ASFI has provided a submission to the Australian Government’s consultation on the proposed National Environmental Standard for Matters of National Environmental Significance, as part of the Stage 3 Environmental Protection Reforms.

The submission highlights the role of robust, transparent and efficient environmental regulation in safeguarding nature, supporting businesses and financial institutions to manage nature-related impacts, and providing greater certainty for capital allocation.

ASFI Recommendations

1. Provide clarity on the timing and development of the full suite of Standards
   ASFI recommends the Government provide a clear timeline for the full suite of proposed Standards, including those covering First Nations engagement, data and information, environmental offsets, community engagement, monitoring, compliance and related areas.
   
2. Amend Principle 4 to reference the corresponding Standards
   ASFI recommends Principle 4 be amended to reference the anticipated Standards and clarify how proponents should substantiate that actions are supported by evidence.
   
3. Adopt unqualified, binding language
   ASFI recommends replacing vague or discretionary wording, such as “have regard to”, “appropriately consider”, “should” and “to the extent possible”, with clearer and more binding language to support accountability and market certainty.
   
4. Adopt an integrated ecosystems approach with cumulative impact assessments
   ASFI recommends the Standard require cumulative impact assessments, supported by a defined methodology, national datasets and spatial tools, and applied consistently across jurisdictions.
   
5. Clearly define measurable outcomes for each MNES
   ASFI supports the development of clear, measurable outcomes for each Matter of National Environmental Significance, so the objectives of the Standard can be monitored and achieved.
   
6. Include monitoring and evaluation requirements to support improved transparency
   ASFI recommends the Standard include monitoring and evaluation requirements to assess whether intended environmental outcomes are being achieved, rather than only whether processes have been followed.
   
7. Embed transparency provisions in regulation for accreditation arrangements and ongoing compliance with the Standards
   ASFI recommends transparency provisions for bilateral accreditation and compliance be embedded in regulation, supported by a publicly accessible register showing which states and territories operate under Commonwealth accreditation and evidence of ongoing compliance.

Australia’s ambitions to become a net zero and nature positive economy require strong baseline environmental protections, clear regulatory settings and active participation from the finance sector. A robust environmental protection regime is a key foundation for enabling finance sector participation in the transition to nature positive.