Our climate is changing. Greenhouse gas (GHG) emissions contribute to climate change. The impacts of climate change pose a risk of harm to human health and the environment from pollution and waste. Climate change impacts the health and wellbeing of Traditional owners, cultural values and Country.
We are all responsible for taking climate action. Governments, industry, business, and community all have an important role.
The Victorian Government is working to reach net zero emissions by 2045.
EPA supports the government’s climate action. Our 2022-27 Strategic Plan outlines our commitment to act on climate change.
We have released our Environmental, Social and Governance Statement 2024 to 2027. It shows how we hold ourselves to the same standard we expect of those we regulate. This includes on climate change.
This Statement of Regulatory Intent (SRI) outlines our regulatory strategy on the causes and consequences of climate change. It clarifies:
- how we regulate the causes and consequences of climate change
- the focus of our efforts from 2025 to 2027 to minimise risks from the causes and consequences of climate change
- how we will use our regulatory tools and influence to achieve the best results.
Our role
The general environmental duty (GED) is key part of our prevention focused framework. It requires all Victorians to minimise the pollution and waste risks from their activities so far as reasonably practicable. The GED includes pollution and waste risks from the causes and consequences of climate change.
We regulate climate change through a range of laws:
- Environment Protection Act 2017
- The GED applies to:
- Risks of harm from GHG emissions – the GED applies to scope 1, 2 and 3 emissions1.
- Risks of harm from pollution and waste that are increased due to climate change.
- Waste management framework:
- We consider the principle of waste management hierarchy in our decision-making.
- Duty holders must consider alternatives to disposal (landfill) for some types of priority waste.
- The GED applies to:
- Climate Action Act 2017
- We must consider the contribution of emissions to Victoria and any potential climate change impacts in our licence and permit decisions.
- Other legislation, for example, the Planning and Environment Act 1987
- We have an opportunity to consider the causes and consequences of climate change and influence other decision-makers, including through our planning and advisory function.
Our regulatory approach(opens in a new window) uses a mix of encouragement and deterrence to motivate action and deliver improved outcomes for Victorian communities and the environment. It describes our work to help duty holders understand and control the risks from their activities to prevent harm. We already apply this approach in how we regulate climate change(opens in a new window), for example:
- Informing and educating – We let people know about their responsibility to prevent harm from pollution and waste. We explain how this responsibility relates to GHG emissions and risks that may be increased due to climate change.
- Setting standards – We assess risks from climate change in activities we authorise through our permissions (such as licences or permits).
- Supporting to comply – We have published materials to support businesses in reducing their scope 1, 2 and 3 GHG emissions under the GED (see Publication 2048(opens in a new window)). These materials help to clarify our expectations for businesses.
- Monitoring compliance – We monitor permissioned businesses to make sure they are complying with conditions, including risks from climate change. This includes visits to places like landfills and wastewater treatment plants.
- Enforcing the law – We issue remedial notices if businesses do not meet their responsibilities to reduce risks of harm. This includes from methane emissions.
- Encouraging higher performance – We work closely with other government agencies across Australia. We promote ways to prevent harm from climate change risks and raise awareness about climate change.
We will continue to deliver our core regulatory and enabling services to address risks from climate change.
Scope of this statement
This Statement of Regulatory Intent (SRI) outlines our regulatory strategy on the causes and consequences of climate change.
This SRI aims to not duplicate other regulatory schemes. It strives to be consistent with related policies and requirements. For example, Victoria’s Climate Change Strategy, the Circular Economy policy and the Australian Government’s National Greenhouse and Energy Reporting Scheme.
Our approach recognises the role of other regulators. It is consistent with other Australian states and territories where appropriate. This reduces confusion and costs for business regulated by others or those that work across jurisdictions.
The SRI lays out expectations for duty holders, which we will build on over time. We will implement the SRI from 2025 to 2027, in line with our Strategic Plan.
Focus areas
We have identified 3 priority focus areas:
- major emitters and energy users
- major industry with increased pollution and waste risks due to climate change
- circular economy.
We selected these based on their potential risk of harm and where we can make the biggest difference.
Businesses that are not within the focus of this SRI still have obligations under the Environment Protection Act 2017. This includes compliance with the GED. We may still visit businesses that are not a focus in the SRI to check they are managing their environmental risks. This includes risks from the causes and consequences of climate change.
Focus area 1: Major emitters and energy users
Major emitters and energy users emit roughly 61% of Victoria’s scope 1 emissions from all sectors. GHG emissions increase climate change risks and present a risk of harm to human health and the environment.
Who’s included?
Any corporation or facility that reports their scope 1 and 2 emissions to the NGER Scheme because they meet the reporting thresholds for activities in Victoria. This includes corporations or facilities covered by the Safeguard Mechanism(opens in a new window).
Both EPA-permissioned and non-permissioned businesses are in our focus.
Examples of permissioned major emitters and energy users that report to the NGER Scheme include businesses that hold an operating licence for:
- oil and gas refining
- industrial facilities
- wastewater treatment plants
- landfills
- facilities with onsite fuel combustion
- materials processing
- fossil fuel energy generation and more.
We routinely engage with these businesses, and they have a strong awareness of their obligations under our framework. Our focus includes both current and future operating licence holders.
