Updated projections for the Net Zero Plan have been released (26 June 2025). This page will be updated shortly.

Topic report card

Overview

CO₂ bars 2030 infographic icon

NSW is projected to reduce emissions to

44–50%

below baseline 2005 levels by 2030

Note with lists infographic icon

Out of 16 initiatives,

3

have been completed and 13 are being delivered

Global and Australian commitments to net zero

Climate change is a global issue.

The Paris Agreement, reached under the United Nations Framework Convention on Climate Change (UNFCCC), commits countries to reducing greenhouse gas emissions.

In 2016, Australia agreed to a nationally determined contribution to reduce greenhouse gas emissions by 26–28% (compared with 2005 levels) by 2030. This commitment was increased in 2022 to a reduction of 43% (compared with 2005 levels) by 2030 and net zero emissions by 2050.

NSW Net Zero Plan

The Net Zero Plan Stage 1: 2020–2030, released in 2020, is the foundation for the NSW Government’s action on climate change and its goal to reach net zero emissions by 2050 (DPIE 2020a).

The Net Zero Plan outlines the NSW Government’s commitment to reducing emissions, while balancing economic needs and the quality of life of the people of NSW. It has four key priorities which guide its emissions reduction initiatives across all sectors of the economy:

  • Priority 1: Drive the uptake of proven emissions reduction technologies.
  • Priority 2: Empower consumers and businesses to make sustainable choices.
  • Priority 3: Invest in the next wave of emissions reduction innovation.
  • Priority 4: Ensure that the NSW Government leads by example.

The NSW Government has passed the Climate Change (Net Zero Future) Act 2023. The main features of this Act are:

  • providing guiding principles to address climate change that consider impacts, opportunities and the need for action in NSW
  • legislating 50% emissions reductions on 2005 by levels 2030, 70% reduction on 2005 levels by 2035 and net zero by 2050
  • setting an adaptation objective for NSW to be more resilient to a changing climate
  • establishing an independent Net Zero Commission to monitor, review, report on and advise on progress towards these targets and objectives.

The Net Zero Commission commenced operations in July 2024. The Commission builds on the NSW Net Zero Emissions and Clean Economy Board, the advisory body established under Section 34 of the Energy and Utilities Administration Act 1987. The Commission released its first annual report in November 2024.

The Net Zero Plan is designed to be adaptable for continual improvement. This includes incorporating new technologies, responding to global trends and policies related to achieving net zero, and using improved data, assumptions and modelling as they become available.

Policies being delivered under the plan include the NSW Electricity Infrastructure Roadmap, NSW Hydrogen Strategy, NSW Electric Vehicle Strategy and NSW Waste and Sustainable Materials Strategy 2041.

See the Greenhouse gas emissions, Energy consumption, Transport and Waste and recycling topics for more information about plans and strategies.

Progress towards Net Zero Plan targets

NSW net emissions in 2022

NSW net greenhouse gas emissions were 111 megatonnes of carbon dioxide-equivalent (Mt CO2-e) in 2021–22 as per the State and Territory Greenhouse Gas Inventories 2022 (STGGI) produced by the Australian Government (DCCEEW-Aus 2024). This value is 27% lower than 2005 levels (DCCEEW-Aus 2024).

The data are used in the Greenhouse gas emissions, Energy consumption and Transport topics.

Modelling future NSW emissions

To track NSW’s progress towards net zero, the NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) produces annual state and economy wide emissions projections. The 2023 projections update is based on the STGGI 2021 (DCCEEW-Aus 2023a). The 2024 update to the STGGI reflects improvements to the land use, land use change and forestry (LULUCF) sector modelling methods, which has led to recalculations across all historical data and an increase in the carbon sink for this sector.

For analytical purposes, this topic presents the 2023 projections update and the associated data used in modelling.

Projections are updated annually, accounting for new inventory data as well as changes to market trends and abatement outcomes for programs.

The 2023 projections indicate that under a ‘business-as-usual’ scenario (defined in Table C3.2), NSW net emissions in 2030 are projected to be 36% lower than the 2005 levels. When emission reductions from Net Zero Plan programs and related policies are considered, NSW net emissions in 2030 are projected to be 44–50% lower than 2005 levels (NSW Government 2024).

These projections suggest that while progress is being made, further effort is required to realise the interim target of 50% reduction relative to 2005 levels is realised by 2030.

Australian emission projections

Australian projections under the ‘with additional measures’ scenario (which includes policies still under consultation) estimate that national emissions will reduce to 358Mt CO2-e by 2030 (see Figure C3.1). This represents 42% emissions reduction on 2005 levels by 2030, which is slightly less than the legislated national target of 43% (DCCEEW-Aus 2023b).

