On 19 August 2026, the Australian Government made the first four National Environmental Standards (Standards) under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). They carry practical implications for proponents across energy, resources, infrastructure and other sectors.
The Standards are:
- the National Environmental Standard (Matters of National Environmental Significance) 2026 (MNES Standard)[1].
- the National Environmental Standard (Environmental Offsets) 2026 (Offsets Standard)[2];
- the National Environmental Standard (Community Engagement) 2026 (Community Engagement Standard)[3]; and
- the National Environmental Standard (Data and Information) 2026 (Data and Information Standard)[4].
The Standards are now in force as legislative instruments. However, they will not apply to environmental assessments and approval decisions until the new approval tests commence, scheduled on or before 1 December 2026.[5]
For proponents, this creates a transition period. The Standards may not yet determine assessment or approval outcomes but they signal the environmental outcomes, information requirements and engagement processes that will underpin the Federal Government’s decision-making under the EPBC Act.
The broader reform context
The Standards sit within the Government’s broader reform of national environmental laws, following the Samuel Review of the EPBC Act.[6]
The reforms aim to establish clearer environmental outcomes, strengthen protections and improve the efficiency and consistency of Commonwealth decision-making. As Environment Minister Murray Watt stated: “The National Environmental Standards are about protecting our precious environment while powering productivity. It’s about turning around nature’s dire trajectory, while simplifying the process to approve the new homes, energy and minerals projects Australia needs.”[7]
Implementation is occurring progressively: Tranche 1 commenced on 20 February 2026, the National Environmental Protection Agency (National EPA) commenced on 1 July 2026, and the first four Standards were made on 19 August 2026. The remaining reforms are expected to commence on or before 1 December 2026.
The National EPA is Australia’s new independent environmental regulator. It handles compliance, enforcement, permitting and, under delegation from the Environment Minister, project assessments and approval conditions.
The Department of Climate Change, Energy, the Environment and Water states that the Standards set principles that must be met when projects are assessed under the EPBC Act.[8] Once the new approval tests commence, a project can only be approved if it is consistent with the Standards subject to statutory exceptions, including a national interest test.
What are National Environmental Standards?
The Standards are legislative instruments made under the reformed EPBC Act. They establish environmental outcomes and requirements across Commonwealth assessment and approval pathways, as well as strategic assessments, accreditation arrangements and bioregional plans.
This matters because environmental assessment often spans several years. Decisions made during project design, survey work, impact assessment, consultation and offset planning can have consequences much later in the approval process.
1. Matters of National Environmental Significance
The MNES Standard is likely the most relevant for proponents whose projects may impact protected matters under the EPBC Act.
It establishes outcomes and principles for the protection, management, restoration and recovery of protected matters, including:
- World Heritage properties;
- National Heritage places;
- Wetlands of international importance (Ramsar wetlands);
- Listed threatened species and ecological communities;
- Listed migratory species;
- Commonwealth marine areas;
- The Great Barrier Reef Marine Park; and
- Nuclear actions.
The Standard’s objective is to ensure that Australia’s protected matters are protected, conserved, restored and recovered.
The mitigation hierarchy
The MNES Standard is built around the mitigation hierarchy, requiring proponents to consider:
- avoidance of impacts;
- mitigation of impacts that cannot be avoided; and
- repair of impacts where appropriate,
before compensating for residual significant impacts.
Under the reformed framework, the availability of an offset cannot simply be relied upon at the end of the assessment process. The hierarchy places greater emphasis on decisions made before an impact occurs.
For proponents, this may mean greater scrutiny of project footprints, construction methods, timing, ecological buffers and other design choices.
The hierarchy requires environmental considerations to be embedded in project design from the outset. For example, where a proposed infrastructure project may affect threatened species habitat, proponents may need to demonstrate not only their offset strategy but also the steps taken to:
consider alternative locations;
- reduce the project’s footprint;
- avoid particularly sensitive habitat;
- avoid particularly sensitive habitat;
- modify construction methodologies;
- implement timing restrictions;
- establish appropriate buffers; and
- otherwise reduce the project’s environmental impact.
Maintaining a clear evidential record of alternatives considered during project development will be important. For major projects, that record can help demonstrate the mitigation hierarchy has been appropriately applied.
The MNES Standard also addresses residual significant impacts to protected matters.
Where significant impacts remain after avoidance, mitigation and repair, compensation may be required. This connects the MNES Standard with the Offsets Standard. Proponents will need to understand the interaction between the mitigation hierarchy (which determines whether an impact is residual), the MNES Standard (which sets the environmental outcomes) and the Offsets Standard (which sets the compensation principles).
Rather than treating offset assessment as a discrete end-of-process workstream, proponents should consider offset implications alongside project design and impact avoidance from the start.
2. Environmental Offsets Standard
The Offsets Standard establishes a framework for environmental offsets under the reformed EPBC Act, aiming to ensure offset measures deliver the required environmental outcomes, including a net gain for the relevant protected matter.
