Net Zero Plan Stage 1: 2020–2030
The Net Zero Plan requires NSW State of the Environment to report on the plan’s implementation and progress towards meeting its net zero emissions goal.
Summary
The NSW Government has an objective to achieve a 50% reduction in emissions on 2005 levels by 2030 and to reach net zero emissions by 2050. The Net Zero Plan Stage 1: 2020–2030 is the foundation for NSW action on climate change. Under current policy settings, NSW emissions in 2030 are projected to be 47–52% lower than 2005 levels. This will put NSW on the path to achieving net zero emissions with further action and investment in decarbonisation initiatives needed to reach net zero emissions by 2050.
The Net Zero Plan highlights the NSW Government’s commitment to maintaining a strong economy, improving the quality of life for the people of NSW and protecting the environment. Initiatives under the plan will reduce emissions and also grow the economy and create jobs over the next decade.
NSW greenhouse gas emissions in 2018–19 were inventoried to be 136.6 million tonnes carbon dioxide-equivalent (CO2-e) or 16.9 tonnes CO2-e per capita. Emissions peaked in 2007 and in 2019 were 17% lower than in 2005.
Projections show that taking a business-as-usual approach will reduce emissions to 30% below 2005 levels by 2030. NSW Government policies under the Net Zero Plan, including the NSW Electricity Infrastructure Roadmap, will deliver further emission reductions. Total NSW emissions are projected to fall to 78.9–87.6 Mt CO2-e by 2030, which is 47–52% below 2005 levels. Overall output of carbon dioxide in the atmosphere will continue to rise under both scenarios, contributing to greater concentrations of carbon dioxide and amplifying the effects of climate change. However under the net zero plan CO2-e emissions produced each year in NSW are projected to be 47–52% below 2005 levels, reducing the annual emissions rate to 78.9–87.6 Mt CO2-e by 2030.
Stage 1 of the Net Zero Plan will put NSW on the path to achieving net zero emissions by 2050 through investment in new technologies, including energy systems and low emission ways of living. However projections show that further effort and investment will be required in the decades beyond 2030 to achieve the net zero emissions objective.
Related topics: | |
Context
Released in March 2020, the Net Zero Plan Stage 1: 2020–2030 () is the foundation for NSW Government action on climate change over the next decade. It sets the state up to achieve its objective of halving emissions on 2005 levels by 2030 and its long-term objective of reaching net zero emissions by 2050.
The plan, which aims to strengthen the prosperity and quality of life for the people of NSW, has four key priorities.
Priority 1: Drive the uptake of proven emissions reduction technologies
Priority 2: Empower consumers and businesses to make sustainable choices
Priority 3: Invest in the next wave of emissions reduction innovation
Priority 4: Ensure the NSW Government leads by example
These priorities support initiatives that will reduce emissions across the areas of electricity and energy efficiency, transport, primary industries and land, clean technology and industry innovation, buildings and planning systems, organic waste and sustainable finance.
The Net Zero Plan delivers on the objectives of the NSW Climate Change Policy Framework (), which sets out the policy directions for action to mitigate and adapt to climate change. This includes the long-term objectives of NSW being more resilient to a changing climate and achieving net zero emissions by 2050.
Policies under the plan are also being delivered as part of the NSW Electricity Infrastructure Roadmap, NSW Electric Vehicle Strategy and NSW Waste and Sustainable Materials Strategy 2041. For more about these and other plans and strategies, go to the , , and topics.
NSW emission projections
In 2018–19, NSW net greenhouse gas emissions were inventoried to be 136.6 megatonnes carbon dioxide-equivalent (CO2-e), representing 26% of Australia’s total emissions. Per capita NSW emissions, including land use, land-use change and forestry, stood at 16.9 tonnes CO2-e, below the national average of 20.9 tonnes. Emissions peaked in 2007 and in 2019 were 17% lower than 2005 levels.