Figure C3.1: Net Australian greenhouse gas emissions (Mt CO2-e), historical (2005–21) and projected (2022–35) under the ‘with additional measures’ scenario

Notes:

Years shown are financial years and so cover the 12 months ending 30 June of that year.
LULUCF = Land use, land use change and forestry.

Source:
DCCEEW-Aus 2023a

Most projected emissions reductions in Australia are due to the decarbonisation of the electricity sector as we transition to renewable energy. This transition involves the uptake in renewable energy sources and the retirement of coal-fired power stations (DCCEEW-Aus 2023b).

Accelerating the rollout of renewable energy in Australia is necessary to meet the 82% renewable electricity target by 2030. Progress is being made, including through the establishment of the Capacity Investment Scheme. However, delays could affect the decarbonisation of the electricity sector and the wider economy.

Safeguard Mechanism reforms are also expected to reduce emissions from stationary energy (excluding electricity), fugitive (escaped) emissions and industrial processes.

Transport emissions in Australia are projected to decrease under the ‘with additional measures’ scenario by 2030, owing to the National Electric Vehicle Strategy measures including a fuel efficiency standard for light vehicles (DCCEEW-Aus 2023b).

NSW emission projections

Net NSW greenhouse gas emissions

NSW is at risk of not achieving its interim target of 50% emissions reduction on 2005 levels by 2030 without further action by NSW Government and the private sector.

The 2023 projections indicate that with existing policies and near-term initiatives, emissions could reduce by 44–50% below baseline 2005 levels by 2030 and by 65–70% by 2035 (NSW Government 2024).

The ‘abatement as currently tracking’ scenario projections, presented in Figure C3.2, reflect the uncertainties in the outcomes of certain emission reduction policies and initiatives. These projections suggest that more effort is required to ensure targets set by the Climate Change (Net Zero Future) Act 2023 will be met.

Although there has been significant increase in renewable energy in NSW, the rollout of renewable energy projects and infrastructure remains slower than required, which could affect the State’s ability to meet its emissions reduction targets (Climate Council 2024).

Figure C3.2: Net NSW greenhouse gas emissions (Mt CO2-e), historical (2005–21) and projected (2022–50) under the ‘abatement as currently tracking’ scenario

Notes:

Years shown are financial years and so cover the 12 months ending 30 June of that year.
Emissions are expressed as CO2-e calculated from global warming potential values from the IPCC Fifth Assessment Report.
The historical net emissions presented here are drawn from the State and Territory Greenhouse Gas Inventories 2021 (DCCEEW-Aus 2023a), which has data until financial year 2020–21. This data is the basis for NSW emissions modelling from 2022–50.
LULUCF = Land use, land use change and forestry.
The projected net emissions are modelled by DCCEEW. Projections indicate what future emissions in NSW could be under the assumptions underpinning the projection. They are dissimilar to forecasts, which predicts actual future events and changes.

The projected net emissions are based on the Net Zero Plan ‘abatement as currently tracking’ scenario (defined in Table C3.2). Projections are updated annually.

Source:
DCCEEW-Aus 2023a DCCEEW 2023

Cumulative emissions

From 2005 to 2022, annual NSW net emissions have slowly decreased (see Figure C3.2). However, the cumulative emissions (running total of emissions over time) have rapidly increased (see Figure C3.3). They will continue to increase until net zero emissions are achieved.

Taking note of cumulative emissions is important because certain greenhouse gases like carbon dioxide and nitrous oxide drives climate change for a long time (IPCC 2021a). This means that even if future emissions were reduced, past emissions still affect global warming.

Cumulative emissions are also crucial to determining the ‘remaining carbon budget’, which is amount of carbon dioxide that can still be emitted while keeping global warming to 2°C (IPCC 2021b).

Current mitigation efforts tend to focus on arbitrary point-in-time targets compared to a baseline year. Impacts of climate change, such as warming temperatures and extreme weather, are projected to worsen over coming decades, highlighting the importance of early mitigation of greenhouse gas emissions where possible to stay within the remaining carbon budget and limit global warming.

Figure C3.3: Cumulative NSW greenhouse gas emissions, 2005–50

Notes:

Years shown are financial years and so cover the 12 months ending 30 June of that year.
Emissions are expressed as CO2-e calculated from global warming potential values from the IPCC Fifth Assessment Report.
The cumulative emissions from 1990–2021 were calculated from the State and Territory Greenhouse Gas Inventories 2021 (DCCEEW 2023), which has data until financial year 2020–21. This dataset is the basis for NSW emissions modelling from 2022–50.

The cumulative emissions from 2022–50 were calculated from projected net emissions on the basis of the Net Zero Plan ‘abatement as currently tracking’ scenario, (defined in Table C3.2). Projections are updated annually.

