Navigating due diligence in environmental approvals

In Australia's dynamic landscape of environmental approvals, project due diligence is paramount. With evolving regulations in Commonwealth and State jurisdictions, being informed and proactive is essential for a project’s success.

A project due diligence specialist is needed to capture the complexity of a proposed project’s environmental approval from the site selection for infrastructure and environmental constraints, identifying strategic environmental approval pathways in a changing regulatory environment, and assessing risks and uncertainties that can determine whether the project is feasible and the potential impacts it may have.

Our Principal Due Diligence and Feasibility, Alanna Ryan, explains why specialists are needed to provide project due diligence advice.

Complexity environmental impact assessment

Environmental approvals are specific for each project to reflect the applicable Commonwealth, state and local government jurisdictions, applied to each project’s site’s constraints for infrastructure and the environment. The increase in mandatory requirements for environmental impact assessment fluxes as jurisdictions introduce and review climate change strategies, nature-positive reforms, and mandate transparent stakeholder consultation.

The complexity of environmental approvals in Australia can be shown through the interactions between Commonwealth regulation and state regulation.

Commonwealth

The Environment Protection and Biodiversity Conservation Act 1999 (Cth) assesses and regulates projects likely to significantly impact nationally protected matters, such as World Heritage Areas and threatened flora and fauna species and ecological communities.

The Commonwealth Nature Positive Reforms will create a regulatory body for national environmental standards and their enforcement. Consensus is required on the definition of ‘nature positive’ with the expectation it will be consistent with Australia’s international treaty obligations.

Other necessary key considerations for projects include Native Title and Aboriginal and Torres Strait Islander cultural heritage protections.

States and local councils

The specificity of a state's planning scheme requires a project’s due diligence to include options for planning approval pathways. The scope of an environmental impact assessment for a project depends upon the state’s planning scheme, current government policy, and anticipation of future government policy. Selection of a project’s preferred planning approval pathway in a project due diligence will be informed by project risks and opportunities that would impact the project’s schedule, costs and reputation of the organisation.

Government strategies

Government strategies at all levels prioritise investment, infrastructure and environmental protections. The priorities include renewable energy, public infrastructure and the circular economy. Identifying government strategies in project due diligence will facilitate early stakeholder engagement and streamline future environmental approvals.

Project feasibility

The presentation of the project’s environmental constraints and opportunities with planning approval pathways enables communication of the financial risk from environmental approvals in the project’s due diligence phase. The incorporation of environmental and social financial performance standards in a project’s due diligence may support the feasibility of the project. Completing project due diligence assists organisations in identifying and potentially mitigating the risks and uncertainties related to the project.

Onward’s team of environmental assessment and approvals experts can help you navigate the complexities of project due diligence. Get in touch with us at admin@onward.au