POSTSCRIPT 2003
TO THE GOVERNMENT RESPONSE TO THE PRODUCTIVITY COMMISSION INQUIRY INTO THE IMPLEMENTATION OF ECOLOGICALLY SUSTAINABLE DEVELOPMENT 
BY COMMONWEALTH DEPARTMENTS AND AGENCIES

1.	Introduction

A whole of Commonwealth Government Response to the 1999 Inquiry by the Productivity Commission into Implementation of ESD by Commonwealth Agencies was agreed in August 2001.

Most of the agreed actions in the Response remain current and represent on-going commitments.  This postscript provides updates only in relation to significant developments that have taken place since 2001 in the context of the proposed activities.

The postscript updates three areas of the Government Response to the Productivity Commission Report:
1.	Mechanisms to progress ESD implementation;
2.	Additional mechanisms introduced by the Government to progress ESD; and
3.	Performance Management, Information and Monitoring

The section on “Mechanisms to progress ESD implementation” relates to recommendations 6.1 and 9.1 of the Productivity Commission Report.

The section on “Additional mechanisms introduced by the Government to progress ESD” relates to relevant activities that were identified as being undertaken by the Commonwealth that do not refer directly to any specific recommendation by the Productivity Commission.  These are:
•	ESD support activities;
•	Annual ESD and environment performance reviews by agencies; and 
•	the National Headline Sustainability Indicators.

The section on “Performance Management, Information and Monitoring” relates to recommendation 7.3 of the Productivity Commission Report.

2. 	Mechanisms to progress ESD implementation (as per Productivity Commission Recommendations)

2.1	Productivity Commission Recommendation 6.1

“Guidelines of existing policy development and evaluation mechanisms (such as regulation impact statement guidelines and environmental impact assessment guidelines) should include specific reference to assessing the likely social, economic and environmental costs and benefits of proposals, in both the short and long term.”

2001 Government Response to Recommendation 6.1

The Government Response supports the recommendation to include the assessment of ESD impacts in Regulation Impact Statements (RISs) and commits the Government to amending 'A Guide to Regulation'.

Action since 2001

The Office of Regulation Review has implemented the Government's decision by including the assessment of ESD impacts in the adequacy criteria for RISs.  In addition, the Government will amend 'A Guide to Regulation' to reflect this and other best practice standards. 

2.2	Productivity Commission Recommendation 9.1

“The Prime Minister’s Science, Engineering and Innovation Council (PMSEIC) has recently demonstrated leadership in such areas as dry land salinity and greenhouse science.  PMSEIC could consider further emphasis of the ESD dimensions of issues before Council.  For example, PMSEIC could:
•	Provide advice on strategic matters relating to long term sustainable development;
•	Facilitate interaction between leading experts and relevant ministers on ESD issues; and
•	Report (on a triennial basis) on matters relating to further implementation of ESD with a longer term strategic focus.”

Government Response to Recommendation 9.1

The Response supports the recommendation regarding the role of PMSEIC in facilitating implementation of ESD, noting that:
•	PMSEIC would continue to provide advice on strategic matters relating to long term sustainable development;
•	PMSEIC would continue to facilitate interaction between leading experts and relevant ministers on ESD issues; and
•	the Government would request PMSEIC to give further emphasis to ESD as suggested  by the Productivity Commission.

Action since 2001

Since 2001 PMSEIC has given further emphasis to ESD and has considered the issue through independent working group investigations on the following:
•	Australian Industry's Sustainable Competitiveness;
•	Sustainable Aquaculture;
•	Sustaining our Natural Systems and Biodiversity; and 
•	Beyond Kyoto: Innovation and Adaptation 

3.	Additional mechanisms introduced by the Government to progress ESD

The Government Response also notes a number of additional mechanisms which build on the Inquiry’s recommendations.  These include:
1.	ESD support activities;
2.	annual ESD and environment performance reviews by agencies; and 
3.	the National Headline Sustainability Indicators.

3.1	ESD support activities

The ESD support activities identified included:
•	encouraging Commonwealth Departments and Agencies to join the Greenhouse Challenge;
•	encouraging Commonwealth Departments and Agencies to implement environmental management systems based on ISO 14001, or an equivalent standard, by December 2002 and encouraging Portfolios to accredit at least one of their larger sites to ISO 14001 or equivalent standard before December 2003;
•	establishing an ESD information and support service within Environment Australia for two years. 

3.1.1	Action since 2001 - Greenhouse Challenge and the Energy Efficiency in Commonwealth Operations Program

Commonwealth agencies responsible for 47% of the total reported Commonwealth energy use in 2001-02 are members of the Greenhouse Challenge. These include: the Department of Defence, which accounts for 45% of the Commonwealth's reported energy use, the Joint House Department, the Department of Industry, Tourism and Resources, and Environment Australia. Total coverage is expected to increase to 50% of Commonwealth energy use with the inclusion of several agencies that are close to signing agreements to become members of the Greenhouse Challenge.  

In addition to Greenhouse Challenge, the Commonwealth undertakes a number of other actions to improve its energy efficiency, as set out below. 

The Energy Efficiency in Commonwealth Operations Program, which has been in place since 1997, encourages energy efficiency and reduction of greenhouse gas emissions through a range of measures including energy efficiency targets for building operations, minimum standards for office equipment and appliances, encouragement to use renewable energy, and vehicle fleet performance against the new Green Vehicle guide. 

