THE failure to pass the Rudd Government’s Emissions Trading Scheme legislation could cost the property development industry dearly, according to the Australian Property Institute.
The API Carbon spokesperson John Sheehan said the rejections means future developments may face the prospect of being burdened with a new layer of red tape and increased costs through a new Commonwealth approval process.
Sheehan said a new approval process, otherwise known as a ‘greenhouse trigger’, has been referred to in an Interim Report by Dr Allan Hawke on the review of the Environment Protection and Biodiversity Act 1999 (EPBC).
“The ‘greenhouse trigger’ would mean any new development that produced emissions above a certain level would require Commonwealth consent and approval under the EPBC Act.
“This means that as Australia moves to a lower carbon based economy, new developments may be hit with a double whammy of slower approval times and increased costs,” Sheehan continued.
Sheehan said the report stated that emissions would be avoided by mandating best practice technology, or offset.
And since the ETS bill failed to ball the Senate, the government may look at other measures, such as new approval processes for developments, to reduce carbon emissions in Australia.
Sheehan said the prospect of a ‘greenhouse trigger’ had significant implications for the property industry.
“Not only would new developments face the prospect of being bogged down in a slow approval process – there may also be increased costs through any conditions that were subsequently placed on their approval.
“If a greenhouse trigger was being considered, it was important the Commonwealth consulted closely with the property industry. There must be clear and rigid guidelines for referrals to the Commonwealth.
“The property industry must have certainty through a clear definition of ‘greenhouse’, and mandatory timeframes for determination of any referrals,” Sheehan said.
The API is waiting on the release of Dr Hawke’s final report in early 2010.
Propertyreview.com.au