Source:
DCCEEW-Aus 2023a DCCEEW 2023

NSW greenhouse gas emissions projections by sector

On the basis of existing policies and initiatives, emissions from all sectors are projected by NSW DCCEEW to decline by 2030 relative to their 2005 levels, but to varying degrees. The projections under the ‘abatement as currently tracking’ scenario are summarised by sector in Table C3.1.

For the latest information on NSW emissions by sector, refer to the NSW Net Zero Emissions Dashboard.

Table C3.1: NSW greenhouse gas emissions projections under the ‘abatement as currently tracking’ scenario summarised by sector

Sector2030 projections relative to baseline 2005 levels
Stationary energy (electricity generation)Projected to fall by about 73% owing to transition to renewable energy.
Implementation of the NSW Electricity Infrastructure Roadmap will further increase renewable energy generation, delivery and storage.
See the Energy consumption topic for more details.
Stationary energy (excluding electricity generation)Projected to reduce by 32% as technologies that use fossil fuels are replaced with those that use electricity
TransportProjected to reduce by only 5% and will become the highest source of emissions in NSW, overtaking the stationary energy (electricity generation) sector (see Figure C3.4).
See the Transport topic for more details.
Fugitive emissionsProjected to reduce by 31%, but their proportion of NSW total emissions will increase (see Figure C3.4)
AgricultureProjected to descrease in the short term (2025–30), with 25% reduction by 2030.
Substantial reductions are not anticipated owing to a lack of technology-ready options to significantly reduce enteric fermentation methane emissions from livestock.
Industry processesProjected to decrease in the short term (2025–30), with 21% reduction by 2030
WasteProjected to reduce by 33% assuming targets in the Waste and Sustainable Materials Strategy are achieved
Land use, land use change and forestry (LULUCF)Projected to marginally increase (as a carbon sink) by 2030 as emissions from grassland and cropland remain relatively stable while forest land sink slightly increases.
Current policies are aimed at enhancing carbon sequestration of this sector to help offset emissions from other sectors.

Notes:

The projected net emissions are modelled by NSW DCCEEW. Projections indicate what future emissions in NSW could be under the assumptions underpinning the projection. They are dissimilar to forecasts, which predicts actual future events and changes.

The projected net emissions are based on the Net Zero Plan ‘abatement as currently tracking’ scenario (defined in Table C3.2). Projections are updated annually.

Source:
DCCEEW-Aus 2023a DCCEEW 2023

Comparison of current and future contributions by sector

Viewing the projected emissions by sector shows a clearer picture of how much, proportionally, each sector could change and contribute to overall NSW.

Emissions from stationary energy (electricity generation) are projected to decline significantly as the electricity sector transitions to renewable energy (see Figure C3.4).

The transport sector is set to become the biggest contributor to NSW emissions by 2030, overtaking stationary energy (electricity generation).

Sectors with emissions that are hard to abate, such as fugitive emissions, agriculture, industrial processes and waste, are also expected to contribute a greater proportion of emissions by 2030.

Figure C3.4: NSW greenhouse gas emissions (Mt CO2-e), historical (2020–21) and projected (2029–30) proportions by sector under the ‘abatement as currently tracking’ scenario

Notes:

Years shown are financial years and so cover the 12 months ending 30 June of that year.
Emissions are expressed as CO2-e calculated from global warming potential values from the IPCC Fifth Assessment Report.
The sum of percentages shown above may not add to 100% owing to rounding.
The 2020–21 data presented here are drawn from State and Territory Greenhouse Gas Inventories 2021 (DCCEEW 2023). This dataset is the basis for NSW emissions modelling from 2022–50.
The projected net emissions are modelled by the NSW DCCEEW. Projections indicate what NSW future emissions could be under the assumptions underpinning the projection. They are dissimilar to forecasts, which predicts actual future events and changes.

The projected net emissions in 2029–30 are based on the Net Zero Plan ‘abatement as currently tracking’ scenario, (defined in Table C3.2). Work is underway to update the projections based on the basis of latest inventory data.

Source:
DCCEEW-Aus 2023a DCCEEW 2023

Impact of the Net Zero Plan

Comparison of emissions projections scenarios

Emissions projections used to track progress under the Net Zero Plan are based on ‘business-as-usual’, ‘abatement as originally designed’ and ‘abatement as currently tracking’ policy scenarios.

