NSW Government Defies Climate Agency Over Coalmine Expansions
The New South Wales Labor government, led by Premier Chris Minns and Natural Resources Minister Courtney Houssos, has announced it will continue to greenlight expansions and time extensions at existing coalmines. This decision effectively rejects a warning from the state's own climate agency, the NSW Net Zero Commission, which stated that approving new developments would be inconsistent with NSW's legislated emissions targets.
Ban on New Greenfield Mines
In a statement on the coal industry's future, the government declared it will no longer consider proposals for 'standalone greenfield coalmines' on undeveloped sites. However, it emphasised that expansions at current mines would proceed, aiming to balance energy security, jobs, and regional development with the need to reduce emissions and meet net zero goals.
Courtney Houssos stated that this strategy ensures NSW remains a reliable coal supplier 'where market demand exists'. She highlighted coal's historical role in powering the state and its continued economic support for decades to come, providing confidence to workers and communities.
Climate Agency's Warning Ignored
In December, the NSW Net Zero Commission advised the government to consider climate impacts in coalmine planning decisions, including scope 3 emissions from exported coal. It concluded that new expansions were not aligned with NSW's commitments to cut emissions by 50% by 2030, 70% by 2035, and achieve net zero by 2050 compared to 2005 levels.
Georgina Woods of the Lock the Gate Alliance criticised the strategy, noting that all 18 coal projects in the planning pipeline are expansions or extensions, not greenfield mines. She argued these would generate hundreds of millions of tonnes of greenhouse gas pollution and accused the government of using semantics to mask continued approvals.
Industry and Environmental Reactions
The NSW Minerals Council welcomed the announcement as 'very positive', acknowledging no new greenfield mines have been proposed in years. Chief executive Stephen Galilee said support for extensions would benefit thousands of coalmining workers.
Conversely, environmental groups expressed concern. Freja Leonard from the Australian Conservation Foundation called for planning a phased coalmining phase-out and worker support, while welcoming the greenfield mine ban.
Methane Pollution Rules
Simultaneously, the NSW Environment Protection Authority released rules requiring major coalmines to reduce fossil methane pollution. High-emitting mines must capture, treat, or convert leaking methane to lessen environmental damage. EPA chief executive Tony Chappel described this as a fast way to limit climate impacts.
However, Lock the Gate claimed the rules were watered down from a draft version and breach duties to protect communities from climate change.
Since the 2023 election, the government has approved at least eight coal expansions, with nearly 90% of NSW coal being thermal coal used in power plants. The government acknowledged global coal demand is declining but stated coal will remain economically important as renewable energy expands.
