A Volatile Climate

A volatile climate

Discussion about drought and water is carrying significantly greater punch this summer. Ignoring the climate change debate is like failing to acknowledge an elephant in the room, or icebergs floating alongside the coast of New Zealand. In an interview with the ABC’s Four Corners, Prime Minister Howard described climate control as a question of balance: “A country like Australia has got to balance a concern for greenhouse gas emissions with a concern for the enormous burden to be carried by consumers through much higher electricity prices, higher petrol prices, falls in GDP of too dramatic an imposition of what you might call an anti-greenhouse policy.”

But after the Lowy Institute polled public concern for the environment ahead of terrorism, the government has been forced to reconsider the issue. Even more convincing was World Bank chief economist, Sir Nicholas Stern, who reported that global warming could result in the world’s worst recession since the Great Depression. It seems the debate is no longer a question of whether climate change exists but, rather, who is responsible.

A question of climate

The Climate Action Network Australia (CANA) has forewarned more than 140 Australian companies, including mining, petroleum, transport, manufacturing and financial organisations, of their potential legal liability for climate risks. With a landmark action filed recently in California against the country’s six biggest car manufacturers, litigation against Australian companies whose activities contribute to climate change is becoming more conceivable.

But before public nuisance actions emerge, the regulation of greenhouse gas emissions is the main priority.

It appears that South Australia is leading the way, with the state government’s release of a draft bill to reduce local greenhouse gas emissions and increase the consumption of renewable energy to an ambitious 20% by 2014. It has also proposed new ‘feed-in’ legislation, rewarding those who can generate solar power to put back into the electricity grid.

Victoria looks to be following a similar suit, with the government’s Our Environment, Our Future – Sustainability Action Statement 2006. Its initiatives include drought assistance for farmers and communities affected by water shortages, a sustainable water strategy for the central region, and progressive water restrictions.

A question of water

Drought and bushfires have become very real environmental and economic concerns, more obviously felt going into summer. The lack of rain in rural areas has been particularly devastating for our farmers. Water has become a scarce resource, the management and cost of which have become serious issues for the government and the community. Increasing water prices and trading water between regions and states are just some of the propositions under consideration.

Amendments to the Water Act 1989 (Vic) in recent years have helped activate government initiatives towards defining legal entitlements to water, as well as its access and use by all Victorians. The broader view is to balance economic, environmental and social needs.

But the legal issues raised by the government’s control of water rights through this recent legislation are complex and currently being examined by the Law Institute of Victoria. One issue is that access to water is no longer considered part of the proprietary right enjoyed by those with an interest in land, namely owners and occupiers. A question yet to be resolved is whether the separation of water rights from the land could give rise to claims for compensation. The state of our environment is a growing and global cause of concern. The effects of recent legislative initiatives aimed at con serving and managing our water supply will be tested in the coming months. But responsibility begins in our own back yards.

More information

From the LIV Bookshop Energy Law and the Environment, by Lyster and Bradbrook, $120
Useful web links Visit Climate Action Network Australia (CANA) at www.cana.net.au

Disclaimer: The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from our office.



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