Table C3.2: Definitions of ‘business-as-usual’, ‘abatement as originally designed’ and ‘abatement as currently tracking’ scenarios

ScenarioDefinition
‘business-as-usual’Accounts for factors affecting NSW emissions but excludes impacts of the Net Zero Plan
‘abatement as originally designed’

Uses the ‘business-as-usual’ scenario and adjusts the trajectory on the basis of designed reductions in current NSW and Australian Government policies.
These include reductions through Stage 1 of the Net Zero Plan, NSW Climate Change Fund under Stages 2 and 3 of the Net Zero Plan, and related policies such as the NSW EPA’s Climate Change Policy and Action Plan and the Commonwealth Safeguard Mechanism.
Projected emissions reductions under the Net Zero Plan also include reductions from a range of strategies and initiatives including the:

‘abatement as currently tracking’Further adjusts the ‘as designed’ trajectory, reflecting uncertainties in expected emissions reductions of certain policies and programs
Source:
DCCEEW 2023

By 2030, the ‘business-as-usual’ scenario is projected to reduce net emissions by 58.7Mt CO2-e or 36% relative to 2005 levels (see Figure C3.5). Reductions will be due mostly to the ongoing decarbonisation of the electricity generation sector. This move away from fossil fuels will not be enough to meet NSW targets.

The Net Zero Plan will further reduce emissions. Emissions reductions from existing programs and policies have been split into two scenarios:

  • The ‘abatement as originally designed’ scenario is projected to result in a further reduction of 79.8Mt CO2-e or 50% in annual emissions by 2030. The interim 2030 target will be met under this scenario.
  • The ‘abatement as currently tracking’ scenario is projected to reduce emissions by 71.3Mt CO2-e or 44% in annual emissions by 2030. The interim 2030 target may not be met under this scenario, given the Net Zero Plan’s current trajectory.

Figure C3.5: Comparison of ‘business-as-usual’, ‘abatement as originally designed’ and ‘abatement as currently tracking’ emissions projections

Notes:

Years shown are financial years and so cover the 12 months ending 30 June of that year.
Emissions are expressed as CO2-e calculated from global warming potential values from the IPCC Fifth Assessment Report.
The historical net emissions presented here are drawn from State and Territory Greenhouse Gas Inventories 2021 (DCCEEW 2023), which has data until financial year 2020–21. This dataset is the basis for NSW emissions modelling from 2022–50.
The projected net emissions are modelled by NSW DCCEEW. Projections indicate what NSW future emissions could be under assumptions underpinning the projection. They are dissimilar to forecasts, which predicts actual future events and changes.

See Table C3.2 for definitions of ‘business-as-usual’, ‘abatement as originally designed’ and ‘abatement as currently tracking’ projections.

The vertical lines indicate the years, 2030 and 2035, when NSW has set interim reduction targets of 50% and 70% reduction, respectively, on 2005 levels. Net zero emissions is targeted by 2050.

Source:
DCCEEW-Aus 2023a DCCEEW 2023

For more information on projections under different scenarios, refer to the NSW Net Zero Emissions Dashboard.

Reaching net zero by 2050

Further investment is required to meet the State’s net zero objective.

While technologies on the market today can offer immediate emission reductions, around 35% of the CO2 emission reductions needed in 2050 must come from technologies that are still in development (IEA 2023).

This means that major innovation efforts will be required this decade to develop new technologies and bring them to market.

The next stages of the Net Zero Plan will be developed ahead of 2030 (stage 2) and 2040 (stage 3) to address this challenge.

The NSW Decarbonisation Innovation Study, developed by the Office of the NSW Chief Scientist and Engineer (OCSE 2020), will help guide the direction of NSW action beyond 2030. The study provides valuable insights into the opportunities for NSW to reduce emissions and capitalise on its competitive advantages to transition and grow the economy.

The latest edition of the study, published in November 2023, outlines 47 foundational and sector-specific opportunities to help NSW to continue evolving its approach to the net zero transition. Cross-sector opportunities enhance the effectiveness of decarbonisation initiatives, like infrastructure planning for growth in low-carbon technology and services.

Economic impacts

Net zero initiatives are expected to bring significant economic benefits to the State.

The implementation of the Net Zero Plan, together with the Electricity Infrastructure Roadmap, could result in more than 13,000 jobs by 2035. Up to $39 billion in private investment may also result from this work, the majority expected to be across regional NSW (OECC 2022).

The Climate Change (Net Zero Future) Act 2023 ensures that economic outcomes are a priority of NSW action on climate change through the Net Zero Plan. The act notes among its guiding principles that action to address climate change should be taken in a way that:

  • is fiscally responsible
  • promotes sustainable economic growth
  • considers the economic risks of delaying action to address climate change
  • considers the impact on rural, regional and remote communities.

Other environmental benefits

Initiatives under the Net Zero Plan are expected to have additional environmental and human health benefits associated with renewable energy and carbon sequestration.

These include improvements in air quality, biodiversity and soil health. The NSW Government plans will develop metrics to measure and evaluate the environmental benefits of these initiatives.

Air quality

Air quality is determined by the types and amounts of pollutants emitted into the atmosphere.

Poor air quality can significantly affect human health, increasing the risk of chronic respiratory and cardiovascular disease and mortality (WHO 2013).

