Publication
Making sense of industrial chemical regulation
Legislation was recently made in New South Wales that has fundamentally changed the way in which chemicals are managed in the State.
Australia | Publication | October 2024
This article was co-authored by Jay Gillieatt
The Industrial Chemicals Environmental Management Standard (IChEMS) is a national framework developed by the Commonwealth government, in co-operation with the States and Territories, to manage and address risks posed by industrial chemicals across Australia. It does this by listing industrial chemicals on a publicly available register, the IChEMS Register, which sets out relevant controls for each listed chemical. The States and Territories have agreed to implement the requirements of the IChEMS register into their respective laws.
For a recap on IChEMS, our May 2024 client update provides an overview.
The first iteration of the IChEMS Register was made by the Minister for the Environment (Minister) in 2022, starting with listing 8 industrial chemicals. Further chemicals were listed by the Minister in 2023 and 2024, bringing the total number of listed chemicals to 22.
The progressive addition of chemicals is performed according to the 2024-27 Scheduling Strategy and work plan,1 which sets the priority for scheduling decisions as follows:
Before making, amending, or revoking listings on the IChEMS Register, known as a ‘scheduling decision’, the Minister is required to place the proposed scheduling decision on public exhibition.2 The Minister has recently proposed scheduling decisions to add five new chemicals contemplated by the 2023-2025 workplan and to vary four existing listings.
Proposed scheduling decisions
The proposed scheduling decisions propose to list the following industrial chemicals on the IChEMS Register:
Industrial Chemical |
Proposed Schedule |
Relevant treaty implementation |
Schedule 7 |
Stockholm Convention on Persistent Organic Pollutants |
|
Schedule 7 |
Stockholm Convention on Persistent Organic Pollutants |
|
Schedule 7 |
N/A |
|
Schedule 3 |
N/A |
|
Schedule 3 |
N/A |
The effect of listing a chemical on Schedule 3 or 7 (as proposed) is set out below.
Schedule 3 chemicals will be subject to the general set of minimum standards for environmental management (MES) prescribed by DCCEEW and potentially to other risk management measures that are appropriate to the risk posed by those chemicals. However, these risk management measures will not include prohibitions or restrictions on use, manufacture, import, and export.
Schedule 7 chemicals are also subject to the MES and appropriate risk management measures, including general prohibitions on the import, export, manufacture, and use of the chemical.
Proposed variations
Amendments are also proposed to Schedule 7 Industrial Chemicals PFOS, PFOA, Pentachlorobenzene (PeCB) and short chain chlorinated paraffins. Aside from minor corrections, the changes proposed are:
The proposed scheduling decisions and variations are open for public comment until 25 October 2024.
Further scheduling decisions will progressively be added over the coming years. The workplan for 2024-2025 states that industrial chemicals listed under the Minamata Convention on Mercury, being mercury and mercury compounds, and certain industrial chemicals listed under the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade are next in line for consideration.
The States and Territories are responsible for passing laws to enforce the requirements of the IChEMS Register. Queensland and NSW were the first to do so in March 2024. In these states, the risk management measures, prohibitions and restrictions are now enforceable.
Western Australia has produced a consultation draft for the Environmental Protection (Industrial Chemicals) Regulations 2023. This closed for consultation on 5 February 2024, but has not yet been introduced into law.
Victoria is currently considering its approach to implementing IChEMS. Victoria has indicated that it will be reviewing its existing laws to determine whether any changes are needed to make them consistent with IChEMS.
Tasmania is currently drafting legislation to incorporate IChEMS into the state regulatory framework.
In South Australia, the EPA intends to prepare a draft industrial chemicals environment protection policy to implement IChEMS. This paper has not yet been released and no amendments have been made to the legislative scheme at this time.
The Northern Territory and the Australian Capital Territory have not yet indicated how they intend to implement IChEMS.
If you would like further information on the implications of IChEMS or the latest proposed scheduling decisions, please reach out to our Environment and Planning team.
Publication
While country risk cannot be avoided in cross-border transactions entirely, it can be effectively mitigated through careful transaction structuring and tailored contractual protections.
Publication
Miranda Cole, Julien Haverals and Emma Clarke of our Brussels/ London offices are the authors of a chapter on procedural issues in merger control that has been published in the third edition of the Global Competition Review’s The Guide to Life Sciences. This covers a number of significant procedural developments that have affected merger review of life sciences transactions.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023