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Environment & Energy

Protecting koala habitat, native vegetation and our coastline while building renewable energy zones, transmission, storage and system security with genuine community benefit-sharing — measured against the state's own published dates.

2050

a 2020 parliamentary inquiry warned koalas are on track to be extinct in the wild in New South Wales before this year, without intervention

5zones

declared Renewable Energy Zones — plus major transmission upgrades and large-scale storage

48.9°C

recorded at Penrith in January 2020 — reported that day as among the hottest places on Earth

Figures from the policy below — the 2020 parliamentary inquiry into koala populations, the state's five declared Renewable Energy Zones, and the Penrith reading of January 2020.

Interactive · The changeover

Retire the coal. Throw the breakers.

Part 03 names the whole replacement: five declared Renewable Energy Zones, major transmission upgrades, large-scale storage. Drag the decade to retire the coal units — and throw the breakers before the replacement gap opens under you.

The replacement gap

Closed every retired unit has its replacement behind it.

3 of 3 coal units retired · 7 of 7 breakers on · 3 of 3 retired units covered

This timeline needs JavaScript. Without it the board is shown finished: all seven breakers on, all three coal units retired and the replacement gap closed. The timeline carries no dates.

How to read this board

A sequencing illustration of the plan architecture part 03 names — the order in which the replacement covers the retirements. Not a capacity estimate, and the timeline carries no dates. Throw the transmission breaker first: a zone built before the bus is built, and connected to nothing.

Price spikes · Taxpayer-underwritten stopgap

Part 03: “Delayed replacement means price spikes and, as the extension of the state's largest coal plant showed, expensive taxpayer-underwritten stopgaps.”

Stopgap avoided.

The units coming off — schematic

retired retired retired

The state's ageing coal-fired power stations are “approaching the end of their working lives”. Three schematic units stand in for the fleet — the policy gives no number. The bars are wear, not dates.

The seven breakers

Transmission bus live — every zone has somewhere to send it

Shared infrastructure — the gate

The five declared zones

Support is conditional — the five conditions in part 03

  • Genuine benefit-sharing — payments to landholders hosting transmission at the published Strategic Benefit Payments rate, indexed as designed and additional to easement compensation (EnergyCo, 2025b), and community benefit funds sized to the scale of the projects and controlled locally rather than administered from Sydney. Where those funds are ultimately paid for through access fees (EnergyCo, 2025a), say so. Condition met.
  • Honest early engagement on transmission routes and project siting, with cumulative impacts on farmland and communities assessed openly rather than corridor by corridor. Central-West Orana is a live demonstration of what a construction decade does to a district; New England, still in planning (NSW DCCEEW, 2025), is the chance to do the engagement before the route is fixed rather than after. Condition met.
  • Local jobs and apprenticeships written into REZ contracts, so the construction decade trains a regional clean-energy workforce rather than flying one in. EnergyCo's own forecast of about 1,850 construction jobs against about 930 ongoing operational jobs from 2034 (EnergyCo, 2026) is exactly why this matters: the construction peak passes, and what a region keeps is whoever was trained during it. Condition met.
  • Firming and storage on evidence — batteries, pumped hydro and demand management assessed on cost and reliability, with the results published, and with system strength and inertia procured explicitly rather than hoped for (Australian Energy Market Operator, 2025c). Condition met.
  • Demand-side assumptions tested in public — the state's own monitor assumes 900 MW of additional peak demand from data centres by 2033-34 (NSW DCCEEW, 2025). If large new loads are to be accommodated, the terms on which they connect, and whether they contribute to firming, should be a public decision rather than a modelling input. Condition met.

“The Australian Democrats support this build-out.” — and part 03's very next condition: “But support is conditional on doing it decently.”

Schematic of the plan architecture named in part 03 — five declared zones, transmission, storage. Three schematic units stand in for the coal fleet; the policy gives no number, and the bars are wear, not dates.

What cannot be replaced

Protect what cannot be replaced

New South Wales is still clearing native vegetation faster than nature can restore it, and the statutory review of the Biodiversity Conservation Act found the current framework is not meeting its objectives. The state's own biodiversity offsets scheme has been criticised by the Auditor-General and by parliamentary committees for promising environmental gains it cannot demonstrate. But the underlying data is more mixed than the shorthand allows — and the mix matters, because it changes what you would actually do about it.

What the clearing data actually shows

The 2024 NSW vegetation clearing report, produced from the Statewide Landcover and Trees Study, records 24,103 hectares of native woody vegetation cleared in 2024 — 19 per cent below the 2018–2024 average of 29,800 hectares, continuing a declining trend since the Land Management Framework began in 2018 (NSW DCCEEW, 2026a). That is a genuine improvement and we should say so plainly rather than pretend nothing has changed since 2016.

The same report records at least 57,190 hectares of native non-woody vegetation cleared — native grasslands, wetlands and shrublands — which is 13 per cent above the 2018–2024 average of 50,700 hectares (NSW DCCEEW, 2026a). Cumulatively since the framework began, 208,700 hectares of woody and 355,000 hectares of non-woody native vegetation have been cleared (NSW DCCEEW, 2026a). Woody clearing is falling. Non-woody clearing is rising. A debate conducted only about trees will miss more than half of what is being lost, and the grassy ecosystems disappearing fastest are among the most poorly reserved in the state.

The harder number is the one nobody can explain. Of the clearing detected in 2024, 71,220 hectares was attributed to agriculture, 7,268 hectares to infrastructure and 2,805 hectares to native forestry harvesting — but 49,146 hectares, 60 per cent of the total, could not be matched to any approval or exemption at all (NSW DCCEEW, 2026a). We will not call that unlawful clearing, because it is not a finding of illegality; "unallocated" is a data-matching category, and a good deal of it will turn out to be lawful activity the reporting system simply cannot reconcile. It is still an accountability failure. A regulator that cannot account for three-fifths of the clearing it detects cannot tell the public whether its own rules are working. The data also lags by roughly 18 months, so 2024 is the most recent year available — which is a further argument for faster, better-matched reporting rather than for more adjectives.

