Labor and Greens edge closer to shock deal on Federal Environment Protection Agency

Labor and the Greens are edging toward a shock deal to create a new Environment Protection Agency as they look to pass the bill in Federal Parliament’s frantic final sitting week of the year.

Environment Minister Tanya Plibersek and Greens environment spokeswoman Sarah Hanson-Young are in talks on laws to create a Federal EPA, with optimism a deal to pass the long-stalled bill could be reached before Parliament rises for the year on Thursday.

After capitulating on their demands on Labor’s housing bills, speculation is rife the Greens could do so again on Nature Positive, handing the Government a second major win in what could be the final sitting week before next year’s Federal election.

No deal had been reached as of 9.30am on Tuesday (AWST).

The federal EPA – which Labor promised at the 2022 election – is the second stage of Ms Plibersek’s hugely controversial Nature Positive plan.

The third and final tranche, which will include a suite of national environmental standards, was put on the backburner months ago and almost certainly won’t be revisited until after the next year’s election.

The Greens already walked back their key demand for a climate trigger and offered to pass the EPA Bill unless the Government agreed to capture native forest logging under federal environment law.

Labor is understood to be reluctant to commit to a logging crackdown because of the risk of political blowback in Tasmania, meaning a deal with the Greens appears only likely if that demand was either dropped or watered down.

There is speculation Ms Plibersek might fast-track a national standard for forestry under a deal with the Greens.

Labor is also in active negotiations with independents David Pocock and Lidia Thorpe as it chases the final Senate votes it would need if it gets the Greens across the line.

A spokeswoman for Senator Pocock confirmed talks were ongoing and he wanted the Bill passed this week if possible.

Any Labor-Greens deal on Nature Positive will trigger a major backlash from WA miners and business groups even if it doesn’t include their most feared element — a climate trigger.

The EPA Bill as drafted would create a new federal agency with powers to make decisions on project approvals and police nature laws.

The Chamber of Commerce and Industry WA last week warned a Labor-Greens deal would cause “great damage” to the State, putting a drag on not just mining projects but housing and infrastructure as well.

“It must not pass — full stop,” CCIWA chief economist Aaron Morey said.

“If the Bill proceeds it will mean delays and cost blow-outs for every major project in Australia, and WA has the most to lose.”