NSW NET Zero Commission Annual Report States More to do to meet 2030 - 2035 Targets
Thursday July 23, 2026
The independent Net Zero Commission’s Annual Report released today warns NSW is further away from meeting its legislated emissions reductions targets than it was last year as new coal extensions and data centres put net zero further out of reach.
The Net Zero Commission is calling for stronger planning controls to account for emissions reductions targets in assessment of developments, and has warned that any new coal expansions are incompatible with the state’s binding emissions reductions targets.
NSW making progress on emissions, with more to be done to meet its legislated 2030 and 2035 targets: The NSW Net Zero Commission
''NSW has made progress reducing greenhouse gas emissions and rolling out low-emission technologies, but current trends indicate that without stronger action the state is unlikely to meet its 2030 and 2035 legislated targets. To help reach these goals, the Net Zero Commission’s 2026 Annual Progress Report identifies practical opportunities to speed up emissions reductions and better prepare communities for escalating climate risks.
The report shows that the expansion of renewable electricity, household energy efficiency measures and cleaner transport are helping to reduce NSW emissions and lower energy costs. Recent initiatives such as the Home Energy Saver program, Consumer Energy Strategy and Climate Change Adaptation Action Plan provide a strong foundation for further action.
To get back on track, the Commission recommends that government decisions, including planning assessments, should be consistent with the legislated emissions reduction targets.
The report highlights that much of the technology and approaches needed are commercially available today. Speeding up the transition means scaling what already works in electricity, transport, industry and buildings. The government can also focus on reducing potent methane emissions across agriculture, waste and coal mining.
Crucially, the report notes that NSW must move from planning to delivery on adapting to a warmer, more variable and harsher climate. Preparing communities for more extreme weather will require coordinated action across government, along with sustained funding and strong local involvement.
Commission Chair Nick Rowley said: “NSW has made important progress, and there is a clear path to build on. Proven technologies and policies are already helping to reduce emissions and energy costs. Expanding these efforts in a consistent and practical way will put the state on track to meet its targets while supporting jobs and communities.”
“Planning assessments can have real impact with clear and predictable rules helping investment flow into projects that will support, rather than hinder, progress towards the state’s legislated targets. With the right policy settings, NSW can support a more productive economy and higher household incomes over the coming decades.”
Key recommendations for the NSW Government to achieve the legislated targets under the Climate Change (Net Zero Future) Act 2023 include:
- Make emissions targets part of every major decision: Ensure government decisions, especially planning decisions, take account of the legislated targets, support renewable energy and low‑emissions industry, and carefully assess the impacts of proposed coal mine extensions, expansions and new data centres.
- Speed up the deployment of renewable energy: Build renewable generation, storage and transmission more quickly to keep the power system secure and reliable as coal power stations close, while providing clear benefits and support for host communities.
- Back electrification: Support a faster rollout of EV charging networks, move to all-electric buildings over time, and update government schemes to make it easier for households and businesses to switch to more efficient and cheaper electric options.
- Cut methane pollution: Methane emissions are much more potent than carbon dioxide and make up around 30% of the state’s current total emissions. Using practical, available solutions across the livestock, waste and coal mining sectors can have material and timely emissions benefits.
- Deliver adaptation on the ground: Move from plans to action by putting in place long‑term funding for climate adaptation and resilience, guided by the knowledge and leadership of First Nations peoples, local communities and councils.
The report states:
NSW is cutting emissions but not fast enough to meet its legislated targets of a 50% reduction by 2030 or a 70% reduction by 2035. The NSW Government's 2025 emissions projections show that the gap to meeting the state's 2030 and 2035 emissions reduction targets has widened compared to the 2024 emissions projections.
The projected shortfall for 2030 is 10–20 MtCO2-e, while the projected 2035 shortfall is 21–24 MtCO2-e. To meet its 2030 target, NSW needs to reduce emissions 2.5 times faster than it has on average since 2005.
Annual emissions need to fall to 75.9 MtCO2-e by 2030 and 45.6 MtCO2-e by 2035 to meet NSW’s legislated targets.
8 recommendations
The report includes 8 recommendations to help achieve NSW's climate targets:
1. NSW Government decisions, particularly planning decisions, need to take the targets into account
Summary
This includes prioritising assessments for renewable energy and industrial decarbonisation projects. There must also be meaningful consideration of the legislated targets for all planning proposals, particularly for coal mines and data centres.
Recommendation 1A
Prioritising planning approval for projects that will contribute to meeting emissions reduction targets, in particular, renewable energy infrastructure and industrial decarbonisation projects.
