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ARTICLE · 21 JANUARY 2012

NSW Court of Appeal rejects implied limits in CO2 emissions case

A recent NSW case considered conditions on Environment Protection Licences.

AustraliaEnvironment

Key Points:

Environment Protection Licence conditions will not be easily implied, and in any event must be consistent with the statutory licensing regime under which the licence was created.

Environment protection licence-holders now have more certainty about what their licence conditions are, after the NSW Court of Appeal has struck out a climate change action group's attempt to imply restrictions on coal consumption and limits on CO2 emissions in a power station's licence (Macquarie Generation v Hodgson [2011] NSWCA 424; Clayton Utz acted for Macquarie Generation in the proceedings).

Peter Gray and Naomi Hodgson, two members of the action group known as Rising Tide, claimed that the Environment Protection Licence (EPL) issued to the Bayswater Power Station's operator, Macquarie Generation, is subject to implied statutory restrictions that limit permissible CO2 emissions into the atmosphere and restrict coal consumption at the Power Station.

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