Federal Labor should make the case for a new carbon tax, former Treasury secretary Ken Henry says, describing the measure as “the world’s best carbon policy”. The government has recommitted to establishing a federal environmental protection agency but Watt has yet decide the scope of its powers. These include specific changes to preserve matters of national environmental significance, a suite of national standards, an independent EPA and “genuine cooperation” between the commonwealth, state and territories. Henry also called for a rethink of how the principle of ecologically sustainable development (ESD) is applied under federal nature laws. “It is time we stopped pretending we have the cognitive discipline to choose a sustainable balance among economic, social and environmental goals, project by project.”