Recommendation 1B
Ensuring meaningful consideration of NSW’s emissions reduction targets in all NSW Government decisions, particularly in planning assessments of coal mine extensions or expansions, and data centres.
Recommendation 1C
Improving the availability of verified emissions data to enable more accurate monitoring and reporting across supply chains and better inform government and private sector decision-making.
2. Accelerate the electricity sector transition
Summary
Fast track the build-out of renewable generation, storage, and transmission and close coal power stations as soon as possible.
Recommendation 2A
Reducing barriers to renewable generation, storage and transmission delivery throughout planning, financing and construction phases.
Recommendation 2B
Improving host communities’ support for new renewable energy and transmission infrastructure, including by requiring meaningful engagement and ensuring benefits to the regions.
Recommendation 2C
Improving energy efficiency of existing facilities and buildings, and accelerating uptake and orchestration of distributed energy resources to put downward pressure on energy bills and reduce the need for large-scale generation, storage and transmission.
Recommendation 2D
Ensuring new industrial loads, especially data centres, rely on additional renewable energy sources and support the timely closure of coal power stations.
3. Accelerate uptake of electric alternatives for transport, buildings and industry Summary
Drive fast, cost-effective emissions reductions through faster uptake of electric vehicles, phasing out gas in buildings, and helping businesses electrify low-to-medium temperature process heat.
Recommendation 3A
Enabling and incentivising faster uptake of passenger and light commercial electric vehicles in NSW, including by ensuring a rapid build out of the statewide charging network (public, residential and commercial), and expanding public transport, walking and cycling.
Recommendation 3B
Planning for and incentivising electrification of trucks and buses, including charging infrastructure along freight corridors.
Recommendation 3C
Phasing out gas use in existing buildings and requiring all-electric new buildings while considering vulnerable people and regulating refrigerants to reduce their climate impact and avoid long-lasting, toxic chemicals.
Recommendation 3D
Driving energy efficiency and improved thermal resilience through mandatory disclosure of performance for all new and existing homes at the point of sale or lease, and minimum standards that support health and thermal safety in a changing climate.
Recommendation 3E
Incentivising electrification of low-to-medium temperature process heat, including by helping businesses understand and adopt electric options and reforming existing schemes to reduce financial barriers.
4. Significantly reduce methane emissions
Summary
Deploy mature abatement options for landfills, upscale methane technology for livestock, and action the findings of the Coal Mining Emissions Spotlight Report. Methane is a strong greenhouse gas and avoiding its release will have an outsized impact on NSW’s emissions.
Recommendation 4A
Developing and delivering policies that implement the findings of the Commission’s Coal Mining Emissions Spotlight Report, in particular Finding 3.
Recommendation 4B
Scaling the low-cost abatement measures identified by the NSW Department of Primary Industries and Regional Development, including biochar, feed additives, manure management and herd management, alongside longer-term pathways for reducing livestock emissions.
Recommendation 4C
Reducing waste emissions by maximising landfill gas capture, reducing total waste generation, and diverting other methane-generating waste from landfills (beyond food and garden organics mandates).
5. Strengthen the policy environment for longer-term emissions reductions across sectors
Summary
Some sectors are less mature and need support to improve emissions data, innovate and build new infrastructure to decarbonise in the longer-term.
Recommendation 5A
Focusing policy on existing and new industries that will be competitive in a net zero future and communicating priorities clearly to attract private sector investment, including through supporting innovation, demonstration and scale-up.
Recommendation 5B
Establishing the platforms and new infrastructure for the decarbonisation of heavy freight, aviation and shipping, including options to scale alternative low carbon fuels for aviation and shipping, and shifting road freight to rail.
Recommendation 5C
Improving alignment across agriculture, land use and climate policy frameworks to reduce emissions, focusing on protecting native forests, limiting land clearing, and ensuring land managers can access incentives and financial mechanisms to deliver abatement, resilience and other co-benefits.
Recommendation 5C
Advocating for more transparent and accurate reporting on embodied emissions in the built environment sector, supported by robust carbon tracking and accounting at the product level throughout supply chains.
Recommendation 5D
Leading advocacy for Commonwealth policy changes that support and drive emissions reductions, such as fuel tax credit reform.
Recommendation 5E
Embedding circular economy principles in government policies and programs where they can deliver the greatest reductions in emissions and waste generation.
Recommendation 5F
Developing a credible residual emissions strategy that prioritises avoidance and reduction, establishes a clear role for carbon removals, and minimises the use of offsets by focusing on mechanisms to reduce direct emissions.
6. Improve governance of adaptation policy and action
Summary
Laying foundations is no longer enough. Timely adaptation action requires clear governance and coordinated policy.
