The state government last month announced a decision to lift the existing ban on onshore gas mining to allow 'conventional' onshore gas.

The decision was based off findings from the Victorian Gas Program, which focused on gas mining around the Otway Basin and claimed emissions from onshore gas were low and did not threaten the state's climate targets.

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But a new briefing paper from policy think tank the Australia Institute claimed the climate impact of new onshore gas exploration and extraction had been underestimated by as much as seven times because the Victorian government excluded emissions produced when the gas was burnt.

Researchers found the VGP did not count emissions produced when the gas was burnt for heating, cooking and other end uses.

The government report said greenhouse gas emissions would be between 122,000 to 329,000 tonnes of carbon dioxide annually - a total of 6.4 million tonnes of carbon dioxide equivalent.

But if the emissions from burning this gas are also included this figure soars to more than 46 million tonnes of carbon dioxide equivalent, the Institute found, seven times higher than government estimates.

In a statement to The Standard, the state government admitted the emissions calculated - 0.1 to 0.3 per cent of Victoria's net 2017 greenhouse gas emissions - was only based on exploration and extraction of gas, not the actual burning of it.

"Our approach has been carefully advised and scrutinised by the lead scientist and an independent panel, made up of farmers, industry, local government and the community. It's only now, with the scientific studies in our hands that we've made these important decisions about the future," Resources Minister Jaclyn Symes said.

"Securing local gas supply for Victorians will not come at the cost of the state's environment, its groundwater supplies, agricultural industries or our farming's clean and green reputation."

Warrnambool resident and Protect the West member Patricia Nesbit criticised the state government's decision to lift the ban on conventional gas drilling, particularly in the midst of the coronavirus pandemic.

"Our leaders of today can no longer ignore the disastrous implications of a fossil fuel-led economy. They need to think sustainably and make our air, food and water security a priority," she said.

"The use of fossil fuels detracts from the pivotal strengths of clean air, food and water security to Victoria.

"Petroleum mining, in any environment is very risky, and accidents are prevalent even with monitoring processes in place. Mining and use of all fossil fuels have the capacity to destroy our clean, green food and fibre production for generations to come."

She said the figures from the Australian Institute report showed that the risks and impacts of new gas in Victoria were too high to be justifiable.

"New gas jeopardises the environment, livelihoods, and health of Victorian communities, who would pay the price whilst gas companies reap in profits," she said.

"Survival is dependent upon sustainable advancements and the use of gas is very damaging."

Dr Amanda Caples, who led the VGP, said in a statement they found a high likelihood of conventional gas onshore in south-west Victoria and to a lesser extent in Gippsland.

"The science told us that a responsible and well-regulated onshore conventional gas industry would not risk Victoria's groundwater supplies or agricultural production. It could create a boost to regional jobs, economies and communities," she said.

"Panel members did not always agree with each other or arrive at a consensus. But they agreed with the science and the integrity of the processes followed.

"The panel provided its advice to the Minister for Resources in early 2020. The Victorian Government announced on 17 March 2020 its intention for an orderly restart of the onshore conventional gas industry in Victoria.

"Overseeing the science while continuously engaging with the community has been an important feature of our work."

Corangamite Shire Council mayor Neil Trotter, a long-time supporter of gas exploration in the Otway Basin, said he was concerned with the new findings but the emissions didn't outweigh the need for more gas.

"Up until now we've relied on coal and gas and petroleum, our reliance is decreasing but at the moment we still need to have power ready at demand," he said.

"Whether we like it or not coal or gas fired power plants are what we rely on to deliver that power.

"(These figures) concern everyone but we are still reliant on fossil fuels."

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