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ARTICLE · 21 OCTOBER 2021

Scope 3 emissions: a regulatory cloud soon to lift?

Corrs Chambers Westgarth
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This case further develops the law regarding Scope 3 emissions, with implications for future fossil fuel developments.

AustraliaEnvironment
Louise Camenzuli
Louise Camenzuli
Max Newman
Max Newman
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The decision in Mullaley Gas and Pipeline Accord Inc v Santos NSW (Eastern) Pty Ltd [2021] NSWLEC 110 (MGPA v Santos) on 18 October 2021 has further developed the law regarding Scope 3 emissions and is relevant to the assessment of future fossil fuel developments.

In this article, we consider the regulatory frameworks related to Scope 3 emissions in Australia and discuss the evolution of the case law in this area. A detailed summary of the decision in MGPA v Santos, including its implications for proponents of fossil fuel developments and other major projects, is available here.

There is currently no requirement in Australia for companies to offset Scope 3 or 'downstream' greenhouse gas (GHG) emissions of a project as a precondition to obtaining planning approval for that project. In fact, there is little regulatory oversight for Scope 3 emissions whatsoever. Many companies do not record and report Scope 3 emissions as they are not required to under the

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