Decommissioning Security Framework for Renewable Energy Projects

The framework, developed in consultation with more than 20 Clean Energy Council member organisations, sets a national approach to decommissioning projects and financial security, providing communities, landholders and governments with certainty that, in the unlikely event that a project fails to meet its end-of-life obligations, landholders, regional communities and governments are protected. It proposes that: 

• financial security be ring-fenced via an approved instrument such as a bank guarantee, cash in escrow, surety bond or other vehicle 
• obligations and liabilities transfer with project ownership, maintaining continuity of responsibility throughout the asset’s life cycle.

The framework enhances existing development approval requirements and provides a clear approach to supporting communities through the nation’s energy transition, providing those protections while keeping projects viable and investment-friendly to keep powering homes, economies and jobs. 

We look forward to engaging with governments and communities on the framework as we work to advance a leading practice standard for decommissioning Australia’s future energy assets. Thanks to members and stakeholders who contributed to the development of the framework.