The Economic Perspective 18 July 2025

The Latest Trending Economic News Curated for You by Balmoral Group Australia

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Good morning dear readers,

In this edition, we highlight policy and regulatory news concerning environment, energy, and infrastructure. First, water-use constraints may hamper the government’s plans for a green hydrogen export industry, and the Australian Competition & Consumer Commission (ACCC) has approved new collaborative investment initiatives using natural capital metrics.

A pause in Europe’s sustainability reporting requirements relaxes business burdens and makes room for reforms, while ‘cost shifting’ is affecting NSW councils more than ever. We’re excited to share these articles, given Balmoral Group Australia’s experience in natural capital valuation and infrastructure charging analysis. Don't forget to check out the map of the week, the soil moisture trends over the past 25 years.  

Hope you enjoy the articles and have a great weekend!

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Thirsty future: Australia’s green hydrogen targets could require vastly more water than the government hopes 

Replacing fossil fuels with “green Hydrogen” exports is a priority for the Government, but underestimating the water-usage required may dampen efforts. To reach their target of 15 million tonnes annually would require 740 billion litres of water, 30 litres per kilogram of H, but estimates range from 66 to 90 to even 300 litres per kilogram. However, sourcing from desalinated seawater and improved electrolyser tech may offer solutions. Read more here.

Australian Regulator Grants Green Light for Sustainable Finance Collaboration 

The ACCC has allowed the Australian Sustainable Finance Institute (ASFI) and industry partners to collaborate on sustainable finance projects for the next five years. The approval integrates natural capital and co-design, aiming to channel investments toward positive environmental outcomes in areas such as farming, exports, and emissions targets. Read more here.

EU Postpones Key Sustainability Reporting Requirements for Large Companies Until 2027 

A recent regulatory reset for Europe’s CSRD sustainability reporting aims to reduce short-term pressure on businesses by delaying the addition of new disclosure requirements. This delay gives businesses time to breathe and adapt, accompanied by scope changes that clarify and standardise. Read more here.

NSW ratepayers slugged $500 each in ‘cost shifting’ 

A 2025 report from Local Government NSW (LGNSW) highlights the increased burden on councils from “cost-shifting”, where the responsibility for services, infrastructure and regulatory functions are shunted toward local government by state and federal government without adequate funding, costing councils an estimated $1.5 billion per year. A key example is forced rate exemptions – some organisations are exempt from paying rates despite benefiting from local government services and infrastructure. Read more here.

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Soil Moisture Trends  

The following map from TERN’s Decadal Report 2025 on the Australian environment shows estimates of soil moisture over the past 25 years. Trends are shown in per cent per year, with blue representing increasing moisture and red showing drying. Only significant trends (p<0.05) are shown. See the full report here.

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