Major sources of human-generated air pollutants come from burning fossil fuels for energy generation, motor vehicles and industry. In 2013, motor vehicles accounted for 55% of Sydney’s human-generated nitrogen oxide (NOx) emissions, 13% of volatile organic compound (VOC) emissions and 13% of particulate matter (PM2.5) emissions (NSW EPA 2019).

See the Air quality topic for more about air pollutants and their health impacts.

Biodiversity and soil health

Protecting biodiversity and soil health now will safeguard our soils for future generations.

Climate change impacts will exacerbate the loss of organic carbon from soils and reduce agricultural productivity (AdaptNSW n.d.). The Net Zero Plan supports initiatives within the agricultural and land sectors to manage biodiversity and soil health while also reducing greenhouse gas emissions.

Carbon farming reduces atmospheric greenhouse gas levels by sequestering, or locking away, atmospheric carbon through vegetation and soils. It may also mitigate land degradation by retaining or enhancing native vegetation and improving groundcover.

Indicators have been developed to measure the condition of biodiversity and ecological integrity at state and regional scales through the Biodiversity Indicator Program.

Private entities in the agricultural sector are implementing frameworks for agricultural producers to assess and monitor the environmental condition of their farms (for example, Meat and Livestock Australia’s Environmental Credentials program).

See the Soil condition topic for more information.

Status of initiatives

This section outlines how the following sectors are being transformed and tracks their performance across Net Zero Plan priority areas.

The updates presented in Tables C3.3–9 pertain at the time of publication. The NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) provides periodic Implementation Updates.

Table C3.3: Energy-related initiatives and implementation status

StatusInitiative

Being delivered

The first Renewable Energy Zone in Central-West Orana received planning approval in June 2024.

Four more Renewable Energy Zones are in various stages of planning.

The Net Zero Plan includes a range of lower emissions energy initiatives being delivered as part of the NSW Electricity Infrastructure Roadmap (DPIE 2020b).

The roadmap supports the development of new electricity infrastructure in NSW. It will support the private sector to bring 12 gigawatts (GW) of renewable energy and 2GW of storage, such as batteries and pumped hydro, online by 2030.

The roadmap will support the development of five Renewable Energy Zones in the Central-West Orana, New England, South West, Hunter-Central Coast and Illawarra regions of NSW.

The first Renewable Energy Zone in Central-West Orana will initially unlock at least 4.5GW of new network capacity by the late 2020s and is expected to bring up to $20 billion in private investment to the region by 2030. At its peak, it is expected to support up to 5,000 construction jobs.

Being delivered

The Energy Savings Scheme has been operational since 2009, resulting in 48,000GWh of energy savings.

The Peak Demand Reduction Scheme commenced in 2022.

The Renewable Fuel Scheme will commence in 2026.

The Energy Security Safeguard aims to improve the affordability, reliability and sustainability of energy in NSW. It includes the Energy Savings Scheme, the Peak Demand Reduction Scheme, and the Renewable Fuel Scheme.

The Energy Savings Scheme is NSW’s largest energy efficiency program. It is legislated to run until 2050. The scheme avoided emissions of about 23Mt CO2-e from 2009–22.

The Peak Demand Reduction Scheme commenced in late 2022 and creates incentives for activities that reduce electricity demand at peak times. Reducing peak demand improves the reliability and resilience of the electricity system.

The Renewable Fuel Scheme, commencing in 2026, will provide financial incentives to produce renewable fuel such as green hydrogen.

Being delivered

Most energy initiatives so far are delivering outcomes that support Priority 1 of the Net Zero Plan which is to drive the uptake of proven emission reduction technologies.

Other initiatives are designed to empower customers to make informed decisions about their energy use, which addresses Priority 2 of the Net Zero Plan. Energy Saver provides information about how households and businesses can switch to lower emission retailers and energy solutions that best fit their needs.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPIE 2020b DPIE n.d.

Table C3.4: Transport-related initiatives and implementation status

StatusInitiative

Being delivered

Rebates and stamp duty exemptions for EVs ran from 1 September 2021 to 31 December 2023.

Development of a fast-charging network for EVs across NSW is in progress.

The NSW Electric Vehicle Strategy (DPIE 2021a) was launched in June 2021, giving effect to the commitment to increase the uptake of electric vehicles (EVs). Targets include growing sales of new passenger and light commercial EVs to 52% of the market by 2031 and the vast majority by 2035.

