On 20 March 2026, the NSW Environment Protection Authority (EPA) released three key documents outlining the final requirements for licensees relating to climate change. These requirements introduce mandatory greenhouse gas reporting and planning obligations for certain high-emitting facilities in NSW. An Environment Protection Licence (EPL) is issued by the NSW EPA to regulate activities that may impact the environment, including emissions, waste and pollution. If your organisation holds an EPL, you will need to know what this means for you.
The three documents are:
Climate Change Licensee Requirements
Emissions Reporting and Climate Change Mitigation and Adaptation Plans
Greenhouse Gas Mitigation Guide for NSW Coal Mines
At Umwelt, we’ve reviewed these requirements and related material in detail and summarised the key changes below to help our clients, partners and communities understand what’s coming and how it may affect future projects. The first tranche of reporting is due twelve months from now.
The first reporting obligations commence in 2027, with publication deadlines applying from March or August 2027 depending on licence classification.
Which EPL holders must comply with the new climate change requirements?
Facilities that hold environment protection licences and emit over 25,000 tonnes of Scope 1 and 2 carbon dioxide equivalent (CO2-e) emissions per year will need to comply with the new climate change requirements.
Climate change obligations will be embedded into Environment Protection Licence (EPL) conditions, treating greenhouse gas emissions in a similar way to other regulated pollutants.
This marks a significant shift from voluntary disclosure-only requirements to enforceable licence conditions.
The Climate Change Licensee Requirements will be phased in from 2027 through EPL conditions. These requirements are expected to capture approximately ten per cent of licence holders who are collectively responsible for approximately 50% of NSW’s total greenhouse gas emissions. Typical sectors captured are coal mining, large industrial manufacturing, intensive agriculture (e.g. feedlots and dairies) and large landfills.
Licensees will need to submit an annual emissions report to the EPA. Annual reports will need to include:
- Scope 1 and 2 emissions
- Energy consumed and produced
- Forward-looking emissions forecasts.
These reports are in addition to any required Commonwealth reporting such as National Greenhouse and Energy Reports (NGERs) and the Safeguard Mechanism. The new EPL greenhouse gas emissions reporting requirements threshold is same as NGERs, i.e. 25,000 tonnes of Scope 1 and 2 CO2-e per year. The EPA is also exploring options to enable emissions and energy data reported under NGERS to be provided directly to the EPA in future, including through automated data-sharing arrangements.
What is a Climate Change Mitigation and Adaptation Plan (CCMAP)?
EPL holders that meet the emissions thresholds must also:
- Prepare a Climate Change Mitigation and Adaptation Plan (CCMAP), with an initial focus on mitigation of greenhouse gas emissions, and
- Publish the CCMAP on the licensee’s corporate website, rather than only submitting it to the EPA as the regulator.
CCMAPs must be published by 31 March 2027 or 31 August 2027 depending on the licence type. CCMAPs will contain two distinct parts – a greenhouse gas mitigation component, and a climate change adaptation component and must:
- Identify actions to reduce emissions at licensed premises
- Specify timeframes for implementation
- Demonstrate how mitigation measures align with EPA guidance.
In relation to mitigation – larger emitters – that is, those who are Safeguard Mechanism facilities (100,000 tonnes CO2-e Scope 1 per year), or coal mines that emit more than 25,000 tonnes CO2-e (Scope 1 and 2) per year will need to make their CCMAP publicly available by 31 March 2027, and update it at least every three years.
Remaining facilities that emit more than 25,000 tonnes of CO2-e (Scope 1 and 2) per year will need to make their CCMAP publicly available by 31 August 2027, and update it at least every three years.
CCMAPs must include absolute net emissions goals for the years 2030, 2035 and 2050, broadly consistent with NSW Government targets.
Every three years licensees must report to the EPA their estimated future Scope 1 and 2 emissions for the next 5 financial years. The estimate must include any avoidance or mitigation measures that have been implemented or that are planned to be implemented in the next five years.
The adaptation component will focus on reducing environmental impacts from climate-related hazards and will not need to be developed until further requirements and supporting guidance is released.
The EPA will be providing grant funding for certain licensees to support the development of their CCMAPs.
Where licensees have reported climate change disclosures the EPA will recognise existing plans where appropriate, to avoid duplication.
How the mitigation hierarchy applies to greenhouse gas emissions
The mitigation hierarchy, commonly applied in other areas of environmental management, must be applied. This means that EPL holders must show how they:
- Avoid emissions
- Reduce emissions
- Offset residual emission only after genuine avoidance and reduction.
The EPA may also provide sector specific guidance for mitigation of greenhouse gas emissions.
The first of these sectors is coal mining (see further detail below), particularly relating to fugitive emissions and diesel emissions.
What do the climate change requirements mean for coal mines?
The EPA has a new focus on reducing fugitive methane emissions, and will require coal mines to implement specific mitigation measures by 1 July 2027 for mines outside of the Western coalfields that emit greater than 25,000 tonnes CO2-e (Scope 1 and 2) per year.
The focus on reducing fugitive methane will be implemented through EPL conditions, the development of CCMAPs and through planning applications and modifications. For planning applications and modifications, the EPA expects proponents to commit to emissions reductions consistent with NSW legislated targets.
As noted above, these targets are a 50% emissions reduction by 2030, 70% by 2035 and net zero by 2050. Applications for longer duration consents will be more favourably viewed where proposals include material onsite abatement.
For certain underground mines, Ventilation Air Methane (VAM) must be installed if the mine has consistently greater than 0.20% VAM concentration, is operating after 2030, is located outside the Western coalfields and emits greater than 100,000 tonnes CO2-e (scope 1) emissions per year. Timing for different measures is phased from between 1 July 2030 and 1 July 2034.
For surface mines, the focus is on reducing emissions from use of diesel equipment.
Other sector and industry specific guides for key industries are expected to follow. This could include other regulated sectors such as intensive agriculture and waste management.
For more information on how these changes may affect your projects, or to discuss specific cases, please reach out to your Umwelt contact or our greenhouse gas team via our enquiry form.
