WA’s environment watchdog has bowed to intense public pressure and will withdraw controversial emissions curbs on major industrial projects.

Premier Mark McGowan revealed this afternoon the Environmental Protection Authority will rescind guidelines that required projects producing more than 100,000 tonnes a year of carbon to fully offset their emissions.

The retreat comes after a furious reaction from mining and resources businesses that the policy would put at risk thousands of jobs and tens of billions of dollars in investment.

It also follows a crisis meeting between the Premier and executives from oil and gas majors including home-grown giant Woodside at Parliament this morning.

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“After the meeting I was in contact with (EPA chairman) Dr Tom Hatton and I explained the concerns that industry had expressed and he and I agreed something needed to be done,” Mr McGowan said.

“They (industry) indicated they thought the consultation in relation to the guidance was not sufficient and they were not given sufficient opportunity to provide their views on the policy that was ultimately released.

“The EPA have contacted me in the last half hour or so and have advised me they are going to withdraw and consult the rules that they issued last week.

“I think that’s a good outcome for the state and I think it will allow for more certainty and allow us to be part of a bigger national solution on this issue.”

Mr McGowan denied rolling over for big business on the issue and said their view was aligned with his in wanting to have a national approach to emission policy.

He said the EPA would instead go out for a period of consultation with industry on how to deal with emissions from WA projects.

He said the consultation would take some months.

“It means people are going to be listened to and take into account all of the issues, certainly if there is a change in federal policy in the next couple of months that will be a very relevant consideration,” Mr McGowan said.

A statement from the EPA said its consultation with industry over the past week had clearly shown “some uncertainty” on the “technical aspects and practical implementation” of the guidelines.

“The EPA does not resile from the need to reduce Western Australia’s greenhouse gas emissions. Nor do we resile from our absolute right and obligation to provide advice to the Government on these matters,” it said.

“However, it is important that the detail of such advice is more fully developed and the practical applications are well understood.”

The EPA statement said the authority looked forward to further consultation with stakeholders, “including the many groups that have voiced their support for the intent of the EPA’s guidance.”