The strategy has several facets:

  • 100% of new NSW government passenger fleet vehicles to be electric by 2030, 50% by 2026.
  • A $105 million EV fleets incentive program uses a reverse auction process to provide incentives to increase EVs in council and private fleets. Three rounds of the program have been held so far, with Round 4 currently underway.
  • Investment of $149 million to ensure a widespread and world-class fast charging network across the state. Fast charging grants support private industry to build, own and operate fast charging stations across NSW.
  • EV destination charging grants provides funding of up to 75% of costs for installation of eligible alternating current and low power direct current chargers. The program is expected to co-fund the installation of approximately 1,500 charge ports at 600 sites across NSW at places such as motels, cafes, wineries and visitor information centres. As of October 2024, 660 charge ports at over 500 sites are already operational across regional NSW.
  • EV kerbside charging grants are supporting the installation of on-street chargers in local government areas with low access to off-street parking. Round 1 provides funding for over 650 charging ports at almost 400 sites. Round 2 is currently underway.
  • EV ready buildings scheme will co-fund upgrades to electrical infrastructure in about 100 medium and large apartment buildings. It is designed to support drivers who live in apartment buildings to be able to charge their vehicle at home. The first stage of the program was launched in mid-October 2023 and closed to new applicants in December 2023 owing to high demand high demand. The second stage of the program opened in August 2024 with applications undergoing assessment as of October 2024.

EV rebate and stamp duty exemptions were available from 1 September 2021 until 31 December 2023. They entailed:

  • Rebates of $3,000 on sales of the first 25,000 EVs valued at under $68,750. About 15,000 rebates were provided as of October
  • Stamp duty exemption for EVs under $78,000. Almost 37,900 exemptions were provided as of October 2024

These initiatives are supporting Priorities 1, 2 and 4 of the Net Zero Plan by driving the uptake of proven emission reduction technologies, supporting consumers to make sustainable choices, as well as reducing government transport emissions.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPIE 2021a

Table C3.5: Industry-related initiatives and implementation status

StatusInitiative

Being delivered

Funds provided for various initiatives, including green hydrogen and clean technologies.

Grant applications under the Net Zero Manufacturing Initiative are currently under assessment, with results expected in early 2025.

The Net Zero Industry and Innovation Program was announced by the NSW Government in March 2021. This $750 million program focuses on supporting NSW industry and business to capitalise on the opportunities in the global transition to net zero (DPIE 2021b).

The program has three focus areas:

  • new low carbon industry foundations lays the foundations for low emissions industries by building infrastructure and increasing the capability of NSW supply chains
  • high emitting industries supports existing, high-emitting industrial facilities in NSW to transition plant, equipment and other assets to low-emission alternatives
  • clean technology innovation supports the development and continued innovation of emerging clean technologies The Office of the NSW Chief Scientist and Engineer and the NSW Environmental Trust funded the NSW Decarbonisation Innovation Hub in June 2022 to support collaborations between researchers, industry and government.

Since 2021, the program has:

  • reduced about 0.5Mt CO2-e per year through the Orica Tertiary Abatement Project, which addressed nitrous oxide emissions from chemical manufacturing plants
  • funded 3 scoping studies to support high emitting manufacturing facilities in the aluminium, chemicals and agribusinesses develop options to decarbonise their operations
  • developed best-practice regional decarbonisation pathways for Hunter and Illawarra regions
  • made green hydrogen incentives available
  • awarded funding to establish hydrogen hubs across the state
  • introduced GreenPower, Australia’s first green gas certification
  • awarded $15.9 million funding in Round 1 of the Clean Technology Innovation program for businesses and researchers to develop low-emissions technologies.

In February 2024, the NSW Government launched the Net Zero Manufacturing Initiative. This includes funding for:

  • round 2 of Clean Technology Innovation (up to $25 million) that will support the commercialisation of emerging clean technologies
  • Low Carbon Product Manufacturing (up to $100 million), which will establish local industrial facilities and manufacturing capabilities for low carbon industries
  • Renewable Manufacturing (up to $150 million) that will increase local capacity to manufacture components for renewable energy projects, alleviating supply chain constraints and increasing the State’s capability to support the Renewable Energy Zones and hydrogen hubs.

Being delivered

Hydrogen hubs will help decarbonise hard-to-abate sectors.

The NSW Hydrogen Strategy is a plan to support industries and innovators to rapidly increase the scale and competitiveness of green hydrogen in NSW (DPIE 2021c). It provides up to $3 billion in support for the hydrogen industry through:

  • exemptions for green hydrogen production from government charges
  • a 90% exemption from electricity network charges for green hydrogen producers who connect to parts of the network with spare capacity
  • incentives for green hydrogen production.

The strategy is expected to attract up to $80 billion of investment in NSW and to drive decarbonisation in hard-to-abate sectors like industry and transport.

The Net Zero Industry and Innovation Program will help scale up hydrogen as an energy source and feedstock.

As part of the New Low Carbon Industry Foundations stream, over $109 million has been allocated to develop hydrogen hubs in the Hunter, Illawarra and Moree regions.