In 2018–19, stationary energy (mostly from electricity generation) was the largest source of emissions in NSW at 49% of the total, followed by emissions from transport (20%), agriculture (12%), industrial processes and product use (9%) and fugitives from coal and gas (9%) – see Figure 23.1. The land use, land-use change and forestry sector is currently a carbon ‘sink’ as it stores more carbon than it emits and thus reduces the state’s emissions by 3%.
Four of NSW’s five coal-fired power stations that currently provide around three-quarters of the state’s energy supply are scheduled to close by 2035. This provides enormous potential to decarbonise the electricity sector.
Figure 23.1: Net NSW greenhouse gas emissions as inventoried (2005–2019) and projected with Net Zero Plan Stage 1 policies implemented (2020–2030)
Notes:
Non-CO2 emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report.
Emissions projections were prepared using the latest activity data and assumptions based on the advice of NSW and Australian government agencies. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur. It is dissimilar to a forecast, which predicts actual future events and changes. Projections are given as a range – for simplicity a central estimate of emission projections is shown for 2020–2030 and discussed in the related text.
References to a particular year refer to financial year, i.e. the 12 months ending 30 June of that year
Projections show that, if a business-as-usual approach is followed, NSW emissions will fall to 30% below 2005 levels by 2030. This is because industry and the electricity sectors are already decarbonising by moving to more reliable and affordable sources of energy. Australia’s three biggest trading partners, China, Japan and South Korea, have all committed to net zero emissions targets. It is important that NSW manages the risk this poses to our economy and takes advantages of new opportunities.
NSW Government policies under the Net Zero Plan , including the NSW Electricity Infrastructure Roadmap , are projected to deliver further emission reductions taking the total to 78.9–87.6 Mt CO2-e in 2030, which is 47–52% lower than in 2005.
Further information on the status of emissions in NSW and projected emissions to 2030 taking current policies in the plan into account is available in the topic.
Impact of the Net Zero Plan
Emissions reduction
Upon its launch, the Net Zero Plan Stage 1: 2020–2030 () was forecast to reduce total NSW emissions by 35.8 Mt CO2-e by 2030, 35% below 2005 levels. However, since the plan’s publication, further modelling and analysis on trends in NSW emissions and the likely impact of the plan have revised projections significantly.
By 2019, total NSW emissions had already fallen by 28.4 Mt CO2-e or 17% below 2005 levels (see Figure 23.2). ‘Base case’ trends in NSW emissions, which exclude the impact of the plan, are now projected to result in a further reduction of 20.3 Mt CO2-e reduction in annual emissions by 2030 (Figure 23.2).
Figure 23.2: Projected reductions in annual NSW emissions in 2030 under base case and Net Zero Plan scenarios
Notes:
Emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report and are given for financial year 2030.Emissions projections were prepared using the latest activity data and assumptions based on the advice of NSW and Australian government agencies. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur.
The graph depicts a central estimate of the emission reductions due to the Net Zero Plan Stage 1, with lower and upper emission reduction projections referenced in the text on the graph.
Factors contributing to the downward revision of the NSW emissions trajectory include:
- lower electricity generation emissions due to a higher than expected increase in rooftop solar and updated projections by the Australian Energy Market Operator indicating more rapid growth in the renewables share of the National Electricity Market ()
- lower agricultural emissions in the near term due to the impact of the recent drought on livestock numbers and crop productivity (, )
- upgraded base case rates for electric vehicle uptake and downgraded coal production outlooks in response to global technology and energy market trends ().
Initiatives in the Net Zero Plan are projected to deliver further reductions in annual NSW emissions of between 28.6 and 37.3 Mt CO2-e by 2030. Accounting for base case trends and NSW Government initiatives under the plan, total annual NSW emissions are projected to fall to 78.9–87.6 Mt CO2-e in 2030, which is 47–52% lower than 2005 levels (Figure 23.2).
