Victoria's coal-fired power stations will not face new limits on how much greenhouse gas pollution they can emit, after the Supreme Court today rejected a challenge brought by an environmental group.
The plaintiff, Environment Victoria, argued the state's environmental regulator had failed to properly consider climate change law when reviewing the operating licences for the state's three coal-fired power stations.
Environment Victoria argued the Environment Protection Authority (EPA) had an obligation to impose limits on the amount of greenhouse gas pollution the plants could emit.
Victoria's Climate Change Act 2017 requires people making certain decisions to consider the effects of climate change.
But in his written decision, Justice James Gorton said he rejected Environment Victoria's argument that the EPA had failed to do so.
He found that the EPA had considered climate change when it decided not to set a target.
Community expectations 'shattered'
Environment Victoria policy and advocacy manager Bronya Lipsi said the decision showed the state's climate laws needed to be fixed.
"I think it sends a message that the Climate Change Act in Victoria is not living up to community expectations," Ms Lipski said.
"We have an expectation that our climate laws will mitigate climate change and reduce carbon pollution."
She said the decision "shattered" community expectations and Environment Victoria would consider the judgement before making a decision about whether to appeal.
In a statement, the EPA thanked the court for its decision and said it was also considering its next steps.
"We have already taken steps to strengthen our processes and ensure climate change is demonstrably considered in all our regulatory decisions," a spokesperson said.
"Scrutiny from organisations like Environment Victoria can only make us better."
Energy Australia, which owned the Yallourn power station, said it welcomed the decision.
AGL, which owns the Loy Yang A plant, and Alinta, owner of Loy Yang B, did not respond.
Plants headed for early closure
Grattan Institute energy program director Tony Wood said it would not have been possible to cheaply curb the station's greenhouse gas emissions if the court had ruled the other way.
He said Victoria's energy policy was already geared towards the early closure of the three coal-fired plants to address climate change.
"If you look at the Victorian government's most recent policy positions, before and after the most recent election, you will conclude that these power stations will all be shut down in about 10 years' time, maybe even earlier," Mr Wood said.
The three Latrobe Valley plants were built between the 1970s and the 1990s.
Last year, Energy Australia announced it was bringing forward the closure of Yallourn to 2028.
In September, AGL said it would close Loy Yang A 10 years earlier than expected, in 2035.
Review three years in the making
The EPA completed its review of the power station operating licences in March 2021 after three years.
It included the first restrictions on pollution from mercury and fine and coarse particulate matter that the plants were able to emit.
But environmental groups were disappointed it did not require the plants' operators to install fabric filters which would have limited pollution.
They were also disappointed by the failure to impose a limit on greenhouse gas emissions.