These hubs will combine demand from existing and emerging hydrogen users to deliver the fuel in a coordinated fashion that will drive scale, reduce costs, focus innovation and grow workforce skills. Their aim is to accelerate the growth of the State’s clean hydrogen industry and unlock the heavy transport sector as a key new market for clean hydrogen demand. They aim to produce green hydrogen from 2026 onwards.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPIE 2021b DPIE 2021c

Table C3.6: Waste-related initiatives and implementation status

StatusInitiative

Being delivered

Delivery of various programs are underway.

The target is net zero emissions from organic waste to landfill by 2030.

The NSW Waste and Sustainable Materials Strategy 2041: Stage 1 2021–2027, launched in June 2021, outlines actions to deliver on the NSW Government’s long-term objectives to transition to a circular economy (DPIE 2021d).

This $356 million strategy will help deliver priority programs and policy reforms that minimise waste and value resources while decarbonising the economy.

Some features of the strategy include:

  • mandating the collection of food and garden organics for select businesses by 2025 and all NSW households by 2030, with $65 million to help with the transition
  • introducing regulatory measures to require gas capture and net zero emissions from landfills with $7.5 million invested in the installation of gas capture infrastructure
  • the $37 million Carbon Abatement and Recycling Fund to support innovative circular economy approaches to manage waste and materials more efficiently and reduce emissions. This includes the use of low-carbon recycled materials, trialling new approaches to reduce waste and improve recycling, help businesses co-locate in areas like the Clean Manufacturing Precincts and Special Activation Precincts, and support the recovery of biogas from organic waste materials.

This strategy contributes to the Net Zero Plan Priorities 1 and 2 to drive the uptake of emission reduction technologies and empower consumers and businesses to make sustainable choices.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPIE 2021d

Table C3.7: Land use-related initiatives and implementation status

StatusInitiative

Being delivered

The NSW Government has awarded $6.8 million to six project partners in the primary industries and land sector to reduce emissions. Further grants will be offered in late 2024.

Through the Primary Industries Productivity and Abatement Program, the NSW Government is investing $105 million this decade to support farmers and land managers across the state to reduce their emissions improve their carbon management, and enhance biodiversity on their land alongside production (DPIE 2024a).

The program will also support the sector to increase revenue by giving access to environmental markets, accelerating finance for natural capital and low carbon farming, and demonstrating environmental performance to consumers and the supply chain.

Grant funding of $6.8 million has been awarded to six ‘high impact partnerships’ (DPIE 2024b).

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPI 2018 DPIE 2024a DPIE 2024b

Table C3.8: Agriculture-related initiatives and implementation status

StatusInitiative

Being delivered

A report on key findings of various primary industries research projects was published in 2023.

Strategies to reduce methane from livestock was published in 2021.

The NSW Primary Industries and Regional Development Climate Change Research Strategy, supported by a $29.2 million investment from the NSW Climate Change Fund, provides insights to government, producers and industry of opportunities for timely and appropriate responses to the changing climate, carbon markets and energy opportunities (DPI 2018). A report published 2023 provides key findings of research projects under the strategy and recommendations for practical implementation (DPI 2023).

Strategies to reduce methane from livestock and its effects on productivity and animal health was published in 2021 (Almeida et al. 2021).

Notes:

Updates have been provided by NSW DCCEEW.

Source:
Almeida, Hegarty & Cowie 2021 DPI 2023

Table C3.9: Built environment-related initiatives and implementation status

StatusInitiative

Complete

Over 50 industry bodies have joined MECLA.

Launched in early 2021, the Low Emissions Building Materials Program entailed partnership between NSW Government and industries to grow the demand for low emissions building materials such as ‘green’ steel and concrete. This will help to reduce embodied carbon, which refers to the greenhouse gas emissions generated in manufacturing and transporting materials and products used in construction (DPIE 2021e).

In partnership with World Wide Fund for Nature-Australia, the Materials Embodied Carbon Leaders’ Alliance (MECLA) was formed in April 2021. This alliance includes professionals from the building industry and government. Major suppliers and users of steel and concrete are participating to develop standards for low-emission alternatives.

The program concluded in 2022. The alliance, funded and led by industry, remains in operation.

The Low Emissions Specifications program is leading the development, trial and implementation of low carbon concrete specifications for select NSW government agencies and local councils.

Being delivered

NABERS continues to expand to accelerate the transition to net zero buildings.

The National Australian Built Environment Rating System (NABERS) measures the energy, water, waste and indoor environmental impacts of buildings in Australia on a one to six-star rating scale (NABERS 2024).

NABERS ratings are available in various sectors, including offices, apartments, shopping centres, hotels and data centres, public schools and retail stores.

The NSW Government is investigating plans to increase the uptake of NABERS ratings for public schools and hospitals in NSW, as part of Priority 4 of the Net Zero Plan.

Moreover, to help reduce emissions in the construction of new Australia’s commercial buildings, NABERS has released tools, including an emissions factors database, to measure and analyse embodied carbon.

