As everyone awaits the government's delayed emissions trading policy to be passed into legislation, environment lawyers are preparing themselves for a surge in work across a variety of areas. Ralph Grayden reports
This was supposed to be a big year for Australia's environmental law practices: the Federal Government was to introduce emissions trading legislation; firms were poaching environmental lawyers to keep pace with the expected surge in compliance work; and a climate change practice was the latest "must have" for any self-respecting modern law firm. Then the economic downturn struck and the start date for the proposed trading scheme was pushed back a year.
Despite this, many areas of environmental work and many practices are booming, keeping lawyers as busy (or even busier) than they were before the acronym GFC (global financial crisis) became part of our vocabulary. So, which areas are flourishing, which have fallen away, and which are chugging along as though nothing has happened?
Halts, delays and changes to emissions trading schemes
Before elected, the Rudd Government promised it would introduce its Carbon Pollution Reduction Scheme (CPRS) on 1 July 2010. However, just before it was set to table the legislation in parliament last month the proposed commencement date was pushed back to 1 July 2011. At the time of writing, the legislation was before the Senate and both the Liberal opposition, and the Greens said they were not convinced by the Bill in its current form.
Mallesons partner Louis Chiam says he thinks the legislation will still be passed in some form, because both major parties have voiced their support for the legislation in principle. "The current debate is about key features and a lot of clients are waiting to see what the legislation will say when it's passed," he says.
Chiam believes the delay does not necessarily mean that CPRS-related work has dried up altogether and sees work in the area lifting soon. "We are focusing on explaining the long-term effects for clients and don't think the delay will change the practical implications for clients. If it isn't passed then there will be other regulatory arrangements to deal with," he says.
DLA Phillips Fox partner Charmian Barton agrees. "The pushing back of the carbon pollution reduction scheme by another year, to 2011, means that potentially for us there will be less immediate work, particularly if it is not passed by parliament. But if it is, people will seek more guidance before it commences," she says. Barton also reports that she is advising other areas of the firm on CPRS-related issues, including liaising with the property group about the need for change of law and pass-through cost clauses in their lease documentation in the event of the CPRS Scheme being passed.
Meanwhile, Baker & McKenzie's Andrew Beatty says that while some work is already flowing from the CPRS, more will follow. "The introduction of the CPRS will impose not only a compliance regime on many businesses, but will also drive changes in contracting approaches, procurement, risk management, corporate social responsibility and lending," he says. "The proposed CPRS and the increased renewable energy target will also drive significant investment in new technologies, including carbon capture and storage, and clean and renewable energy. As a result, there will be increasing work around the regulatory, planning and licensing aspects of those types of projects."
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