Offsetting does not replace avoidance and mitigation. It addresses residual impacts after the hierarchy has been applied.
The reforms also provide for alternative mechanisms, including restoration contributions and biodiversity certificates.
Offset strategy may therefore become a more prominent part of project feasibility and design, with implications for cost, land requirements, timing and viability.
3. Community Engagement Standard
The Community Engagement Standard establishes a framework for engagement with communities during environmental assessment.
The Standard requires early, open and honest communication and collaborative engagement.
This is particularly relevant for major renewable energy, resources and infrastructure projects, where community concerns can affect design, timing and approval risk.
Engagement should not be a discrete step after a project is substantially designed. Proponents should embed engagement alongside project development and environmental assessment.
This includes identifying affected communities early, providing accessible information, documenting feedback and demonstrating how it has been considered.
4. Data and Information Standard
The Data and Information Standard sets requirements for environmental information used in EPBC Act decision-making.
It requires that environmental decisions be supported by information that is representative, transparent, comparable, reusable and ethical.
This has practical implications for proponents and their environmental consultants.
Ecological surveys, mapping, species records, vegetation assessments and other technical data can determine the scope and outcome of an assessment. Proponents should ensure this information is robust, current and well documented, including that survey methodologies, assumptions and limitations are clearly recorded.
For projects with long development timeframes, strong data governance matters. Environmental information can become outdated or difficult to reproduce if surveys, datasets and methodologies are not properly maintained.
Do the Standards apply now?
Not yet. At least, not to environmental assessments and approval decisions.
The Standards are in force as legislative instruments but will not apply to assessments and approvals until the new approval tests commence on or before 1 December 2026.
Being “in force” does not mean every current assessment must be reassessed against the new Standards.
The position of an individual project will depend on factors including:
- when the project was referred;
- whether a controlled action decision has been made;
- the assessment pathway being used;
- whether an assessment has commenced;
- when the relevant approval decision is expected;
- whether transitional provisions apply; and
- the date on which the relevant elements of the reformed EPBC Act commence.
Proponents with projects currently in the Commonwealth assessment process should review the transitional arrangements on a project-by-project basis and:
- Review project design: consider whether the current footprint and design address the mitigation hierarchy, identifying reasonably practicable opportunities to avoid or reduce impacts before formal assessment.
- Review ecological investigations: ensure environmental information meets the Data and Information Standard.
- Consider offset strategy early: where significant residual impacts are anticipated, assess the Offsets Standard’s implications for feasibility, cost, land requirements and timing.
- Strengthen community engagement: engage early and document engagement systematically. For projects likely to attract substantial community interest, this should form part of project governance, not just an approval requirement.
- Understand timing: for projects already in the EPBC Act system, identify which regulatory framework will apply to the relevant assessment and approval decision.
The Standards will have the greatest practical effect on renewable energy, resources and infrastructure projects, i.e. those involving large footprints, threatened species, extensive environmental datasets and substantial community interest.
For these projects, the four Standards operate together. A renewable energy project, for example, may need to consider the MNES Standard for its footprint, the Data and Information Standard for its ecological investigations, the Community Engagement Standard for its consultation strategy, and the Offsets Standard for residual impacts. The Standards will therefore shape project development well before a final approval decision.
The National Environmental Standards mark a further milestone in the reform of Australia’s environmental laws.
Although they do not yet apply to assessments and approvals, they give proponents a clearer picture of the regulatory framework that will shortly underpin Commonwealth environmental decision-making.
The transition period is a window to identify and address environmental, technical, community and commercial risks before they become embedded in project design or the approval process.
Now is the time to assess whether current project design, environmental investigations, engagement strategy and offset approach align with the new framework.
For more information, please contact Amelia Prokuda.
[1] National Environmental Standard (Matters of National Environmental Significance) 2026 (Cth).
[2] National Environmental Standard (Environmental Offsets) 2026 (Cth).
[3] National Environmental Standard (Community Engagement) 2026 (Cth).
[4] National Environmental Standard (Data and Information) 2026 (Cth).
[5] Department of Climate Change, Energy, the Environment and Water, ‘Progress on implementation’ (Web Page, 2026) https://www.dcceew.gov.au/environment/epbc/epbc-act-reform/progress-on-implementation
[6] Professor Graeme Samuel AC, Independent Review of the EPBC Act – Final Report (Report, October 2020).
[7] Senator the Hon Murray Watt ‘First National Environmental Standards set amid ongoing EPBC reform’ (Media Release, 20 August 2026) https://minister.dcceew.gov.au/watt/media-releases/first-national-environmental-standards-set-amid-ongoing-epbc-reform
[8] Department of Climate Change, Energy, the Environment and Water, ‘National Environmental Standards’ (Web Page, 20 August 2026) https://www.dcceew.gov.au/environment/epbc/epbc-act-reform/standards.