Since the introduction of this policy in 1997, reported annual Commonwealth energy use has reduced by 14.2% to 8,273,042 GJ and greenhouse gas emissions have decreased by 11.2% to 1.59 Mt CO2-e for the 2001/02 year.  

From 1997-98 to 2000-01, Commonwealth agencies have achieved total cumulative greenhouse gas emissions reductions of 181,900t CO2-e. The energy intensity for the Commonwealth’s office central services requirements reduced from 534 MJ/m2/y in 1997-98 to 482 MJ/m2/y in 2001-02, which is below the policy’s target of 500MJ/m2/y.  Greenhouse gas emissions from this category reduced by 39% to 95,443 t CO2-e over the same period.  The energy intensity of the Commonwealth’s office tenant light and power requirements decreased by 23% from 13,524 MJ/person/y in 1997/98 to 10,381 MJ/person/y in 2001/02 and is on track to meet the 10,000MJ/person/y target set in the policy.  
Commonwealth agency use of renewable energy has increased from a zero base in 1997-98 to just under 0.5% of the total energy consumption reported in 2001-02. Additional increases are expected in the coming year, largely as a result of the contract the AGO negotiated for 53 Commonwealth agencies in the ACT. This agreement includes a minimum amount of 5% and an average of 8% new green energy above that required by the renewable energy regulator. Other Commonwealth agencies outside the ACT are taking up this approach in negotiating new energy contracts.

3.1.2	Action since 2001 - Environmental Management Systems and environmental purchasing guidance

All Commonwealth departments of State and Parliamentary Departments have an EMS either in place or under development. Many other Commonwealth agencies have EMS initiatives underway.  Several agencies, such as Environment Australia and the Australian Antarctic Division have already achieved ISO14001 certification of their EMS.

Environment Australia has provided a Model EMS for agencies to use, conducts a regular EMS for Agencies Forum and produces an EMS for Agencies Newsletter.

Environment Australia, with the Department of Finance and Administration and the Australian Greenhouse Office, have developed voluntary tools for encouraging environmental purchasing by Commonwealth departments and agencies. After an extensive period of public consultation, a new Environmental Purchasing Guide and 15 product and service specific checklists are soon to be released.

3.1.3	Action since 2001 - ESD Support Service

From May 2001 to June 2003, Environment Australia provided an ESD information and support service to Commonwealth agencies.  The service has provided assistance to agencies with their mandatory annual ESD reporting under the Environment and Biodiversity Conservation Act 1999 (EPBC Act).  

Guidance material to assist other agencies with their reporting under Section 516A of the EPBC Act has been provided on the Internet at http://www.ea.gov.au/esd/national/epbc/index.html.  

This material comprises:
•	an introduction explaining the reporting requirement;
•	a set of relevant definitions and principles; 
•	a six step guide to preparing a Section 516A report; and 
•	a set of criteria to assist agencies in determining the ESD relevance of their activities.

This guidance material has been further enhanced, in line with the recommendations in the Australian National Audit Office report on ESD reporting tabled in Parliament on 7 May 2003.

3.2	Annual ESD and environment performance reviews by agencies

The Government Response refers to provisions under the EPBC Act that require all Commonwealth agencies to provide annual ESD and environmental performance reports as part of their annual reports.  It notes that the reporting is likely to affect over 170 Commonwealth Departments, Parliamentary Departments, Commonwealth authorities and companies, and other relevant Commonwealth agencies. 

Action since 2001

Commonwealth agencies have now been required to include a report on their environmental and ESD performance as part of their Annual Reports for two years.  The Australian National Audit Office (ANAO) has recently completed a review of the first two years of mandatory annual ESD and environmental reporting by Commonwealth agencies.  The ANAO’s Report can be found on the Internet at: http://www.anao.gov.au

It should be noted that, under the Parliamentary Service Act 1999, Parliamentary Departments are not  “Commonwealth agencies” and are therefore not required to produce a report under Section 516A of the EPBC Act.

3.3	National Headline Sustainability Indicators

The Response also notes the Headline Sustainability Indicators as an additional mechanism introduced by the Government to progress ESD.  It notes that the indicators were developed by the Commonwealth in consultation with the States, under the auspices of ANZECC.  

The Response notes that, over time, the indicator set will provide a broad overview of Australia’s progress towards sustainability. 

Action since 2001

A set of national headline sustainability indicators, reporting against the core objectives of the National Strategy for Ecologically Sustainable Development, was finalised in 2001 and a first report, providing a baseline for future reporting against the indicator set, was published in 2002.  

The report is available at: http://www.ea.gov.au/esd/national/indicators/index.html
 
4.	 Performance Management, Information and Monitoring 

4.1	Productivity Commission Recommendation 7.3

“In recognition of the importance of establishing a consistent data series on key environmental attributes, the Commonwealth Government should commit to producing a state of the environment report on a regular basis (for example, every five years).  Through the appropriate ministerial council – such as ANZECC – consideration should be given to involving the States and Territories in this activity drawing on the mechanisms in place requiring the production of state of the environment reports in some States and Territories.”

Government Response to Recommendation 7.3

The Response supports the recommendation that the Government produce a state of the environment report on a regular basis (eg every five years), noting that an initial State of the Environment Report was released in 1996 and that, under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), the Commonwealth must produce a State of the Environment Report every 5 years.  

Action since 2001

The first State of the Environment Report produced under the Environment Protection and Biodiversity Conservation Act 1999 was completed in 2001 and tabled in Parliament on 19 March 2002. 

The next SoE report is due to be completed by December 2006.