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NSW EPA Plans Tougher Climate Rules — What It Means for Local Businesses and Industries

  • Evelyn Moore
  • Aug 15
  • 2 min read

The NSW Environment Protection Authority (EPA) has announced big changes to how certain facilities will need to report and cut their greenhouse gas (GHG) emissions. These proposed rules are now open for public feedback until 7 October 2025.


If approved, the changes could impact hundreds of sites across NSW — particularly those with high emissions — and may necessitate significant planning, investment, and action to meet the new target.


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Who Will These Changes Affect?

The new rules will apply to facilities that:

  • Have an Environment Protection Licence (EPL), and

  • Release more than 25,000 tonnes of CO₂-e each year from their operations (this includes both direct emissions and emissions from energy use).


These facilities will need to:

  1. Report their emissions to the EPA every year.

  2. Create and publish a Climate Change Mitigation and Adaptation Plan (CCMAP).


What Is a CCMAP?

A CCMAP is a detailed plan that:

  • Sets clear emission reduction targets, and

  • Explains exactly how the facility will achieve those targets.

The EPA expects businesses to cut as much as possible on-site first before using offsets to make up the difference.

NSW’s Targets Are Tougher

NSW has set stricter emission reduction goals than the Federal Government. That means the EPA will expect operators to go further than what’s required under the Federal Safeguard Mechanism.

Right now, some sites already report their emissions under the National Greenhouse and Energy Reporting (NGER) Scheme. But these new rules will also apply to:

  • Around 40–50 facilities that currently don’t report under NGER.

  • About 150 facilities that aren’t covered by the Safeguard Mechanism.

No Hard Emission Caps… Yet

At first, the EPA won’t set strict “caps” on how much a facility can emit. But they’ve made it clear this is the likely next step — once they have enough data from CCMAPs and have set greenhouse gas limits for each sector.

Also important: any emissions data you submit could be used later to set legally binding limits.

Extra Rules for Specific Industries

The EPA will also create sector-specific guidelines — starting as recommendations, then becoming mandatory over time. The first guide focuses on coal mines and is already open for feedback.

Tight Deadlines to Prepare

If the rules go ahead, here’s when key reports will be due:

  • By 28 February 2026

    Safeguard Mechanism sites and coal mines that emit more than 25,000 tonnes CO₂-e a year must submit their first Annual Climate Change Emissions Report.

  • By 31 October 2026

    Those same facilities must publish their first CCMAP.

  • By 31 October 2027

    All other facilities over the 25,000-tonne threshold must publish their first CCMAP.

Why This Matters

If your business falls into this category, the NSW EPA could soon become your main climate regulator — with rules that are more ambitious, faster, and stricter than federal requirements.

Public consultation is open now, so this is the time to understand the changes, assess how they’ll affect your operations, and have your say before 7 October 2025.

 

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