Non-permissioned major emitters and energy users that report to the NGER Scheme include:
- large retail businesses
- telecommunications
- electricity transmission and distribution
- mining and extractive industries
- hospitals
- universities
- gas supply.
It is likely we have not interacted with many of them before and they are less aware of their obligations.
What will we do?
Our goal is to reduce GHG emissions from major emitters and energy users. This applies to all types of GHG emissions – scopes 1, 2 and 3.
Our focus will be that they include GHGs as a risk to human health and the environment under their GED and licence obligations. This means identifying:
- GHG emissions as a risk across all their activities
- Controls to minimise them
This should be included in their risk management and monitoring program if they hold an operating licence.
Initially, we will engage with them to understand their capability and communicate what we expect. We will also help them understand what they must do.
As their awareness and understanding grows, so will our expectations and actions. This may include enforcing non-compliance. This is especially the case for our permission holders who we already interact with. Any enforcement action we take will be consistent with our Compliance and Enforcement Policy(opens in a new window).
What does success look like?
Major emitters and energy users understand the impacts their GHG emissions have on human health and the environment. They minimise their risk of harm from their GHG emissions. They work proactively with us.
Focus area 2: Major industry with increased pollution and waste risks due to climate change
Climate change increases pollution and waste risks in many industries. For example, storm surges could cause spills from wastewater infrastructure and pollute waterways. Higher temperatures can increase fire risk at waste and resource recovery facilities. These can have wide impacts if not planned for and addressed.
Who’s included?
We will focus on major industries with an EPA permission that have increased pollution and waste risks due to climate change. These are all large businesses that operate at a significant scale.
We routinely interact with these businesses. They have strong knowledge of our framework.
For this SRI, this means businesses that hold or apply for EPA licences for:
- reportable priority waste management
- incineration
- e‑waste treatment
- municipal sewage treatment
- industrial wastewater treatment
- landfills
- organic waste processing
- waste to energy
- waste tyre storage
- waste and resource recovery
- coal processing
- oil or gas refining
- bulk storage
- power generation
- water desalination.
What will we do?
We will help these businesses understand they need to assess if climate change increases the risk of harm from their activities. We will support them understand how they can identify, assess, and minimise their climate-related risks in line with the GED.
We will also support permission applicants use the right risk-based assessment so they can plan and design appropriately. This will help them understand how climate change impacts their pollution and waste risks.
We will check that these businesses have developed climate resilience strategies in their risk management and monitoring programs.
Initially, we will engage with them to understand their capability and communicate what we expect. We will also help them understand what they must do.
As their awareness and understanding develops, so will our expectations and actions. This may include enforcing instances of non-compliance. Any enforcement action we take will be consistent with our Compliance and Enforcement Policy.
What does success look like?
These businesses are aware of and understand their obligations. They consider and address the risks from their pollution and waste that could be increased due to climate change. They work proactively with us.
Focus area 3: Circular Economy
Circular economy practices encourage the reuse of important resources and can reduce GHG emissions. For example, composting organic wastes keeps them out of landfill and avoids creating landfill gas. Recycling and reuse of e-waste lowers demand for materials, reducing waste disposal.
Our work supports the Victorian Government meet its circular economy goals. Our framework encourages a circular economy and can support climate objectives. It is informed by the waste management hierarchy. It provides an order of preference for managing wastes. Disposal (i.e., landfill disposal) is the least preferred. We consider the waste management hierarchy when making regulatory decisions.
People who manage or control priority wastes have a duty to investigate alternatives to disposal for that waste under section 140 of the Environment Protection Act 2017. This duty can help drive circular economy outcomes for priority wastes, such as organic waste, waste tyres and e-waste.
Our framework supports circularity. It provides pathways for the safe use of waste including waste determinations(opens in a new window), declarations of use(opens in a new window), and permissions (such as the A16 supply or use reportable waste permit). These mechanisms recognise that waste – including some wastes that may be classified as reportable priority waste – can still have value as a vital resource in a circular economy.
Who’s included?
This focus area captures EPA permission applicants that manage waste and businesses that manage or have control of priority waste such as organic wastes including biosolids.
What will we do?
We will engage with businesses to help them understand how their waste management decisions may contribute to climate change.
Our focus through the life of the SRI will be to support priority waste duty holders understand how to meet their duty to investigate alternatives to waste disposal, in line with circular economy principles.
We will collaborate with co-regulators and industry to understand barriers, promote circular economy practices, the safe use of waste, and support innovation.
We will continue to consider the waste management hierarchy when making regulatory decisions. We will continue to administer our waste and permissions frameworks to support the safe use of waste and will consider climate action goals when doing so.
What does success look like?
Business understands how their waste management decisions affect climate change. Business understands the relevance of climate change when investigating alternatives to waste disposal.
The following graphic shows how our SRI expectations may apply to a duty holder.
Review and evaluation
We always look for ways to improve regulatory practice and outcomes. We will regularly engage with industry, business, community and across government throughout the SRI’s life. Through this, we will receive feedback about what has worked well, what hasn’t, and what can be improved.
We will measure the success of the SRI across its life in line with our annual reporting on our priorities. This will help us understand how effective our actions were. From this, we can adapt, evolve, and improve the way we regulate the risks from the causes and consequences of climate change.
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