Hazard reduction burns in a Victorian state forest will continue after the Federal Court ruled they were unlikely to impact local endangered possum populations.
Environmental group Save Our Strathbogie Forest was seeking an injunction against Victoria's Department of Energy, Environment and Climate Action for planned burns in the Strathbogie state forest, over risks to the southern greater glider.
In handing down his decision, Justice Christopher Horan said burns would generally result in low intensity fires with limited impacts on the canopy.
"I'm not satisfied that the four planned burns ... will have or are likely to have a significant impact on the southern greater glider population in the Strathbogie state forest or on the species as a whole," Justice Horan said.
The judge noted the collapse of hollow-bearing trees could kill or injure gliders sheltering inside, but said it was unlikely to be common or widespread.
"The evidence does not establish that this is likely to lead to any significant reduction in the abundance of gliders in the planned burn areas nor in the Strathbogie State Forest," he told the court.
Save Our Strathbogie Forest president Bertram Lobert said the group was dismayed by the decision.
"Despite all the scientific evidence that we presented in court about the impact of the planned burns on greater gliders and threatened species ... the Victorian government basically has a green light to proceed with a business as usual approach to planned burning," Mr Lobert told AAP.
"We're just waiting on advice from our legal team to see whether there are good grounds for appeal and if there are we will certainly be appealing."
In a further decision, the court found the state government required to obtain Commonwealth approval before taking action that could significantly impact endangered species.
"Up until now, the the Victorian government has said they are exempt from that," Mr Lobert said.
"From the reading in the court this morning, it would appear that is not the case."
Forestry Australia president Michelle Freeman backed the decision to allow the planned burns, and said the practice was essential to reduce bushfire risk.
"That being said, it is imperative that prescribed burning is planned and managed appropriately, informed by evidence, with other forest values and key habitats in mind," Dr Freeman said in a statement.
Justice Horan said the court was not required to consider the efficacy of planned burns or balancing environmental values against reducing bushfire risk.
