Australian federal government’s ARENA plan open to serious legal challenge, says expert

Facebook
Twitter
LinkedIn
Reddit
Email
ARENA was designed as Australia’s renewable energy funder but critics say the new regulations are pushing it to invest in polluting technologies. Image: ARENA

A leading Australian barrister and former head of the Law Council of Australia has said the federal government’s plans to invest public money into fossil fuel production could be illegal, is open to serious legal challenge and is “at odds” with the purpose of the Australian Renewable Energy Agency (ARENA).

Climate advocates and lawyers have criticised the conservative government’s attempts to restructure Australia’s renewable energy funder, ARENA, by directing it to fund carbon capture, fossil fuel hydrogen and ‘low emission’ technologies.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

On top of that, a Liberal Party-led Senate Committee delivered a firm rejection of the new regulations for a third time on Wednesday (29 September), labelling them inappropriate and unlawful.

“Second Regulations bear many similar, and some identical, features to the Australian Renewable Energy Agency Amendment Regulations 2021 […] which were disallowed by the Senate on 22 June 2021,” said the advice published 30 September.

And now two prominent legal counsels have advised that the regulations are open to legal challenge on multiple fronts. 

Legal advice from Senior Counsel Fiona McLeod and Julian Murphy, sought by climate action group Environmental Justice Australia, found the move was “at odds” with the purpose for which ARENA was established and “thus potentially beyond regulation-making power”. 

“The legal risks of this latest attempt to recast ARENA to fund fossil fuel technologies are now abundantly clear. For ARENA, there may well be questions about the certainty of any actions it has taken or will take based on the government’s new regulation,” said Environmental Justice Australia’s senior climate specialist lawyer, Hollie Kerwin.

“Diverting ARENA makes no sense, and it’s likely illegal. ARENA was set up to focus on renewable energy and its success has been a big factor in Australia’s enormous renewable energy gains,” said Australian Conservation Foundation climate change and clean energy programme manager, Gavan McFadzean.  

“ARENA needs to remain Australia’s renewable energy agency, not a diluted agency expected to be the funding vehicle for all the energy minister’s pet programmes.”

Read Next

October 7, 2025
Rystad Energy has said that Queensland’s utility-solar assets were the best-performing solar PV power plants in September 2025.
October 7, 2025
The government of Victoria, Australia, has launched the an incentive scheme to encourage businesses to install rooftop solar installations.
Premium
October 2, 2025
Australia's solar sector delivered a strong September performance in the National Electricity Market (NEM) as the country entered spring, with combined solar PV generation reaching 3,933GWh - a 17.83% increase from August's 3,338GWh.
October 2, 2025
FRV Australia has announced the completion of its largest solar project to date, the 300MW Walla Walla Solar Farm in New South Wales.
October 1, 2025
Engie Australia's 250MW Goorambat East Solar Farm has registered with AEMO, marking the project’s readiness for the commissioning phase.
September 30, 2025
SynergyRED, a wholly owned subsidiary of Synergy, has submitted a development application for a 2GW hybrid renewable energy project in Western Australia's Mid-West Region.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK