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Legal Breakthrough: Courts hold that NSW Government must consider climate impacts of fossil fuel developments

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Sue Higginson
NSW Greens MP
24 July 2025

A decision handed down by the NSW Supreme Court of Appeal has today confirmed that the NSW Government under the Planning System must consider the local impacts of climate change of the coal that is burnt, regardless of where that is, as a result of the approval of coal mines in NSW. This recognises the causal link between the impacts of climate change and fossil fuel production.

The Court’s decision has overturned years of denial by the NSW Government and their Independent Planning Commission (IPC), that the planning laws of NSW don’t require scope 3 emissions (emissions from a project that result from the burning of extracted fossil fuels) and their impacts to be considered when assessing fossil fuel projects. 

Greens MP, Solicitor, and spokesperson for Planning and the Environment Sue Higginson said “This decision is a significant legal break through and will send shockwaves through a planning system and a Government that has been failing to take real action to prevent climate breakdown,”

“The years of denial from successive NSW Governments about the facts of the causes of climate change is over. The Court has ruled that the Government bears responsibility for the emissions that they create as a result of the fossil fuel projects they approve. This is a giant leap forward in holding our Governments to account when it comes to the damage they are doing to our climate and local communities through waving through more coal and gas projects,”

“The coal project that has now been knocked back, Mt Pleasant by MACH Energy, was set to be one of the biggest, dirtiest and highest polluting coal projects in NSW. It would have been allowed to continue for another 22 years, smashing our emissions reductions targets and pouring millions of tons of fuel on the climate fire,”

“To date, the NSW Government has been able to hide behind our commitment to the Paris Agreement and the Federal Government’s 43% emissions reduction commitment, that’s now over. The Court has held that that is unacceptable and mere lip service to the obligations under NSW planning law to consider the impact of developments that they approve,”

“Under NSW Law, there is a clear requirement for climate impacts to be assessed when considering polluting projects. The clear and growing scientific body of evidence around the impacts of emissions and the deadly climate impacts hammering our communities has finally cracked through in this decision. The NSW Government will no longer be able to ignore the impacts that emissions are having on our environment and communities when signing off on more coal mines,”

“Once again, it is the work, courage and strength of local communities who are on the frontline of climate breakdown, witnessing the harm that these massive coal mines are doing to their local environments. They have held the government to account through upholding the law in an epic David Vs Goliath battle, I have run these cases in the court and I know how hard they are,”

“There is a legal and moral responsibility to minimise climate emissions to the greatest extent possible. With this decision, the Government must now reckon with the fact that they have a responsibility to the whole planet when it comes to allowing more coal to be dug up and burnt. The status quo of setting emissions reduction targets domestically and then exporting the climate crisis is now broken with this decision,” Ms Higginson said. 

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Sue Higginson
NSW Greens MP
24 July 2025
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