A scheme that was audited, then reviewed, then only half-commenced

The Auditor-General's 2022 performance audit of the Biodiversity Offsets Scheme did not hedge. It found the then Department of Planning and Environment "has not effectively designed core elements of the Scheme" and had no clear strategic plan for implementing it (Audit Office of New South Wales, 2022). The specifics are worse than the adjectives usually used about them: 96 per cent of developer demand for species credits was unmet; 97 per cent of species credits had never been traded at all; only 60 per cent of 226 Biodiversity Stewardship sites were under active management; $90 million in developer obligations had been paid into the Biodiversity Conservation Fund; and only 20 per cent of developer obligations transferred to the Biodiversity Conservation Trust had been acquitted (Audit Office of New South Wales, 2022). The audit made 11 recommendations. It is fair to note that the audited entity has since been restructured, with responsibilities split between the environment and planning departments, and that the audit predates the 2024 amending Act — so it should be read as the baseline the reforms are meant to answer, not as a description of the scheme today.

The independent statutory review of the Biodiversity Conservation Act 2016, led by Dr Ken Henry AC and tabled in the NSW Parliament in August 2023, went further than the offsets machinery. It found the Act was not meeting its primary purpose of maintaining a healthy, productive and resilient environment and was never likely to do so, that biodiversity was not being conserved at either bioregional or state scale, and that only around half of the state's threatened species could be expected to survive the next hundred years; it recommended refocusing the Act toward a nature positive framework with stronger ecosystem-level protections (NSW Department of Planning and Environment, 2023). That is a structural finding, not a performance one — the distinction being that a scheme which is merely underperforming can be administered better, while a scheme that cannot succeed as designed has to be redesigned.

The Government's response, the Plan for Nature released in July 2024, accepted 49 of the 58 recommendations, while declining to give the Biodiversity Conservation Act primacy over planning law and ruling out mapping "no-go" zones (NSW DCCEEW, 2026b). The Biodiversity Conservation Amendment (Biodiversity Offsets Scheme) Act 2024 passed in November 2024 and commenced on 7 March 2025. It embeds the avoid–minimise–offset hierarchy, requires the scheme to transition toward net positive biodiversity outcomes guided by a net positive strategy, and reduces reliance on the Biodiversity Conservation Fund by allowing regulations to specify circumstances in which the fund cannot be used (NSW DCCEEW, 2026b). Supporting amendments to the Biodiversity Conservation Regulation 2017 were on public consultation from 5 June to 17 July 2026.

So the honest question in 2026 is not whether to reform the offsets scheme. It is whether the reform already legislated ever fully starts. One set of provisions did not commence with the rest: the provisions on assessing genuine measures to avoid and minimise biodiversity impacts remain uncommenced (NSW DCCEEW, 2026b). That is a fact about commencement rather than an accusation — but it is precisely the element that makes offsetting a last resort instead of a first convenience. An avoid–minimise–offset hierarchy with the avoid-and-minimise test switched off is an offset scheme with a longer name.

What the koala inquiry actually found

The koala has become the emblem of what is at stake, and the 2020 parliamentary inquiry's warning has a precise form worth quoting. Portfolio Committee No. 7 of the Legislative Council found, at Finding 2, "that, given the scale of loss to koala populations across New South Wales as a result of the 2019-2020 bushfires and without urgent government intervention to protect habitat and address all other threats, the koala will become extinct in New South Wales before 2050" (Legislative Council Portfolio Committee No. 7, 2020). That was a committee finding rather than a government or scientific determination, and it was one of 16 findings accompanied by 42 recommendations.

Three of the committee's other findings are more useful to policy than the headline. Finding 1 was that "the current estimated number of 36,000 koalas in New South Wales is outdated and unreliable" — meaning the state has been managing a species it cannot count. Finding 3 was "that logging in public native forests in New South Wales has had cumulative impacts on koalas over many years because it has reduced the maturity, size and availability of preferred feed and roost trees". Finding 10 was that "an estimated 24 per cent of koala habitat on public land has been severely impacted across the State, but in some parts there has been a devastating loss of up to 81 per cent" (Legislative Council Portfolio Committee No. 7, 2020). Taken together they describe a problem of habitat quality and continuity, not merely of numbers — which is why a reserve boundary on its own is not the answer.

The Great Koala National Park, and the condition attached to it

The Government has committed to establishing the Great Koala National Park on the Mid North Coast — a commitment we support and would hold it to delivering in full, with secure long-term funding, honest treatment of the state forests involved, and real transition support for affected timber workers and their towns. The September 2025 ministerial release commits to adding 176,000 hectares of state forest to create a reserve of about 476,000 hectares once joined with existing national parks, which the Government says will protect more than 12,000 koalas and 36,000 greater gliders along with habitat for over 100 other threatened species (NSW Government, 2025). It provides $60 million to the National Parks and Wildlife Service to establish the park and $6 million for community and small business support on the Mid North Coast, and applied a moratorium on timber harvesting inside the boundary from 8 September 2025, affecting around 300 jobs and 6 of more than 25 mills in the region (NSW Government, 2025).

Two things follow, and both should be said out loud by people who support the park. The first is that the park is not yet reserved: reservation requires a Bill under the National Parks and Wildlife Act 1974, indicatively flagged for late 2026, and an indicative date is not a reservation. The second is the real test. The Government's own release states that final creation of the park depends on the successful registration of a carbon project under the Improved Native Forest Management Method, which was still moving through Commonwealth assessment (NSW Government, 2025). A conservation outcome contingent on a carbon methodology being approved by another government is a conservation outcome with a financing risk attached, and the public is entitled to be told how that risk is being managed rather than discovering it in a footnote.

The $6 million offered for community and small business support also has to be weighed honestly against 300 affected jobs in towns where the mill is often the largest private employer. We support the park. We do not think a transition package is generous merely because it was announced alongside a good decision.

