Climate change requirements for licensees
Climate change requirements will be phased in from 2027 for holders of environment protection licences.
The NSW Environment Protection Authority (EPA) has a critical role in protecting the environment from the threat of climate change and in delivering actions that will support NSW to achieve net zero emissions by 2050.
Under our Climate Change Action Plan we are starting to treat greenhouse gas emissions like other pollutants.
When selecting mitigation measures, licensees must consider the mitigation hierarchy and any EPA greenhouse gas mitigation guidance. As with all sectors, under the mitigation hierarchy, coal mines must make genuine efforts to first avoid and then reduce emissions before offsetting residual emissions.
Requirements apply from 2027
New Climate Change Licensee Requirements (PDF 893KB) will be phased in for environment protection licensees from 2027. They apply to facilities that hold environment protection licences and emit over 25,000 tonnes of carbon dioxide equivalent (CO2-e) emissions per year.
These facilities represent only 10% of the EPA’s licence holders but emit about 50% of the state’s greenhouse gas emissions. They are typically large industrial facilities such as coal mines, manufacturing, large intensive agricultural facilities (e.g. feedlots and dairies), and large landfills.
Activities like housing developments, small food and beverage facilities do not need to meet these requirements.
Emissions reporting and mitigation plans
Emissions Reporting and Climate Change Mitigation and Adaptation Plans (CCMAP) (PDF 1.4MB) requirements apply to a licensed premises that emit 25,000 tonnes or more of CO2-e scope 1 and 2 greenhouse gas emissions per year, in any year in the previous three financial years.
Licensees will be required to provide an annual emissions report, including emissions by scope, energy consumed and produced, and future emissions forecasts.
- First reports are due 31 March 2027.
Licensees will be required to develop a CCMAP, initially focusing on mitigation. The CCMAP will be required to be published on the licensee's corporate website.
The CCMAP should outline what actions will be undertaken to reduce emissions at their premises and in what timeframe.
- CCMAPs are due for publication on the licensee's website by 31 March 2027 or 31 August 2027, depending on licensee type.
For information on Climate Change requirements that apply to Agriculture licensees
For information on Climate Change requirements that apply to Landfill licensees
Greenhouse gas mitigation guide for coal mines
The Greenhouse Gas Mitigation Guide for NSW Coal Mines (PDF 1.4MB) (Coal Guide) provides state-specific guidance on opportunities for NSW coal mines to reduce greenhouse gas emissions.
It is the first in a series of EPA mitigation guides. The coal mining sector was prioritised because it emits 30% of NSW’s methane emissions and is the largest source of fossil methane emissions in NSW.
The Coal Guide sets out the greenhouse gas mitigation measures that operators of existing coal mines and proponents of new coal mining projects and modifications must consider as part of their climate change mitigation and adaptation plans and planning applications.
It prioritises onsite abatement for fugitive methane, including requirements for drainage and flaring, sealing old workings and the abatement of ventilation air methane.
Consultation informed the requirements
We consulted in 2025 on the proposed climate change licensee requirements, inviting submissions via the ‘Have Your Say’ consultation portal, email and post. Read the consultation summary report on our Have Your Say page.