidence, including expert evidence, peer-reviewed science, or other relevant evidence;

• offset activities must deliver measurable improvements against a defined baseline and achieve "Required Net Gain"; and

• Indigenous engagement has shifted from recommended consultation, to mandatory, effective, and genuine engagement.

These changes mean that decision-makers will have no discretion to approve projects that fall short of the Standards. Projects that previously may have secured approval through flexible assessment processes will now need to meet each mandatory threshold, or risk refusal. Proponents should expect longer lead times, greater upfront investment in scientific evidence and offset planning. Now is the time to test your project portfolio against these draft Standards. Consultation on Offsets is open until 10 June.

NSW news

Net Zero Commission releases report on extreme heat events

The Net Zero Commission's Heat Stress Spotlight Report, published on 21 April 2026, delivers a rigorous analysis of the impact of extreme heat and humidity in NSW. The Net Zero Commission was established under the Climate Change (Net Zero Future) Act 2023 (NSW), passed in November 2023. The Commission's function is to provide independent advice on the State's emissions target and support the objective of the Act, that NSW takes action to address and become more resilient to climate change risk.

The Commission's Heat Stress Spotlight Report sets out how NSW is prepared for, and responding to, the increasing impacts of extreme heat and humidity events, particularly, human health impacts. In its Report, the Commission observes that, despite being Australia's deadliest natural disaster, heat and humidity is currently underrecognized in policy and planning.

The Report identifies nine findings across five action areas and recommends measures to significantly strengthen NSW's approach to managing heat stress at a policy level which reflects its significant impact on the health and wellbeing of NSW communities.

Recommendations include:

• a coordinated, seasonal heat response plan for summer months;

• improved communication of declared heatwaves;

• strengthened public awareness and education treating heat like other natural hazards;

• systematic tracking and publication of data on heat-related deaths and illnesses by NSW Health;

• strategic planning reforms to ensure that neighbourhoods are designed and built to reduce the risk of increasing heat stress, including mandatory heat-risk assessments;

• revising policies and regulations, especially for social, Aboriginal and rental housing, to offer sufficient protections to tenants, including the introduction of minimum thermal safety and resilience requirements;

• strengthening SafeWork NSW regulations to prevent heat stress and minimise health and economic impacts on workers and businesses, including by mandating the development of business-level heat stress prevention plans for high-risk industries;

• recognising heat stress in existing state-wide adaptation and disaster risk reduction frameworks; and

• increasing resourcing to local communities to develop locally led responses.

The Minister for Climate Change must respond to the Commission's findings within six months.

Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026

In early May 2026, the New South Wales Government tabled the Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026. The legislative amendments proposed by the Bill seek to provide a framework to expedite planning assessments for high priority renewable energy projects in NSW by amending the Electricity Supply Act 1995 and the Environmental Planning and Assessment Act 1979.

Key changes

If passed in its current form, the Energy Legislation Bill will:

• give the Energy Minister the power by written order to declare an energy project or a class of energy projects to be a "priority energy project" (PEP);

• enable a PEP to be declared "State significant development" (SSD) or allow the Energy Minister to recommend to the Planning Minister that the PEP be declared "State significant infrastructure" (SSI) under the Environmental Planning and Assessment Act;

• clarify the Planning Minister's powers to direct the Independent Planning Commission (IPC); and

• provide the Planning Minister the power to determine the amount of land to be dedicated free of cost, the maximum or minimum monetary contributions, or other material public benefits to be provided by a developer under a planning agreement (or the method for doing so).

We examine these changes to project approvals and their impact on renewable energy projects in more depth here.

Victorian news

Victorian Government to review the Murray-Darling Basin Plan

The Murray-Darling Basin Authority (MDBA) is conducting its first review of the Murray-Darling Basin Plan since it commenced in 2012. The Basin Plan was first implemented to regulate the volume of water that can be taken from the Basin, following the Millennium drought.

As climate change accelerates, increasingly hot and dry conditions and further droughts and extreme weather events are forecast for the Basin. In anticipation of these impacts, the MDBA has recognised the need for contemporary evidence and climate science to be incorporated into the Basin Plan.

The MDBA's review will focus on four key areas, including climate change, First Nations involvement, sustainable water limits and regulatory design. These were incorporated into the MDBA's discussion paper which invited submissions until early May 2026. The MDBA has now received over 2,400 submissions in response.

The Victorian Government’s submission calls for an end to non-strategic water buybacks and stronger cooperation between federal and state governments to redirect funding towards high-value environmental outcomes. Additionally, the Victorian Government is calling for secure irrigation for agricultural production, recognition of First Nations peoples and regional communities, and stronger climate adaptation and transitional pathways for restoration projects.

Feedback will be individually considered and summarised in a consultation report due in late June. The MDBA will then release a final report detailing its findings and recommendations for adaptive measures to be incorporated into the Basin Plan.

Projects and clients which rely on water supply from the Murray-Darling Basin should monitor the status of the final report which is expected to be released before the end of the year

Queensland news

New water basin laws

The Queensland Government introduced the Regional Planning Interests (Condamine Alluvium) and Other Legislation Amendment Bill 2026 to Parliament on 25 March 2026. The Primary Industries and Resources Committee then undertook public consultation and consideration of the Bill. On 8 May 2026, the Committee tabled its report, recommending the passage of the Bill with amendments.

