The Climate Change Department is planning on looking into a potential conflict of interest within the government's lead agency on climate policy following concerns expressed by a think tank.
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The department and its statutory agency the Climate Change Authority have been grilled about Grant King's long-standing appointment as chair of the authority and other potential conflicts of interests in Senate estimates this week.
Last week, progressive think tank Australia Institute sent Climate Change Minister Chris Bowen a letter, urging him to review Mr King's appointment in regards to his commercial interests beyond his position at the board.
The think tank was concerned about a number of Mr King's other appointments, including chair of GreenCollar, the biggest carbon credits aggregator in the country and chair of HSBC Bank Australia, which participates in transactions involving the acquisition of carbon offsets.
The letter states the former Origin Energy chief executive is also chair at CWP Renewables, a company that develops, operates and owns renewable energy resources, and is principal of GK Advisory Pty Ltd, where gives advice to clients on the energy market, climate change and environmental issues.
Meanwhile, the authority advises the federal government on climate policy, including on the country's emission reduction targets.
Climate Change Department deputy secretary Jo Evans said there were some questions raised in the letter that go to "an interpretation of the act".
"We will get some advice on the accuracy of those views, and then take a decision about how to advise the minister," she said.
Asked if Mr King previously notified a conflict of interest with regard to his position as chair of GreenCollar, Ms Evans said although she hasn't "triple checked" the appointments listed in the letter, she believes they were aware of those at the time the previous government considered his appointment to the authority.
Department secretary David Fredericks also confirmed this was "fundamentally about the construction of the interpretation" of the authority's act and the department will "end up getting legal advice on that".
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When questioned by Greens Senator Larissa Waters on Tuesday about whether the Climate Change Authority has previously sought legal advice with regard to a conflict of interest for any of the current board members, its chief executive Brad Archer said he didn't think so.
But Mr Archer said they "have certainly consulted with the department in the form of seeking probity advice for how we manage conflicts of interest" for current board members.
Mr Archer said the authority maintained a register of interest updated by members at each authority meeting, which occur every six weeks.
"Where there is the possibility that there's a conflict of interest on a matter before the authority, members will determine whether they consider that to be the case and determine how that is to be managed," he said.
Mr Archer added the member with the potential conflict of interest is not involved in determining the approach.
Mr Archer stated there was also a document within the authority that describes "how the members go about conducting the business of the authority and authority meetings" which will be soon published on their website.
When asked why the document was only about to be published now, Mr Archer said "with what might be characterised as sort of the restoration of the authority and its role in advising government on climate change targets ... we are mindful of an increased level of interest in the activity of the authority and interested in continuous improvement in how we go about doing things".