PERTH (miningweekly.com) – The Western Australian government on Friday said that it would consult with the state’s Environmental Protection Authority (EPA) after the release of new guidelines to cut greenhouse gas (GHG) emissions.

The EPA said that the revised guidelines would help proponents of significant proposals in the state prepare for an environmental assessment by the EPA.

The revised guidelines outline the information required from proponents and how it may be considered by the EPA in its environmental impact assessment, and set a clear threshold for when GHG emissions from proposals will be considered by the EPA, and what mitigation measures will likely be required.

EPA chairperson Dr Tom Hatton said while the EPA board recognised the lead role of the commonwealth government in relation to Australia’s international obligations on reducing emissions, it noted there was a need to clarify and provide greater certainty in the EPA’s consideration of GHG emissions.

“Over the past two decades the EPA has recommended greenhouse gas abatement measures for around 40 proposals; however more needs to be done to limit global warming, consistent with the Paris Agreement,” Hatton said.

“The revised guidance clarifies what is required from proponents of significant proposals in the state, to avoid, reduce and offset their impacts and includes a more stringent approach to offsets.

“In the revised guidance the EPA has noted its intention to recommend offsets for proposals with direct emissions above 100 000 t of carbon-dioxide equivalent per annum.”

However, the new guidelines have raised concern from not only the business chamber, but also Premier Mark McGowen, who told ABC Radio that major investors had already raised concerns over the viability of future projects under the new guidelines.

“We have had some feedback from some of the major investors that it could impact future projects, and of course I have to create jobs and that is my number-one priority,” McGowan told ABC.

"We need to work with them to make sure we get through this issue."

While the Premier acknowledged that there was a need for a national solution to the GHG emissions issue, he said that the state government would not be endorsing the EPA guidelines.

“I am concerned that the EPA has gone a bit far here,” he said to ABC.

State Environment Minister Stephen Dawson said that consultation on the EPA guidelines would be undertaken to ensure that environmental, social and economic impacts were fully understood as part of the state government response.

“As a responsible state government it is important to ensure that projects have certainty for the long term,” Dawson said.

"The government is fully supportive of our job-creating liquefied natural gas industry and will listen to their views as part of our response to the EPA.

“It is important that we have a clear understanding of the social, economic and financial implications of the EPA's guidance. We will consult widely as part of our consideration of the EPA's guidance and respond in due course to provide certainty for the industry,” he added.

Meanwhile, the Chamber of Minerals and Energy of Western Australia said that it had “very strong reservations” about the imposition of a 100% offset for direct emissions.

“In particular, we think the notion of offsets being Western Australia-based offsets has massive potential downside risk. The offset market in both Western Australia and Australia is still developing. Were these EPA guidelines to be adopted as government policy, the Western Australia offset market would simply not cope,” said CME CEO Paul Everingham.

He added that in their current form, the EPA guidelines could do significant damage to the state’s economy.

“The guidelines as they stand will negatively impact Western Australian gas projects and potentially prevent some projects proceeding. This would put at risk billions of dollars of investment; thousands of cleaner energy jobs and damage the very industry that is helping Western Australia and the world to transition to a clean energy future.”