The Commonwealth Government has recently announced an accelerated timeline to reform the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) – with legislation now expected to be introduced to Parliament by the end of 2025.
The reforms aim to remove barriers to productivity and streamline environmental approval pathways for national priority projects – including clean energy transition projects, housing and critical minerals.
While those outcomes will be welcome news for industry sectors constrained by material EPBC approval delays, the reforms are not without risk.
In particular, the government is yet to reveal details on how it intends to remove duplication in environmental approval pathways. Further, the new national environmental protection agency’s (National EPA) role in assessment and determination of EPBC Approvals is not confirmed. There is a risk that proponents may need to deal with a ‘new independent decision maker’ as part of that process.
Key triggers for reform
Proponents of projects which are likely to have a impact on nationally significant environmental matters (such as listed threatened flora and fauna species) are required to obtain approval under the EPBC Act.
That Cth approval pathway is in addition to any date/territory based environmental approvals required for the project – and has given rise to significant risk of increased costs, delay and uncertainty for major projects in Australia.
The Commonwealth Government’s August 2025 Economic Reform Roundtable identified strategic reform to the EPBC Act as a key objective to remove barriers to productivity and streamline environmental approvals for national priority industry sectors – such as the clean energy transition.
Key changes
While details of the legislative reforms are yet to be disclosed, they are intended to deliver more efficient and robust project assessment, stronger environmental protection and restoration, and greater accountability and transparency in decision making.
The key changes to the EPBC Act are likely to be directed at:
Establishing a National EPA.
Removing duplication within the environmental approvals and assessments system.
Introducing new national environmental standards to apply to environmental decision making across Australia.
Changes to environmental offset arrangements under the EPBC Act.
Key risks and opportunities
Any streamlining of environmental approval pathways will present a significant opportunity for proponents of major projects that require EPBC Approval. However, the reforms are not without risk.
There are no details of how the government intends to remove duplication within the existing regulatory framework – noting the current mechanisms in the EPBC Act (such as bilateral approval processes) have not mitigated the risk of material approval delays to acceptable levels.
The government may need to consider playing a more direct role in meeting proponent’s biodiversity offset obligations in return for a fee (like other arrangements adopted by state governments). The EPBC Act reforms may also benefit from mechanisms which ensure proponents are only required to prepare one environmental impact assessment for the project and that EPBC Act Approvals must be granted on terms consistent with the material State approval for certain national priority/critical projects.
The EPBC Act reform process is at a pivotal stage – and it will be critical for proponents and investors in projects that require EPBC Approvals to stay close to the industry consultation process and proposed changes.
Read our previous article on EPBC Act reform in relation to the mining and resources industry here.