Beyond the park, we would prioritise mapped koala habitat corridors that link core populations across public and private land, stronger enforcement of clearing rules with accurate, published and faster-reported data, and offset arrangements that are the last resort, not the first convenience — starting with commencing the provisions that were meant to make that true.

The coastline

A coastline under pressure

From Collaroy to Wamberal and along the open coast, storm erosion is already eating into beaches, dunes and homes — and sea levels are rising. Pretending otherwise helps nobody, least of all coastal property owners.

The framework exists; the Auditor-General says it is not being implemented

New South Wales does not lack a coastal management framework. It lacks delivery of one, and in September 2025 the Auditor-General said so directly: "the coastal management framework is not being effectively implemented to manage the NSW coastal environment" (Audit Office of New South Wales, 2025). As at April 2025 — seven years after the framework took effect — only 17 coastal management programs, covering 16 of the state's 55 coastal councils, had been certified by the Minister, against the environment department's own target of 20 certified programs by June 2025 (Audit Office of New South Wales, 2025). Two-thirds of coastal councils are therefore operating without a certified program at all.

The audit also identified where the pressure points sit. In July 2025 the department estimated the total cost of all actions within those 17 certified programs at around $341.6 million — the cost of coastal work already committed to, before the other 39 councils are counted (Audit Office of New South Wales, 2025). The audit found that the environment and planning departments "have identified risks to delivering policy objectives for managing areas at risk from coastal hazards due to incomplete mapping of the coastal vulnerability area"; that the department had itself identified insufficient funding in the Coastal and Estuary Grants Program as a key risk; and that the councils examined — City of Coffs Harbour, Shoalhaven City and Northern Beaches — faced difficulty integrating coastal management actions into their planning because of uncertainty about long-term funding (Audit Office of New South Wales, 2025).

That is a specific diagnosis and it deserves a specific response. The audit examined framework implementation, mapping and funding; it did not make findings about planned retreat or managed relocation, and we do not claim it did.

We support honest, completed coastal vulnerability mapping for the whole NSW coast; proper funding and technical support so councils can complete and implement coastal management programs on a horizon longer than a grant round; clear disclosure of known hazards to property buyers; and evidence-based responses — dune restoration and beach nourishment where they work, planned adjustment where they will not. The worst outcome is the current drift: decisions deferred until an east coast low makes them for us, at which point the state pays for the emergency it declined to pay to prevent.

The same pressure, upstream: the Hawkesbury–Nepean

Coastal pressure is not only erosion. Western Sydney's growth is arriving in the Hawkesbury–Nepean's estuarine reaches as nutrients. The Environment Protection Authority's July 2025 nutrient management framework states that under business as usual, "total nitrogen loads discharged from the 18 treatment plants in the river's catchment are projected to increase by approximately 50% by 2028", and that "the current nutrient load caps in environment protection licences for these 18 plants are not suitable for managing this risk" (NSW EPA, 2025).

Phase 1 of the framework began on 1 July 2025 and runs to 30 June 2030, deliberately aligned to IPART's pricing determination periods. It applies to 15 plants operated by Sydney Water, two by Hawkesbury City Council and one by Veolia, capping total nitrogen and total phosphorus loads across six subzones — Yarramundi 1 and 2, Sackville 1, 2 and 3, and Berowra Creek — at 2007–2018 average levels plus 10 per cent, less the reduction achieved by the Winmalee plant upgrade, with trading and offsets permitted between plants (NSW EPA, 2025). We support this as a serious piece of regulation that starts from a load cap rather than a concentration limit, and we would defend the trading provisions as the cheapest way to hit a catchment-wide number.

Two honesty clauses belong with it. First, the framework regulates sewage treatment plants only, and the EPA notes that diffuse sources — urban, grazing, cropping and intensive agricultural runoff — contribute the majority of the total nutrient load reaching the lower catchment. It is not a whole-of-catchment fix and should not be sold as one. Second, the EPA states that current scientific knowledge does not yet allow an estimate of the load reductions actually required for a sustainable river, with Phase 2 from 1 July 2030 intended to close that gap (NSW EPA, 2025). A cap set at historical levels plus ten per cent is a holding position while the science is done. Holding positions are defensible; permanent holding positions are not, and we would want the Phase 2 science funded and published on time rather than discovered to be late in 2030.

The changeover

Build the energy shift properly — and share the benefit

The state's ageing coal-fired power stations are approaching the end of their working lives, and New South Wales has a genuine plan to replace them: five declared Renewable Energy Zones — Central-West Orana around Dubbo and Dunedoo, New England, Hunter-Central Coast, Illawarra and the South West — plus major transmission upgrades and large-scale storage such as the Waratah Super Battery. The Australian Democrats support this build-out. Delayed replacement means price spikes and, as the two extensions of the state's largest coal plant show, stopgaps that carry real contingent cost to the public.

But support is conditional on doing it decently, and on being straight about where the build actually is.

One zone in the ground, one still in planning

The first Renewable Energy Zone is physically under construction, and it has dates. EnergyCo's Central-West Orana transmission project is intended to unlock "at least 4.5 gigawatts of new network capacity by 2028, to connect 7.7 gigawatts of wind and solar projects", with the network built, financed, operated and maintained for 35 years by ACEREZ, a consortium of ACCIONA, COBRA and Endeavour Energy; work continues through to 2030 (EnergyCo, 2026). EnergyCo forecasts about 1,850 direct jobs in the local area during construction and about 930 ongoing operational jobs from 2034, and expects the zone to attract up to $25 billion in private investment (EnergyCo, 2026). Those are the numbers to hold the Government to — first energisation in 2028, not now, and the ongoing operational jobs arriving six years after that.

