Key Points:
The Carbon Price Mechanism is a relevant matter for a
consent authority to consider in deciding to impose conditions with
respect to GHG emissions.
The power to control the emission of greenhouse gases from
projects such as mines has always been available to state planning
authorities and environmental regulators through imposition of
appropriate conditions of approval.
The impending commencement of the Carbon Price Mechanism from 1
July 2012 however raises new issues as to whether this is still
appropriate or indeed necessary. Indeed, there is the potential for
Constitutional issues to arise between the Clean Energy Act 2011
(which establishes the Carbon Price Mechanism to introduce a market
mechanism providing incentives for the reduction of GHG emissions
through low-cost abatement) and state-based regulatory regimes.
