ARELJ Article- Managing water resources in times of fracking: Regulation and reform in Western Australia

Greenwashing is now a global issue

Businesses and governments are now realising that being green is no longer nice to have, it’s an integral part of operations. There are also benefits, perceived and real, to both consumers and business customers to being involved in programs that are environmentally friendly or have an ethical or sustainable edge. This has given rise to a new risk - ‘greenwashing’ - that governments around the world are now grappling with.

Greenwashing refers to misrepresenting a product, policy or purpose as environmental, ethical or sustainable. It applies not only to companies but also non-profits, investors or anyone seeking to represent themselves in that light.

ARELJ Article- Golden Pig: The continuing effects of Forrest on the Western Australian Mining Industry

Potential changes to Environmental, Social and Governance reporting

Environmental, Social and Governance (ESG) isn’t new to Australia, but it’s expected to become a more important aspect of business in the coming years. With shareholders and institutional investors paying close attention to business activities with an ESG lens we can expect more focus on this area. A recent example is the HESTA superannuation fund choosing to very publicly vote against the AGL demerger proposal on ESG grounds.

What to expect from the new Australian government?

In May, the Australian Labor Party (ALP) achieved a majority government while the Greens and independents hold the balance of power in the Senate. This signals a new era for Australia, with voters clearly putting climate change high on the agenda for the next three years.

ARELJ Recent Development- Transitioning Section 18 Aboriginal Heritage Act 1972 Consents Under the Aboriginal Cultural Heritage Act 2021 of Western Australia

Victorian and Western Australian State Budgets

In recent weeks we’ve seen both the Victorian and Western Australian Governments deliver budgets for their State. Both have included significant investments in the energy and resources sector. 

In Victoria, the budget has signalled the importance of the mineral industry to regional development. Victorian mines directly contribute $510 million into the state economy in 2020-21.

What the Federal budget and election mean for the sector

The Federal election has now been set for May 21st and follows the recent 2022/23 Federal Budget announcement and Opposition’s reply. 

The Liberal party’s budget positions the energy and resources sector for growth with $2.4 billion  allocated to the industry, energy and emissions reduction portfolio. 

The budget included an investment of $1.3 billion to maintain energy security and reduce the pressure on prices while encouraging emissions reduction.
 

The impact of Russia/Ukraine conflict on the sector

The impact of the Russia/Ukraine conflict on the sector

On February 24, Russia invaded Ukraine. Alongside the destruction and terror that’s been inflicted on the Ukrainian people, the conflict has also created great uncertainty in the global economy with flow on effects expected to be felt for years to come. Most western countries have imposed significant sanctions on trade with Russia, which includes a US ban on importing Russian oil. In addition, many Russian banks have been removed from the SWIFT global payment system which will impact the ability to make financial payments both within and out of Russia. This has a significant impact on the resources sector that is likely to continue in the short to medium term.

What to expect in 2022

Despite an unpredictable two years, the energy and resources sector has weathered tumultuous conditions and come through stronger. All signs indicate that 2022 and beyond will see strong growth in demand and exciting new developments.