The second and larger zone is a different matter. The environment department's Energy Security Target Monitor lists, in its table of transmission projects for monitoring, the New England REZ Network Infrastructure Project Stages 1 and 2 with a planning status of "in planning" — against "approved" for Central-West Orana, HumeLink, the Hunter Transmission Project and Project EnergyConnect Stage 2 (NSW DCCEEW, 2025). No approved transmission project yet exists for the state's largest declared zone. EnergyCo's own publicly reported timetable has the environmental impact statement going to the planning department for exhibition in the second half of 2026, planning approval indicatively targeted for late 2027, and staged transfer capacity of 2.4 GW by 2032 with a further 3.6 GW by 2034. We take the planning status from the department's monitor and treat those capacity dates as what they are — EnergyCo's indicative timetable, not a commitment, and not yet supported by an approval.

The replacement gaps have dates on them

The Energy Security Target Monitor report 2025, published by the NSW environment department in December 2025, is the clearest public statement of the timetable the state is working to. It assumes "expected coal power station closure dates for Eraring Power Station in 2027, Bayswater and Vales Point Power Stations in 2033, and Mount Piper Power Station in 2040" (NSW DCCEEW, 2025). Under its Central scenario it finds "a forecast breach of 274 MW driven by shortfall in the Sydney–Newcastle–Wollongong subregion due to Eraring Power Station's assumed closure in 2027", then sufficient capacity from 2029-30 through 2032-33 once HumeLink and the Hunter Transmission Project are commissioned, and then "a much larger breach in 2033-34 that continues to 2034-35" following the expected closure of Bayswater and Vales Point (NSW DCCEEW, 2025). It also assumes 900 MW of additional peak demand from data centres by 2033-34 — a demand-side assumption that deserves far more public scrutiny than it has had, because it is much of the difference between a manageable gap and a large one.

This is a NSW departmental report rather than an AEMO one, and it is a forecast under a defined scenario rather than a prediction. It is also, on one central assumption, already out of date. On 20 January 2026 Origin Energy announced it had advised AEMO that it would extend operation of all four units of the 2,880 MW Eraring Power Station from 19 August 2027 to 30 April 2029, with its chief executive framing the decision as a response to system security risks identified by AEMO and as giving "more time for renewables, storage and transmission projects to be delivered" (Origin Energy, 2026). This is the second extension: the May 2024 agreement with the NSW Government had already moved closure from August 2025 to August 2027, under an underwriting arrangement capped at $225 million of losses a year (Origin Energy, 2026).

We would state the fiscal position accurately, because both sides of this argument tend not to. Origin has not opted into that underwriting arrangement to date, so it is wrong to say taxpayers have paid for the extension. It is equally wrong to say the arrangement is costless: a capped indemnity is a contingent liability, and the state has now twice found itself negotiating from the weaker side of a closure date. The lesson is not that the extension was wrong — it buys time the system genuinely needs. The lesson is that a state which does not build replacement capacity ahead of a published closure date will keep paying, in one currency or another, to postpone it.

Megawatts are not the only thing in short supply

The less-discussed risk is not energy but system security. AEMO's 2025 Transition Plan for System Security states that "system strength deficits across New South Wales have again been confirmed from 2027-28 with the currently announced Eraring Power Station retirement date", that "Transgrid is expediting the procurement of synchronous condensers with support from the New South Wales government; however, additional measures are necessary to ensure ongoing power system security", and that inertia deficits are likewise forecast from 2027-28 (Australian Energy Market Operator, 2025c). Most pointedly, it finds that "the delivery is currently scheduled about one year after Eraring's announced exit" — the fix arriving after the problem — and warns that if security contracts are unavailable, "operational intervention may be required by AEMO up to 30% of the time, at significant cost to consumers, to avoid potential consequences of greater severity" (Australian Energy Market Operator, 2025c).

That 30 per cent figure should not be quoted as a current forecast, and we will not quote it as one. AEMO wrote it against the then-announced August 2027 Eraring exit; Origin's January 2026 extension to April 2029 pushes the exposure window out and gives the synchronous condensers time to arrive first. What survives the extension is the structural point: the state has been buying megawatts while paying much less attention to the physical properties — system strength and inertia — that coal generators supplied incidentally and that replacement plant has to be procured to supply deliberately. Extensions do not solve that. They move it.

The big battery is a protection scheme first, and a battery second

The Waratah Super Battery at Munmorah on the Central Coast is routinely described as storage, which understates what it is contracted to do. The environment department's monitor assumes the "Waratah Super Battery is assumed to operate as a merchant battery in the wholesale electricity market for every year in the forecast except from 2027-28 to 2029-30 when it is assumed to operate as a System Integrity Protection Scheme (SIPS)" (NSW DCCEEW, 2025). In that mode it is not primarily arbitraging energy at all: it holds standby power ready to inject within seconds of a transmission line outage, which allows the existing lines into the Hunter, Sydney and the Illawarra to be run at higher capacity than they safely could otherwise. It is, in effect, a substitute for transmission the state has not built yet — bought, sensibly, because it could be delivered faster.

That matters for how such assets are judged. An asset contracted as a protection scheme for three years and a merchant battery thereafter cannot be assessed on wholesale market revenue alone, and the public should be told which role it is being paid for in which year.

Benefit-sharing: the state already has a published rate

The energy transition will be built in the regions, and the regions must be better off for hosting it. New South Wales does not have to invent the mechanism — it has one, and it is worth naming rather than speaking in generalities. Under EnergyCo's Strategic Benefit Payments Scheme, eligible private landholders hosting transmission infrastructure receive the equivalent of $200,000 in 2022 dollars per kilometre of eligible infrastructure hosted, paid in annual instalments over 20 years and indexed annually to the Consumer Price Index, with the first payment made within 90 days after the infrastructure is energised and subsequent payments by 30 September each year (EnergyCo, 2025b). Critically, the scheme is additional to, and does not reduce, compensation payable for easements under the Land Acquisition (Just Terms Compensation) Act 1991 (EnergyCo, 2025b).

Community benefit-sharing is also already real money. EnergyCo announced in April 2025 that $60 million had been allocated to 54 local projects in the first round of the Central-West Orana Community and Employment Benefit Program — including $11.25 million to each of the four host councils — drawn from an initial $128 million program, funding affordable housing, water infrastructure and a renewable energy careers training centre across Dubbo, Mudgee, Wellington and Dunedoo (EnergyCo, 2025a).