The Bill seeks to establish new requirements for coal seam gas (CSG) activities conducted by CSG resource authority holders within the proposed Condamine Alluvium CSG area. It defines the geographic boundaries of the "Condamine Alluvium CSG Area" (the Relevant Area) and aims to implement these requirements by amending the following legislation:

• Environmental Protection Act 1994;

• Regional Planning Interests Act 2014; and

• Mineral and Energy Resources (Common Provisions) Act 2014.

The proposed amendments will require CSG resource authority holders to demonstrate that new CSG projects will not cause detrimental, long-term impacts on the Condamine Alluvium. Key changes include:

• introducing a deemed condition in the Environmental Protection Act 1994 to prohibit the release of contaminants into waters that would result in water quality being inconsistent with relevant water quality objectives;

• removing the current requirement to obtain a regional interests development approval for CSG activities in the Relevant Area; and

• requiring CSG authority holders to enter into "conduct and compensation agreements" with private landowners or occupiers who may be affected by CSG activities.

Proponents of CSG projects within the Condamine Alluvium CSG area should actively monitor the Bill's progress and assess how the proposed amendments may affect future CSG activities. The Bill and the Committee's report are available on the Queensland Parliament website.

WA news

State plans to spend big $$ on environmental measures

The Cook Government unveiled its 2026–27 State Budget on 7 May 2026, combining significant environmental funding with the first practical application of the State Development Act 2025, which commenced on 19 February 2026.

Key initiatives include $1.4 billion for the Clean Energy Future Fund, supporting the Clean Energy Link – East project, which has been selected as a Priority Project under the Act. The Clean Energy Future Fund is a grant program designed to accelerate the State's transition to net-zero emissions by supporting innovative, high-value clean energy projects. The fund provides grants ranging from $100,000 to $4 million and is administered by the Department of Water and Environmental Regulation. The Clean Energy Link – East, Parron Maam Marang Farm, Kondinin Wind Farm, and Marri Wind Farm are the inaugural Priority Projects selected for designation under the Act, enabling (potentially) faster approvals and simplified regulatory processes to support economic diversification.

Also included is $606 million for the Dampier Seawater Desalination Plant, which is planned for the West Pilbara in a partnership with Rio Tinto. The expanded plant is set to double the current desalination capacity. $24.7 million is earmarked for biosecurity preparedness which will allow the Department of Primary Industries and Regional Development to be adequately resourced to monitor, prevent, and respond to threats that could impact agriculture, human health and the environment. The budget also calls for $8.5 million for a Fisheries Support Package, and $6.2 million for the Healthy Estuaries WA program.

Tasmania news

EPBC Approval granted for Transmission Development

The Australian Government has granted environmental approval under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) for the North West Transmission Developments project, marking a significant milestone in delivering the Marinus Link project.

The North West Transmission Developments project is a critical component of the broader Marinus Link initiative, which will connect Tasmania to the National Energy Market. The project involves upgrading existing transmission lines and constructing new infrastructure along a 162-kilometre corridor in Tasmania's north-west, linking the Marinus Link cable landing point with Tasmania's renewable energy generation assets.

Approval has been granted subject to 62 strict environmental conditions at the Commonwealth level, supplementing conditions already imposed by the Tasmanian Government through its own state-level approval process. Together, these conditions are designed to ensure that construction and operation of the project do not cause unacceptable impacts to species protected under both State and Federal environmental laws.

Minister for the Environment and Water Murray Watt stated that the transmission infrastructure will help connect Tasmania to the National Energy Market, unlocking more sources of cheap, clean power for Tasmanians and those on the mainland. Minister Watt added that the project, together with Marinus Link, will create "thousands of new local jobs" and support Australia's energy security by diversifying sources of power.

The EPBC Act decision follows the Tasmanian Planning Commission's approval of Stage 1 in in March 2026, and construction of the project is expected to commence shortly. The broader Project Marinus is forecast to save the National Electricity Market around $3 billion in future energy costs.

Land Use Planning Approvals set to change

The State Planning Office release the draft Land Use Planning and Approvals (Miscellaneous Amendments) Bill 2026. Key proposed amendments include:

• Allowing the State Planning Provisions (SPPs) to include statewide overlay maps (eg. for natural hazards such as landslip, flood-prone areas).

• Broadening the scope for making interim SPPs amendments on any matter recommended by the Tasmanian Planning Commission.

• Modifying the definition of "subdivision" in the LGBMPA to exclude long-term leases relating to renewable energy infrastructure or other utility infrastructure from being classified as a subdivision.

• Clarifying development application assessment timeframes and introducing savings provisions for the transition to the Tasmanian Planning Policies (TPPs, effective 1 July 2026).

Special thanks to Editor, Stacey Gray (Perth) and contributors Olivia Chudleigh (Brisbane), Kaylee Dawson (Perth), Jada Hatch (Sydney), Troy Hattrick (Perth), Grace McInerney (Sydney), and Chloe Northeast (Melbourne).