Coal Update

Nannas, Rising Tide and other Sydney folk joined a rally by Hunter Renewal outside NSW parliament on 17 March. Two government announcements on coal mining in NSW had us reaching for our de-stress knitting.

Hunter Renewal (previously Hunter Jobs Alliance) called on the government to allocate fair funding to coal communities as they transition from coal mining. The government has established the Future Jobs and Investment Fund but the funding allocated so far is nowhere near the $150 million per year that’s needed, which is about five per cent of coal royalties.

Nannas were impressed by the detailed plans Hunter Renewal has for a transition that would be fair for coal workers and communities. A just transition must also include environmental protection and participation by local communities in decision making.

Justin Page co-ordinator of the Hunter Jobs Alliance.

The NSW Government released its policy NSW Coal Industry 2026-50 on 19 March. While the differences between the new policy and the old one are still being unpacked it’s clear they will do very little to disrupt business as usual for the industry.

The media bought into the hype about the government banning “greenfields” coal projects (projects on new sites), but it’s just a distraction. The policy continues the practice of designating new projects in the planning system as “extensions”, providing they are proposed in designated areas next to existing mines. This includes Moolarben, near Mudgee, and Hunter Valley Operations (HVO) near Singleton. HVO isn’t a “greenfield” project but if approved it would generate 1.2 billion tonnes of lifecycle emissions over the next 24 years, with continuing impacts on Hunter water resources.  

Hunter Valley Operations

The policy ignores the advice of the Net Zero Commission, which it set up to provide independent advice on meeting its commitments in the Climate Change Act. In its recent Spotlight on Coal report, the Commission advised the government that continued extensions or expansions of existing coal mines are not consistent with the Act, nor with the Paris Agreement.

It also means that there will be more pressure on other industries to reduce climate pollution to meet the legal requirements of the Climate Change Act.  It will also lead to increases in the cost of damage from climate change, costs that must be met by the state, councils and communities.

This policy of continuing the expansion of coal mining is a missed opportunity for much needed change. It comes at a time when there are very significant falls projected for NSW coal exports, and a time when the need for a well-funded transition from coal has never been clearer.

On 3 March the UNSW Australian Human Rights Institute released a report on the legal obligations for environmental impact assessment in coal mining approvals in New South Wales. The report was commissioned by the Australian Climate Accountability Project and prepared by the Hon John Basten KC, Honorary Professor, UNSW Law & Justice, assisted by Gillian Moon, Senior Visiting Fellow, UNSW Law & Justice.

It’s not an easy read for non-lawyers but it should be widely read anyway. It reviews Australian and international law related to coal and climate change and uncovers serious issues with assessment processes in NSW. It affirms that the IPC is legally required to consider significant likely impacts of all climate emissions. It clarifies the authority of the Net Zero Commission, and reviews the Denman decision (Mt Pleasant).

On international law it asserts: “NSW, which provides (with Queensland) 99% of Australia’s export coal, cannot, in compliance with Australia’s international obligations, approve any new coal mines or extensions of existing mines.” (Page 41)

19 March 2026 – The NSW Environment Protection Authority (EPA) released its Greenhouse Gas Mitigation Guide for NSW Coal Mines policy. It includes some disappointing backdowns from the draft published last year, and represents another example of the Net Zero Commission’s advice on meeting the requirements of the Climate Change Act being ignored. 

The Lock the Gate Alliance summarises two major areas where the EPA has let the coal corporations off the hook in this final version of the guide as:

  • abandoning plans to require emissions from diesel use at coal mines to be reduced, leaving the largest open-cut coal mines in NSW effectively free to continue emitting without limit, and
  • they have allowed delays in the rollout of crucially important methane abatement measures at underground coal mines. 

For more on the guidelines see the Lock the Gate statement and the EPA Media release. Another missed opportunity for NSW to seriously regulate the reduction of climate pollution in NSW. 

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