And here is the part usually left out. Upfront money for that program comes from the Transmission Acceleration Fund; after 2028 the program is to be funded through access fees paid by generators connecting to the REZ network, over a period EnergyCo describes as the next 33 years (EnergyCo, 2025a). Access fees paid by generators are recovered, in the end, through the price of the electricity they sell. That does not make benefit-sharing wrong — we support it, and we think it is the price of building the transition decently. It makes it a bill-payer question, and we would rather defend it openly on those terms than let it be presented as free money from a fund.

A correction worth making about offshore wind

Two different instruments off the Illawarra coast are regularly confused, and the confusion is not harmless. The Commonwealth-declared Illawarra offshore wind zone is a federal instrument; the Illawarra Renewable Energy Zone is a separate state declaration, and nothing that has happened offshore changes the state's five declared REZs. BlueFloat Energy, the only applicant for a feasibility licence in the Commonwealth zone, paused its assessment in early 2025 and then withdrew. A joint statement by the federal members for Cunningham, Gilmore and Whitlam dated 23 January 2026 confirmed that no feasibility licences would be granted for generation projects in the Illawarra, as no application could be progressed to licence award, while "the declared offshore wind zone in the Illawarra remains in effect and could open for applications for feasibility licences again should there be competitive interest for development", with research and demonstration licences available in the meantime (Members for Cunningham, Gilmore and Whitlam, 2026). That is a statement by three members of parliament rather than a departmental decision document, and we treat it accordingly.

The lesson we draw is not that offshore wind has failed. It is that a declared zone with no proponent delivers nothing, and that state energy planning should not carry offshore capacity in its assumptions until a licence exists.

Conditions we would attach to the build

  • Genuine benefit-sharing — payments to landholders hosting transmission at the published Strategic Benefit Payments rate, indexed as designed and additional to easement compensation (EnergyCo, 2025b), and community benefit funds sized to the scale of the projects and controlled locally rather than administered from Sydney. Where those funds are ultimately paid for through access fees (EnergyCo, 2025a), say so.
  • Honest early engagement on transmission routes and project siting, with cumulative impacts on farmland and communities assessed openly rather than corridor by corridor. Central-West Orana is a live demonstration of what a construction decade does to a district; New England, still in planning (NSW DCCEEW, 2025), is the chance to do the engagement before the route is fixed rather than after.
  • Local jobs and apprenticeships written into REZ contracts, so the construction decade trains a regional clean-energy workforce rather than flying one in. EnergyCo's own forecast of about 1,850 construction jobs against about 930 ongoing operational jobs from 2034 (EnergyCo, 2026) is exactly why this matters: the construction peak passes, and what a region keeps is whoever was trained during it.
  • Firming and storage on evidence — batteries, pumped hydro and demand management assessed on cost and reliability, with the results published, and with system strength and inertia procured explicitly rather than hoped for (Australian Energy Market Operator, 2025c).
  • Demand-side assumptions tested in public — the state's own monitor assumes 900 MW of additional peak demand from data centres by 2033-34 (NSW DCCEEW, 2025). If large new loads are to be accommodated, the terms on which they connect, and whether they contribute to firming, should be a public decision rather than a modelling input.

The waste stream

Waste less, and waste better

Greater Sydney is running short of landfill capacity. The Environment Protection Authority states plainly that "Greater Sydney is running out of ways to safely manage 'residual' (red bin) waste and is predicted to run out of landfill capacity by 2030 or earlier" (NSW EPA, 2026b). That is not a problem you can landfill your way out of.

Return and Earn is the state's most successful environmental program, and it is about to get bigger

New South Wales has already proven the alternative works. In January 2026 the EPA announced that 15 billion containers had been returned through Return and Earn since the scheme launched in December 2017, with $1.5 billion paid out in refunds — the tally having risen from 14 billion to 15 billion in under six months, with around nine million containers returned per day over summer (NSW EPA, 2026a). More than $91.5 million in container refund donations and host fees has gone to charities and community groups since 2017 (NSW EPA, 2026a). Very few state programs can show participation numbers like that, and the reason is not mysterious: the incentive is immediate, legible and paid at the point of effort.

From mid-2027 the scheme is legislated to expand to accept wine and spirit bottles and larger drink containers. The EPA estimates this will divert about 27,000 tonnes of material from NSW landfills annually and make an additional 362 million containers a year eligible for the 10 cent refund (NSW EPA, 2026a). Those are estimates of the effect of a future expansion rather than measured outcomes, and we would want them reported against after the fact — because a scheme with this much credibility can afford to publish whether its own projections held.

FOGO has dates, and the deadline behind it is a landfill deadline

Food and garden organics collection is not an aspiration in New South Wales; it is legislated with dates attached. Parliament has legislated to mandate FOGO collection services for households by 1 July 2030, and for businesses and institutions in stages from 1 July 2026, with the largest waste generators first and thresholds staggered through to 2030; large supermarkets will additionally be required to record food donations across six categories (NSW EPA, 2026b). The rationale is the landfill wall described above, set against the state's commitment under the Waste and Sustainable Materials Strategy 2041 to halve the organic waste going to landfill by 2030. EPA analysis found that applying the household mandates statewide may divert almost 950,000 tonnes of FOGO waste each year from landfill (NSW EPA, 2026b) — a modelled figure, not an observed one.

The risk in a mandate with a date is that the date arrives before the capacity does. Councils need processing capacity, contamination management and kerbside education funded on the same timetable as the obligation, and the businesses captured from July 2026 need to know which threshold applies to them well before it does. We would keep the momentum practical: complete the FOGO rollout with real support for councils rather than an unfunded obligation, set recycled-content targets in government purchasing so collected materials have a market to go to, back resource-recovery and remanufacturing industries as a genuine regional jobs opportunity, and push product stewardship so the cost of dealing with packaging and e-waste sits with the producers who design it.