Recommendation 6A
Introducing regulations to clarify roles and responsibilities for adaptation and specify timeframes for statewide climate risk assessments, adaptation action plans and adaptation monitoring and evaluation.
Recommendation 6B
Releasing the Climate Change Risk and Opportunity Assessment as soon as possible. Within 6 months of its release, the findings of an independent evaluation into its development should be published to inform the delivery of future assessments.
Recommendation 6C
Ensuring timely delivery of actions under the Climate Change Adaptation Strategy, State Disaster Mitigation Plan and Climate Change Adaptation Action Plan.
Recommendation 6D
Progressing adaptation activities beyond risk identification toward actions that directly increase resilience to climate risks.
Recommendation 6E
Considering action prioritisation, progress indicators and a greater focus on addressing vulnerability in disadvantaged groups and communities, including First Nations peoples, within its forthcoming review of the Climate Change Adaptation Action Plan.
Recommendation 6F
Implementing actions that address findings from the Commission’s Heat Stress Spotlight Report.
7. Increase overall investment in adaptation
Summary
The increase in the size and nature of climate risks means we need long-term investment in adaptation. Funding needs to consider the agencies and councils on the frontline of protecting communities from climate impacts.
Recommendation 7A
Developing a financing strategy to fund adaptation action which considers the economic benefits of proactive investment, the resourcing needs of agencies and local councils proportionate to their responsibilities, and the appropriate use of different funding sources, including the Climate Change Fund.
Recommendation 7B
Leading advocacy for Commonwealth policy change to address structural gaps in adaptation financing, such as a national adaptation finance strategy to drive state and local-level adaptation action.
Recommendation 7C
Providing visibility of NSW Government expenditure on climate change adaptation through regular reporting, supported by guidance of what is considered in scope of this expenditure.
8. Enable communities to drive climate action
Summary
Local communities, First Nations communities and councils have strong local knowledge and connections that can drive local and regional emissions reduction and climate resilience.
Recommendation 8A
Embedding First Nations leadership as a core pillar of climate governance, including by responding to the Aboriginal Disaster Resilience Policy Roundtable communique, to strengthen First Nations community resilience across NSW.
Recommendation 8B
Supporting First Nations communities to investigate how the broader use of cultural fire could contribute towards emissions reduction goals through carbon removals and reduce bushfire-related emissions, in addition to improving climate resilience.
Recommendation 8C
Ensuring net zero and sector plans address the diverse specific needs of regions across the state, supporting and resourcing councils to drive the local change necessary for the transition and in meeting the challenges of adapting to climate change.
Recommendation 8D
Providing greater support to local and regional-scale adaptation initiatives, such as capability and coordination support, which considers the differing challenges and contexts of councils.
Recommendation 8E
Considering whether broader climate change adaptation can be adequately addressed at the local and regional scale through the existing framework set out in the Reconstruction Authority Act 2022 (NSW) for disaster adaptation planning.
Download the report; ''2026 Annual Progress Report''. (PDF: 16.78 MB)
The NSW Net Zero Commission (the Commission) was established under the Climate Change (Net Zero Future) Act 2023 (NSW) (Climate Change Act) to provide expert advice and recommendations on NSW’s approach to addressing climate change.

Net Zero Commission 2026 Annual Progress Report - cpver.
NSW Greens MP and Environment Spokesperson Sue Higginson MLC said, “The Net Zero Commission’s striking report reveals that New South Wales is not on track to meet our legislated emissions reductions targets, and that dangerously we are actually getting further away year-on-year.
“Labor Premier Chris Minns went to the last election promising strong action on climate, but instead his Government has approved 11 new coal projects, in contradiction of the climate science and of his own climate legal framework.
“The Net Zero Commission has been unequivocal in its denunciation of the Minns Labor Government’s reckless NSW Coal Industry Strategy, the idea we can approve new coal extensions and expansions whilst reducing coal emissions is a dangerous fiction.
“People are losing trust in our planning system which is allowing so much harm and driving climate pollution emissions up rather than down. It’s clear that the system is structured to deliver for corporate lobbyists, whether it’s the Premier’s mentor Morris Iemma, his Minerals Council friend Stephen Galilee, and the proponents of data centres.
“The Net Zero Commission has been clear that climate impacts must be accounted for as the paramount concern in planning decisions, whether it is coal, gas, data centres or any other kind of development.
“Former Supreme Court Justice Basten has warned that our planning system’s approach to new coal is legally erroneous and contrary to our international obligations, it is time for the Premier to see the writing on the wall and announce an end to new coal and a moratorium on data centres and change the settings,” Ms Higginson said.