CANBERRA – Australia's Labor government is facing a legislative crisis as its signature environmental reform bill hangs in the balance, caught between opposition from the conservative Coalition and unmet demands from the Greens party. The political deadlock, which intensified on Monday, 24th November 2025 (EAT), underscores the profound challenges major economies face in enacting meaningful climate policy, a struggle with significant implications for global climate finance and environmental leadership.

The government's proposed overhaul of the Environment Protection and Biodiversity Conservation (EPBC) Act is facing a tense standoff in the final sitting week of parliament for the year. Environment Minister Murray Watt has insisted the reforms will pass this week, stating he is prepared to negotiate with either the Coalition or the Greens to secure the necessary votes in the Senate. However, both parties remain opposed to the bill in its current form, creating significant uncertainty.

Divisions and Demands

The government has attempted to win over the Greens by offering key concessions. One major offer involves rewriting a contentious “national interest” exemption to prevent it from being used to approve new coal and gas projects. Another concession would bring native forest logging under national environmental standards after a three-year transition period.

However, the Greens have deemed these offers insufficient. Greens Leader Larissa Waters stated on Monday that while the offers were “welcome,” the bill is “still not good enough to protect the planet.” The party argues the legislation continues to fast-track fossil fuel projects and fails to address the climate impacts of new developments. Greens environment spokesperson, Senator Sarah Hanson-Young, criticized the three-year timeframe for logging reforms as “far too long” and has insisted the party will not be rushed into a decision.

Simultaneously, the conservative Liberal-National Coalition is refusing to support the legislation without its own significant amendments. The Coalition is demanding changes to the powers of the proposed new Environmental Protection Agency (EPA), seeking to ensure the environment minister retains final authority over project assessments. They also want to redefine key terms like “unacceptable impact” and amend penalty provisions for environmental breaches. This political maneuvering occurs against a backdrop of deep internal fractures within the Coalition over climate policy, with the National party recently abandoning the net-zero-by-2050 target, a move that has increased pressure on the Liberal party to clarify its own stance.

Deputy Prime Minister Richard Marles highlighted these internal struggles on Monday, accusing the Coalition of being “deeply divided” and humorously referencing “Brutus one and Brutus two up there, knives sharpening.”

Global and Kenyan Context

While this political battle is domestic to Australia, its outcome has broader international significance. Australia is one of the world's largest exporters of coal and gas, and its climate policies are under intense global scrutiny. The failure to pass robust environmental laws that account for the climate impact of fossil fuels could undermine the country's international climate commitments, including its legally mandated target to reduce emissions by 43% from 2005 levels by 2030 and achieve net-zero by 2050.

For Kenya and the East Africa region, the political paralysis in a developed nation like Australia has indirect but important consequences. As a nation highly vulnerable to climate change, Kenya is a continental leader in advocating for stronger global climate action and increased climate finance from developed countries. The African Group of Negotiators on Climate Change consistently pushes for developed nations to meet their financial pledges to help developing countries adapt to climate impacts and transition to clean energy.

Australia has previously supported climate-related initiatives in East Africa, including the 'Regreening for the Future' project in Kenya, funded with an AUD $3.5 million investment to restore degraded land. The country has also supported systems for estimating land-based emissions in Kenya. However, political infighting that stalls ambitious climate action at home can affect the credibility and capacity of such developed nations to lead internationally and fulfill their financial commitments to the Global South. The struggle over the EPBC Act serves as a critical case study of how domestic political divisions in the Global North can create headwinds for the urgent climate adaptation and mitigation efforts required in the Global South.

As the Australian parliament heads into its final days for 2025, the fate of the environmental reforms remains uncertain. The government is caught between two opposing sides, with little room for a compromise that would satisfy all parties. The outcome will not only shape Australia's environmental future but will also send a signal about the global political will to confront the climate crisis.