The through-line connecting Return and Earn and FOGO is worth naming, because it is the strongest argument in this section: New South Wales gets good waste outcomes when the obligation is clear, the date is fixed, and someone is paid for doing the right thing. It gets poor ones when material is collected and then has nowhere to go.

The heat

A cooler, greener Western Sydney

Western Sydney summers are already dangerous. Penrith recorded about 48.9 degrees in January 2020 — reported that day as among the hottest places on Earth — and heatwaves are consistently reported as Australia's deadliest natural hazard. Yet the suburbs growing fastest are often those with the least shade.

The state's own index shows how unevenly this falls

This is no longer an impression. The planning department's August 2025 data pack, drawing on the 2022 Heat Vulnerability Index for the Greater Sydney Region, gives the share of statistical area level 1 units in each local government area scoring 5, the highest heat vulnerability rating: Fairfield 71 per cent, Penrith 49 per cent, Liverpool 32 per cent, Cumberland 31 per cent, Blacktown 29 per cent, Canterbury-Bankstown 21 per cent and Campbelltown 19 per cent (NSW DPHI, 2025).

At the other end of the city the same index records Ku-ring-gai with 81 per cent of its SA1s at score 1, the lowest rating, and none at all at score 5; Woollahra, Mosman, Lane Cove, Hunters Hill and the Blue Mountains each record zero per cent at score 5 (NSW DPHI, 2025). In seven of Sydney's fastest-growing western and south-western councils, between a fifth and seven-tenths of neighbourhoods are rated most vulnerable. In five established councils, none are.

Two qualifications matter and we state them. The index combines exposure, sensitivity and adaptive capacity — it measures vulnerability, not temperature, and a score of 5 is not a thermometer reading. And the planning department itself notes that the LGA-level distribution is indicative only. Neither qualification disturbs the pattern, which is that heat vulnerability in Sydney maps almost exactly onto income, tree cover and housing age.

Canopy is moving, slowly, and in the right places

The same department records Greater Sydney tree canopy — vegetation over three metres — at 21.9 per cent in 2024–25, 21.7 per cent in 2022–23 and 21 per cent in 2019, with the greatest recent gains in western Sydney local government areas (NSW DPHI, 2025). That is genuine progress and it is happening where it is most needed, which is worth acknowledging rather than dismissing. It is also slow: 0.9 percentage points over roughly five years, against a canopy deficit in the western suburbs measured in decades of growth. A tree planted in a new release area in 2026 provides meaningful shade in the 2040s. This is precisely the kind of policy where delay is not neutral.

We would treat urban heat as core infrastructure policy rather than as landscaping: enforceable tree-canopy targets in new release areas and along streets, dark-roof restrictions and cool-building standards in growth precincts, water kept in the landscape, and shade at the places people actually wait — bus stops, school gates, playgrounds and car parks. The existing canopy programs for Greater Sydney point the right way and are measurably working; the test is pace, and pace must be measured and published, suburb by suburb, against the vulnerability index the Government already publishes.

The record

Key Directions for Debate

  1. Buy abatement by the tonne, not by the technology

Require every New South Wales climate and energy program to publish an estimated cost per tonne of CO2-e abated, on a consistent method, updated as technology costs move — and use that number, rather than a technology's popularity, to decide what is funded, expanded or wound up. The spread is not marginal. The NSW Productivity and Equality Commission reports that each intervention carries "a different, but measurable, cost of abatement per tonne of CO2-e, even though these costs may not be explicitly set out": tradeable certificates under state energy efficiency schemes carry an estimated implicit carbon price of $41 per tonne of CO2-e, while the original NSW Electric Vehicle Strategy implied a carbon price of between $271 and $4,914 per tonne of CO2-e (NSW Productivity and Equality Commission, 2024). Two of that Commission's own principles for navigating a world without a broad-based carbon price belong in program design: that interventions "should be technologically agnostic and competitively neutral", and that policy overlaps "should be avoided, except where policies are clearly complementary" (NSW Productivity and Equality Commission, 2024). Much of the machinery already exists — the NSW Government Guide to Cost-Benefit Analysis requires a cost-benefit analysis for every capital, recurrent and ICT proposal with an estimated total cost higher than $10 million (NSW Productivity and Equality Commission, 2024) — so what is missing is publication, and the willingness to act on an unflattering answer. Nationally, the Productivity Commission puts the same test first: "Focus on reducing emissions, not how they are reduced." Modelling prepared for its December 2025 inquiry found the National Electricity Market could reach the renewable penetration implied by current state targets at 4 per cent less total cost over the period 2026 to 2040 by removing targets for specific technologies — around $4 billion — and at 8 per cent less by removing technology- and state-specific targets together (Productivity Commission, 2025). This is in genuine tension with section 3, and we should say so rather than dress it up: the Renewable Energy Zones are a state-directed, technology-specific build, and this direction is an argument for testing them honestly, not for abandoning them. Our answer is that the build should be able to show its work — published costs, published benefits, and the "off-ramps" the Productivity Commission recommends for technology-specific support, so that a program which stops earning its place can be ended without a fight.

