Executive summary

In November 2025, the Commonwealth Parliament passed significant reforms to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). These reforms aim to strengthen environmental protection and restoration while delivering more efficient, robust, and transparent project assessments. The Clean Energy Investor Group (CEIG), which represents domestic and global renewable energy developers with a combined portfolio value of around $38 billion and more than 16GW of installed capacity, emphasizes that the success of these reforms depends on effective implementation and the finalisation of a supportive regulatory framework.

Background

The CEIG engaged Herbert Smith Freehills Kramer (HSF Kramer) to assess the risks and opportunities for the renewable energy sector in the final stages of the EPBC Act reforms. This report follows a 2024 review and focuses on priorities for the National Environmental Protection Agency (National EPA) and the Environment Department throughout the remainder of 2026. The objective is to ensure that the reforms deliver on their promise of faster, better decision-making for renewable energy projects, which are critical to meeting Australia’s legislated greenhouse gas reduction targets.

Progress from our previous 2024 report

The report provides a progress scorecard on ten “quick wins” identified in 2024. Significant improvement was noted in the referrals process, where average validation timeframes previously exceeded 70 days. However, progress remains stagnant in several areas, including improving consistency in assessment approaches, issuing Requests for Information (RFIs) only when necessary, and improving approval conditions. Efforts regarding environmental offsets show some progress, as offsets are now incorporated directly into the EPBC Act. Other areas, such as landscape-scale assessments for Renewable Energy Zones (REZs) and resourcing, are identified as “one to watch.”

Key issues for industry under the EPBC Act

Several longstanding challenges persist for the renewable energy sector. These include inconsistent definitions of “habitat,” overly conservative and precautionary decision-making driven by data gaps, and difficulties in delivering suitable environmental offsets with certainty. There is also a notable tension between the stated objectives for renewable energy generation and the practical assessment and approval outcomes under the Act. Addressing these issues is considered critical to the practical success of the new legislative framework.

Overview of the reforms

The Environment Protection Reform Act 2025 (Cth) introduced extensive changes that are commencing in tranches. Key changes include additional legislative tests for approval decisions. Decisions must now be consistent with National Environmental Standards (NES), ensure that actions do not have an unacceptable impact, and pass a net gain test for significant residual impacts. The NES, currently under development, will cover matters of national environmental significance, offsets, community consultation, data, and First Nations engagement.

Higher thresholds – new tests

The new “unacceptable impact” test creates a strict threshold for approval that applies in the absence of economic and social considerations. For instance, an impact is deemed unacceptable if it seriously impairs the viability of a listed migratory species or causes serious damage to irreplaceable habitat. The “net gain test” requires proponents to secure offsets that compensate for residual impacts to a higher standard than the previous “no net loss” approach. This may involve using the Restoration Contributions Holder to pay a restoration contribution charge.

New assessment processes

A new “Streamlined Assessment” pathway allows for approval decisions within 30 business days for projects other than fossil fuel developments, provided sufficient information is provided. This pathway requires proponents to “front load” their referral documentation to demonstrate compliance with the NES and the net gain test. It is expected to be particularly useful for projects with clear and well-defined impacts, such as solar farms or Battery Energy Storage Systems (BESS).

Recommendations

The report sets out several recommendations categorized into two priority groups: implementation and the finalisation of regulatory instruments.

Implementing and administering the framework

CEIG recommends that the National EPA develop a “one view” approach to assessment and conditioning within 12 months to avoid inconsistent outcomes. Improved data and knowledge are also required; the 2026-2027 Commonwealth Budget allocated $105.9 million to enable simpler, faster approvals through better data access and the deployment of AI. Additionally, the Restoration Contributions Holder should be utilised within 24 months to deliver coordinated, strategic environmental offsets at scale, focusing on at-risk species like the Koala and Greater Glider.

Finalising regulatory instruments and sector-specific guidance

Regulatory instruments should be drafted to provide objective, clear guidance rather than adding subjectivity. The CEIG calls for the urgent finalisation of rules supporting the streamlined assessment pathway and the formalisation of a pre-lodgement advice service. Bilateral assessment agreements with States and Territories should be negotiated as a priority, noting the December 2026 timeframe indicated in the Western Australian MOU. Furthermore, guidance for landscape-scale assessments should be produced to provide certainty for Renewable Energy Zones.

Closing remarks

The success of the EPBC Act reforms hinges on consistent administration and the completion of workable regulatory instruments. CEIG remains committed to working constructively with the Government and National EPA to achieve stronger environmental outcomes while ensuring the timely delivery of renewable energy projects necessary for the energy transition.