Australia’s NSW to propose new net zero plan in FY26
Australia’s New South Wales (NSW) plans to announce a new net zero plan in the July 2025-June 2026 financial year to reach the state’s existing 2030 and 2035 emissions reduction targets.
This comes on the back of concerns on ongoing progress raised by the Net Zero Commission.
The new plan will be developed over the next 12 months, a spokesperson from the NSW Department of Climate Change, Energy, the Environment and Waster (DCCEEW) told Argus. The plan will include all sectors but will prioritise transport and built environments.
NSW’s total emissions decreased by only 27pc over 2005-22, according to the Net Zero Commission 2024 annual report released in November 2024. This has been followed by a parliamentary inquiry report released in March 2025.
NSW is targeting to cut emissions by 50pc from 2005 levels by 2030 and by 70pc by 2035, but meeting these targets is not guaranteed and NSW will need to increase and accelerate its efforts to remain on track, the reports said. The new net zero plan is part of a government response to the annual report as well as the parliamentary inquiry report by the Joint Standing Committee on Net Zero Future.
NSW also introduced its Energy Security Corporation (ESC), which became fully operational on 1 July, to support decarbonising the state’s electricity grid. The ESC is a government-backed investor with A$1bn ($660mn) of seed funding to invest in renewable electricity, large-scale storage and power networks, according to a joint ministerial media release on 1 July.
There has been criticism from the energy industry about the lack of a viable transition from coal-fired power to renewable energy, according to the National Electricity Market review. The Net Zero Commission is “concerned about the risks to the state’s targets” that the resources sector poses. The government is establishing a regional monitoring network for greenhouse gas (GHG) emissions in response to the commission’s concerns.
NSW is also reviewing its position on coal mining exploration.
The state will reach a 46pc reduction of emissions by 2030 and 62pc by 2035 if it continues to comply with the first stage of its net zero plans, according to the Central Resources of Sharing and Enabling Environmental Data NSW’s Net Zero emissions dashboard.
The role of biofuels is not specifically outlined but will be part of a Renewable Fuel Strategy to be published in mid-2025, according to the NSW government. The Net Zero Commission expects the transport sector to be the largest emitting sector by 2030.