  1. Say out loud what reliability costs, and never charge households twice for the same megawatt

For every firming, storage or capacity intervention the state makes, publish which reliability obligation it is meeting, what it is expected to cost, and who ultimately pays — and require an explicit finding that New South Wales is not buying capacity a Commonwealth scheme has already underwritten. The state currently sits beneath three stacked reliability commitments: the National Electricity Rules standard requiring that at least 99.998 per cent of forecast consumer demand is met each year, a stricter interim reliability measure of 0.0006 per cent of expected unserved energy running to 30 June 2028, and the NSW Energy Security Target legislated in 2020 (NSW Productivity and Equality Commission, 2024). None of it is free. "Very high reliability comes with additional costs", the Commission notes, and the generation, firming and network capacity needed to meet a standard with confidence "carries capital and operating costs, which are ultimately borne by customers" — so "the higher the desired level of reliability, the higher the costs for electricity faced by consumers" (NSW Productivity and Equality Commission, 2024). The duplication risk is not hypothetical: the NSW firming tender that awarded 1,075 MW of firm capacity in September 2023 was "later supported by the Commonwealth as the first phase of its new Capacity Investment Scheme", and the same Commission warns of "the costs of complying with multiple state and Commonwealth policies, particularly for maintaining very high system reliability" (NSW Productivity and Equality Commission, 2024). The Productivity Commission is blunter: "An activity should not face multiple incentives to reduce emissions. Overlapping incentives create the risk that emitters will choose options because they are strongly incentivised to do so, even if they are more costly than necessary for consumers or taxpayers" — and where a scheme does back a higher-cost technology, its view is that "any additional costs should be funded through government budgets rather than by consumers" (Productivity Commission, 2025). Two qualifications belong in the same breath. This is an argument about transparency, not about running the system thinner: cheap unreliability is no saving, and the task is real — AEMO's 2025 Electricity Statement of Opportunities reports that the reliability gaps once forecast for New South Wales after Eraring's advised retirement in 2027-28 are no longer forecast, but that "system security and operability challenges remain" (Australian Energy Market Operator, 2025a). AEMO's October 2025 update to that report, issued after Queensland's Gladstone Power Station was advised for potential closure in 2029, moves the state's exposure earlier: on committed and anticipated developments alone, New South Wales needs 245 MW of additional firm capacity to hold the 0.002 per cent reliability standard in 2031-32, rising to 5,460 MW by 2033-34 (Australian Energy Market Operator, 2025b). And it has to be weighed against the benefit-sharing commitments in section 3, which we stand by: those payments are a real cost that lands somewhere, in bills or in the budget, and we would rather defend them openly as the price of building the transition decently than pretend they cost nothing.

  1. Commence the avoid-and-minimise provisions, and report the offsets scheme against numbers rather than adjectives

The Biodiversity Conservation Amendment (Biodiversity Offsets Scheme) Act 2024 commenced on 7 March 2025 with one conspicuous exception: the provisions on assessing genuine measures to avoid and minimise biodiversity impacts remain uncommenced (NSW DCCEEW, 2026b). We would have those provisions commenced with a published date, and we would have the reformed scheme report annually against the specific failures the Auditor-General measured — the proportion of species credit demand actually met, the proportion of credits ever traded, the proportion of stewardship sites under active management, and the proportion of developer obligations transferred to the Biodiversity Conservation Trust that have been acquitted (Audit Office of New South Wales, 2022). The point of naming those four metrics is that they were measurable in 2022 and can therefore be measured again. A "net positive" strategy that cannot be checked against the numbers which exposed the old scheme is a rebrand. We also acknowledge what the Government declined: it ruled out giving the Biodiversity Conservation Act primacy over planning law and ruled out mapping no-go zones (NSW DCCEEW, 2026b). Those are legitimate choices to argue about — but they mean the avoid-and-minimise test is carrying more weight than it was originally designed to carry, and it is the part that is not switched on.

  1. Publish the Great Koala National Park's critical path, including the carbon condition

We support the park. Supporting something is not the same as assuming it will happen. The Government's own release makes final creation of the park dependent on the successful registration of a carbon project under the Improved Native Forest Management Method, then still moving through Commonwealth assessment, and reservation itself requires a Bill under the National Parks and Wildlife Act 1974 (NSW Government, 2025). We would have the Government publish, and keep updated, the status of the carbon project registration, the timing of the reservation Bill, and what happens to the harvesting moratorium if the carbon project is not registered. We would also have the $6 million in community and small business support reported against the roughly 300 affected jobs and the 6 of more than 25 regional mills involved (NSW Government, 2025), because a transition package is judged on whether people landed somewhere, not on whether it was announced. And we would fund the counting: the 2020 committee found the then-standing estimate of 36,000 koalas "outdated and unreliable" (Legislative Council Portfolio Committee No. 7, 2020), and a park whose success cannot be measured is a park whose success can be asserted indefinitely.

  1. Fund coastal management programs to completion, and finish the vulnerability mapping

Seven years after the coastal management framework took effect, only 17 coastal management programs covering 16 of 55 coastal councils had been certified as at April 2025, against the department's own target of 20 by June 2025 (Audit Office of New South Wales, 2025). We would treat that as a resourcing and mapping failure rather than a council failure, because that is what the Auditor-General found: incomplete mapping of the coastal vulnerability area, insufficient funding identified in the Coastal and Estuary Grants Program, and audited councils unable to integrate coastal actions into their planning because they could not rely on long-term funding (Audit Office of New South Wales, 2025). Three things follow. Complete the coastal vulnerability area mapping and publish it, because a hazard that is not mapped cannot be disclosed to a buyer or planned around by a council. Put the Coastal and Estuary Grants Program on a multi-year footing, so that a twenty-year coastal program is not funded a year at a time. And publish the true cost: the department's own estimate of around $341.6 million for the actions in the 17 certified programs (Audit Office of New South Wales, 2025) is a partial figure covering under a third of coastal councils, and the state should say what the whole coast costs before an east coast low says it instead.

  1. Report the energy transition against the closure calendar, in public, twice a year

New South Wales already publishes a monitor that names the years the gaps fall in — a 274 MW breach in 2027-28 on Eraring's assumed closure, sufficiency from 2029-30 to 2032-33 once HumeLink and the Hunter Transmission Project are commissioned, then a much larger breach from 2033-34 continuing into 2034-35 as Bayswater and Vales Point close (NSW DCCEEW, 2025). What it does not do is track delivery against those dates in a form a member of the public can follow. We would have a single published ledger, updated twice a year, setting out for each replacement project its approval status, its financial close, its expected energisation date and how far that date has moved — for Central-West Orana against its 2028 energisation and 2030 completion (EnergyCo, 2026), for New England against whatever approval date it actually achieves rather than the indicative one, and for system strength and inertia procurement against AEMO's finding that the fix is scheduled about a year after Eraring's originally announced exit (Australian Energy Market Operator, 2025c). The Eraring extension to 30 April 2029 (Origin Energy, 2026) bought the state roughly twenty months. A published ledger is how the public finds out whether they were used.

