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NSW Fails to Meet Climate Targets Due to Coal Mines and Data Cent

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Higher planning hurdles needed for coal mines and data centres: watchdog

New South Wales is sleepwalking towards a climate catastrophe as greenhouse gas emissions continue to rise, with the state government’s inaction on coal mines and data centres hobbling progress on renewable energy. The latest annual report from the independent Net Zero Commission highlights the alarming gap between current policies and the state’s legislated targets of 50% reduction by 2030 and 70% by 2035.

The commission’s report notes that while the NSW government has made some strides in reducing emissions through household energy efficiency measures and cleaner transport, more needs to be done. Current policies are on track for only a 44% reduction by 2030 and 56% by 2035, making it increasingly clear that NSW will not meet its climate commitments without drastic changes.

The commission’s focus on planning decisions is particularly telling. The government must take into account the legislated targets when approving coal mine extensions and data centres. For example, the Hunter Valley Operations (HVO) North and South proposal, described as “the largest coal mining proposal in NSW history” by the Environment Protection Authority, poses significant challenges to meeting the state’s climate commitments.

Data centres are also hindering progress on renewable energy. While they present opportunities for investment in new renewable energy projects, they are becoming increasingly water-hungry and power-intensive. The commission’s report notes that the rollout of renewable generation, storage, and transmission is behind schedule, making it even more pressing to address the issue of data centres.

Climate Change Minister Penny Sharpe has stated that NSW is building “the jobs and industries of the clean energy future.” However, this assertion rings hollow in light of these findings. If the government is serious about meeting its climate targets, it must take bold action on coal mines and data centres. This means increasing the use of technologies proven to drive down emissions, ensuring planning assessments support rather than hinder progress towards the state’s targets.

Reducing methane emissions, which currently make up 30% of NSW’s emissions, is also crucial. Implementing existing avoidance and abatement options to reduce emissions from livestock, landfills, and coal mines should be a priority. Furthermore, the closure of coal power stations, particularly Eraring power station, must not be delayed further.

The world is grappling with climate change, and it’s becoming increasingly clear that NSW is falling behind. The government’s inaction on coal mines and data centres is a stark reminder of its failure to take climate commitments seriously. It’s time for bold action, not just promises.

Reader Views

  • CM
    Columnist M. Reid · opinion columnist

    The Net Zero Commission's report is a stark reminder that NSW's climate targets are nothing more than pie-in-the-sky aspirations unless we tackle the behemoths of coal mining and data centres head-on. But what about the jobs? Climate Change Minister Penny Sharpe claims NSW is building "the jobs and industries of the future", but it's a hollow promise when those jobs come with a carbon price tag that can't be ignored. The real challenge lies in diversifying our economy, not just slapping a green label on old-school industries. It's time to confront the reality: some industries will need to adapt or disappear if we're serious about meeting our climate commitments.

  • AD
    Analyst D. Park · policy analyst

    The NSW government's foot-dragging on coal mines and data centres is not just a matter of missed targets, but also a betrayal of its own climate change ambitions. While Minister Penny Sharpe boasts about building "the jobs and industries of the clean economy", her government's policies continue to prop up polluting sectors that are fundamentally incompatible with our renewable energy future. What's missing from this narrative is the sheer scale of job displacement that will occur when coal mines are finally phased out - policymakers need a comprehensive transition plan to ensure workers are retrained for the emerging low-carbon economy, not just rhetoric about "building industries".

  • RJ
    Reporter J. Avery · staff reporter

    The NSW government's inaction on coal mines and data centres is more than just a missed opportunity – it's a deliberate choice that prioritizes short-term economic gains over long-term climate sustainability. The Net Zero Commission's report highlights the need for higher planning hurdles for these high-emissions projects, but what's missing from the conversation is the role of vested interests in shaping policy decisions. We can't expect meaningful change without addressing the influence of powerful lobby groups and their ties to government officials.

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