These initiatives address Priority 2 of the Net Zero Plan by empowering consumers and businesses to make sustainable choices in designing and using the built environment.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
DPIE 2021e NABERS 2024

Table C3.10: Government-related initiatives and implementation status

StatusInitiative

Complete

60MW / 120MWh battery energy storage system in Riverina to support the NSW Government electricity contract.

As part of a 10-year contract with Shell Energy, a 60 megawatts (MW) / 120 megawatt hours (MWh) battery energy storage system near Darlington Point in the Riverina commenced operations in October 2023 to help power schools, hospitals and government buildings across NSW (Edify Energy 2023).

Complete

The policy applies to projects that initiate a strategic business case after April 2025.

The NSW Government’s Decarbonising Infrastructure Delivery Policy (Infrastructure NSW 2024a) and accompanying Embodied Carbon Measurement for Infrastructure Technical Guidance (Infrastructure NSW 2024b) were released in April 2024 to help NSW Government agencies manage embodied carbon in public infrastructure projects.

Infrastructure NSW worked with the Australian Department of Infrastructure, Transport, Regional Development, Communications and the Arts and other state jurisdictions to adapt the Measurement Guidance for national use.

Being delivered

Solar PV installations on government property are underway.

Under the NSW Government Resource Efficiency Policy, all NSW Government agencies are required to achieve measures, targets and minimum standards to reduce energy and water use and improve waste management and air quality (DCCEEW 2019).

The Net Zero Plan set a new target for government buildings to generate a total 126,000MWh of annual solar energy by 2024. As of 30 June 2023, over 100,000MWh of annual solar generation had been installed.

Being delivered

Circular design guidelines for the built environment were released in February 2023.

The Choose Circular program has kicked off projects with 10 government agencies to date.

The NSW Waste and Sustainable Materials Strategy 2041 (DPIE 2021d) recognises the NSW Government’s role in leading circular economy. It includes the following actions:

  • requiring NSW Government departments to preference the use of recycled material on an ‘if not, why not’ basis. This is action is supported by the $13 million Circular Innovation Fund, identifying opportunities to embed circular design principles in new NSW Government buildings, infrastructure and precincts.
  • requiring that all NSW Government-owned and leased buildings over 1,000 square metres obtain and publish a NABERS Waste Rating by 2026, to drive waste avoidance and recycling in government operations.

The Choose Circular program, funded by the Circular Innovation Fund, aims to stimulate circular economy innovation and increase the uptake of recycled materials through NSW Government procurement.

Being delivered

More electric buses in Sydney.

$33 million to transition government fleet to EVs.

The Net Zero Plan identified commitments to transition the NSW public transport system to low emissions.

Transport for NSW released its Net Zero and Climate Change Policy in October 2023, with a range of emissions targets including:

  • 100% renewable energy for the rail, light rail and metro train networks by 2025
  • net zero operational and fleet emissions by 2035
  • net zero embodied emissions by 2045
  • net zero transport sector emissions by 2050 (TfNSW 2023).

The Zero Emission Buses Transition Plan aims to replace NSW’s 8,000-vehicle bus fleet with electric buses. This plan aims to complete the transition in Greater Sydney by 2035, in Outer Metropolitan regions by 2040 and in Regional NSW by 2047.

The NSW Electric Vehicle Strategy (DPIE 2021a) commits
$33 million to electrifying the NSW Government passenger fleet by 2030. It sets an interim target of 50% EV procurement by 2026.

These initiatives are in line with Priority 4 of the Net Zero Plan for the NSW Government to lead by example on the road to net zero emissions.

Notes:

Updates have been provided by NSW DCCEEW.

Source:
OEH 2019 Edify Energy 2023 Infrastructure NSW 2024a Infrastructure NSW 2024b DPIE 2021a TfNSW 2023 DPIE 2021b

How we are keeping track

The status of initiatives in the Net Zero Plan have been reported in NSW State of the Environment since 2021. To track NSW’s progress towards net zero, NSW DCCEEW produces annual state- and economy-wide emissions projections. Projections are updated annually, accounting for new inventory data as well as changes to market trends and abatement outcomes for programs and reported on the Net Zero Emissions Dashboard.

The reporting requirements will be reviewed after the current 2024 report with the Net Zero Commission. The Commission released its first annual report in late 2024, providing insights on the State’s progress to net zero.

Various NSW Government agencies provided advice on NSW emissions projections, status of programs and initiatives, ongoing research and other relevant matters.

NSW DCCEEW will continue to provide annual emissions projections updates, reflecting changes in data and assumptions. This, along with program evaluations, may lead to improved understanding and adjustment of programs.

The Office of the NSW Chief Scientist and Engineer will continue to report on emerging technologies that reduce emissions and are commercially competitive through its NSW Decarbonisation Innovation Study. The latest of these reports was published in November 2023.

References