  1. Close the clearing accountability gap before arguing about the clearing numbers

Sixty per cent of the native vegetation clearing detected in New South Wales in 2024 — 49,146 hectares — could not be matched to an approval or exemption (NSW DCCEEW, 2026a). That is not a finding of illegality and should never be reported as one. It is a finding that the state's clearing regulation cannot presently explain most of what its own satellites see. We would have the department publish an annual reconciliation of unallocated clearing by category and cause, shorten the roughly 18-month reporting lag, and extend the same monitoring rigour to non-woody vegetation, where clearing is running 13 per cent above the 2018–2024 average even as woody clearing runs 19 per cent below it (NSW DCCEEW, 2026a). The honest version of this argument helps our case rather than hurting it: woody clearing is genuinely declining, and saying so is what earns the right to be believed about the grasslands.

A liveable environment and reliable clean energy are not competing goals. Done honestly, they are the same project: a state that protects what it cannot replace and builds what it genuinely needs.

The record

References

Audit Office of New South Wales. (2022). Effectiveness of the Biodiversity Offsets Scheme. Performance audit, tabled 30 August 2022. Sydney: Auditor-General for New South Wales. https://www.audit.nsw.gov.au

Audit Office of New South Wales. (2025). Coastal management. Performance audit, tabled 10 September 2025. Sydney: Auditor-General for New South Wales. https://www.audit.nsw.gov.au

Australian Energy Market Operator. (2025a). 2025 Electricity Statement of Opportunities: A 10-year outlook of investment requirements to maintain reliability in the National Electricity Market. August 2025. Melbourne: AEMO. https://www.aemo.com.au/-/media/files/electricity/nem/planning_and_forecasting/nem_esoo/2025/2025-electricity-statement-of-opportunities.pdf

Australian Energy Market Operator. (2025b). October 2025 Update to the 2025 Electricity Statement of Opportunities: An updated report for the National Electricity Market. October 2025. Melbourne: AEMO. https://www.aemo.com.au/-/media/files/electricity/nem/planning_and_forecasting/nem_esoo/2025/october-2025-update-to-the-2025-esoo.pdf

Australian Energy Market Operator. (2025c). 2025 Transition Plan for System Security. December 2025. Melbourne: AEMO. https://www.aemo.com.au

EnergyCo (NSW Government). (2025a). $60 million in community benefits start flowing to the Central-West Orana Renewable Energy Zone. 11 April 2025. Sydney: EnergyCo. https://www.energyco.nsw.gov.au

EnergyCo (NSW Government). (2025b). Strategic Benefit Payments Scheme: policy paper and scheme guidance. Sydney: EnergyCo. https://www.energyco.nsw.gov.au

EnergyCo (NSW Government). (2026). Central-West Orana Renewable Energy Zone. Project page. Sydney: EnergyCo. https://www.energyco.nsw.gov.au

Legislative Council Portfolio Committee No. 7 – Planning and Environment. (2020). Koala populations and habitat in New South Wales. Report 3, June 2020. Sydney: Parliament of New South Wales. https://www.parliament.nsw.gov.au

Members for Cunningham, Gilmore and Whitlam. (2026). Joint Statement on the Illawarra Offshore Wind Zone. 23 January 2026. Canberra.

NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW). (2025). Energy Security Target Monitor report 2025. December 2025, ISSN 3083-3809. Sydney: NSW Government. https://www.energy.nsw.gov.au

NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW). (2026a). 2024 NSW vegetation clearing report (Statewide Landcover and Trees Study). Sydney: NSW Government. https://www.environment.nsw.gov.au

NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW). (2026b). Biodiversity Offsets Scheme reforms. Environment and Heritage. Sydney: NSW Government. https://www.environment.nsw.gov.au

NSW Department of Planning and Environment. (2023). Independent Review of the Biodiversity Conservation Act 2016: Final Report (Dr Ken Henry AC). Tabled 24 August 2023. Sydney: NSW Government. https://www.nsw.gov.au

NSW Department of Planning, Housing and Infrastructure (NSW DPHI). (2025). Heat vulnerability and urban tree canopy cover levels for Greater Sydney councils in the Greening our City program; and Urban heat and canopy data. August 2025. Sydney: NSW Government. https://www.planning.nsw.gov.au

NSW Environment Protection Authority (NSW EPA). (2025). Hawkesbury-Nepean Nutrient Management Framework: Regulating nutrients from sewage treatment plants. July 2025. Sydney: NSW EPA. https://www.epa.nsw.gov.au

NSW Environment Protection Authority (NSW EPA). (2026a). New Year Cheer: 15 billion containers recycled in Return and Earn milestone. 5 January 2026. Sydney: NSW EPA. https://www.epa.nsw.gov.au

NSW Environment Protection Authority (NSW EPA). (2026b). FOGO mandates and rollout. Sydney: NSW EPA. https://www.epa.nsw.gov.au

NSW Government. (2025). The Great Koala National Park. Ministerial release, 7 September 2025. Sydney: NSW Government. https://www.nsw.gov.au

NSW Productivity and Equality Commission. (2024). Achieving net zero, Paper 1: Ensuring a cost-effective transition. November 2024. Sydney: NSW Productivity and Equality Commission. https://www.nsw.gov.au/departments-and-agencies/nsw-productivity-and-equality-commission/document-library/ensuring-a-cost-effective-transition

Origin Energy. (2026). Origin extends Eraring Power Station operations to 2029. Media release, 20 January 2026. Sydney: Origin Energy Limited. https://www.originenergy.com.au

Productivity Commission. (2025). Investing in cheaper, cleaner energy and the net zero transformation. Inquiry report no. 113, 10 December 2025. Canberra: Productivity Commission. https://www.pc.gov.au/inquiries-and-research/net-zero/report

Protect what we cannot replace.

This platform was researched, argued and written by members: keep the koalas, keep the beach, keep the lights on — and make the regions that host the build better off for it.