Australia's total asset decommissioning liability is
estimated to exceed
$60 billion between 2020 and 2050. This issue is particularly
acute with many fossil fuel assets facing early retirement as a
result of the clean energy transition. Consequently,
decommissioning stranded or end-of-life assets is becoming an
increasingly significant consideration for businesses across a wide
range of industries.
Australia's piecemeal legislative framework for dealing with
decommissioning is, in many respects, confusing and inconsistent.
Presently, the framework consists of an industry-specific array of
federal and state-based legislation and regulations. For example,
the Offshore Electricity Infrastructure Act 2021 (Cth)
regulates decommissioning of offshore wind farms and associated
electricity transmission infrastructure, while the Water Act
1989 (Vic) regulates decommissioning of public and private
dams.