Forecast emission reductions under the plan include abatement from a range of initiatives including the NSW Electricity Infrastructure Roadmap, the Net Zero Industry and Innovation Program, NSW Electric Vehicle Strategy, and policies under the NSW Waste and Sustainable Materials Strategy 2041.
The projected emission reductions under Net Zero Plan initiatives do not include the impact of some policies still in development. For example, the estimate includes the impact of developing hydrogen hubs under the NSW Net Zero Industry and Innovation Program but does not account for the full impact of the NSW Hydrogen Strategy published in October 2021 or the NSW Renewable Gas Certification Scheme announced in June 2021. Both were still under development at the time of the modelling and analysis.
Figure 23.3: 2019 and 2021 base case projections for NSW emissions (that is, without the Net Zero Plan)
Notes:
Emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report and are given for financial years.
Emissions projections were prepared using the latest activity data, assumptions and advice at the time of their derivation. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur. The graph depicts NSW emissions as inventoried and published within the National Greenhouse Accounts (2005--2019) and base case projections developed by the NSW Department of Planning, Industry and Environment in 2019 and 2021.
Stage 1 of the Net Zero Plan will put NSW on the path to net zero emissions by 2050 through investment in proven and new emissions reduction technologies, energy systems and low emission ways of living (Figure 23.4). A large proportion of emission reductions this decade will come from reducing emissions associated with stationary energy.
Annual emission reductions to be delivered by the plan are projected to increase over the next decade as initiatives are implemented:
- coal-fired power stations close and renewable energy generation ramps up
- the share of electric vehicles on the road increases
- carbon markets expand, supporting greater carbon sequestration by the land sector
- technologies for abating agricultural, industrial and mining emissions mature
- more organic waste is diverted from landfill
- a growing number of households and businesses reduce their electricity and gas use under the expanded Energy Security Safeguard
- more consumers and businesses are empowered to make sustainable choices.
Figure 23.4: Projected reductions in NSW emissions due to NSW Government action between 2021 and 2030
Notes:
Emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report and are given for financial years.
Emissions projections are prepared using the latest activity data and assumptions based on the advice of NSW and Australian government agencies. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur. The graph depicts base case and current policy projections to 2030 given emission reductions to be delivered by the Net Zero Plan Stage 1, including central estimates and upper and lower bound projections of the emission reductions.
Emissions reduction beyond 2030
With the initiatives in Stage 1 of the Net Zero Plan implemented and emissions at 47–52% below 2005 levels, reductions will need to continue beyond 2030. Projections show that further effort and investment will be required in the following decades to achieve the reductions necessary to meet the net zero objective by 2050 (see Figure 23.5).
Projections indicate that action beyond current policies will be needed to address emissions from most sectors, including heavy duty vehicles, agriculture, stationary energy, industry, mining, aviation and land clearing (see Figure 23.6). More support may also be required to bolster carbon sequestration and support the expansion of premium carbon markets.
The International Energy Agency notes that, while technologies on the market today can offer immediate emission reductions, almost half the reductions needed to meet a global goal of net zero by 2050 will need to come from technologies that are currently at the demonstration or prototype phase (). This means that major innovation efforts will be required this decade to develop new technologies and bring them to market. Stages 2 and 3 of the Net Zero Plan will be developed ahead of 2030 and 2040 to address this challenge.
Figure 23.5: Projected NSW emissions to 2050 under base case and current policy scenarios and the path ahead to net zero emissions by 2050
Notes:
Emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report and are given for financial years.
Emissions projections are prepared using the latest activity data and assumptions based on the advice of NSW and Australian government agencies. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur. The graph depicts base case and current policy projections to 2050 given emission reductions to be delivered by the Net Zero Plan Stage 1, including central estimates and upper and lower bound projections of the emission reductions.
Figure 23.6: Projected NSW emissions by sector with current policies implemented
Notes:
LULUCF = Land use, land-use change and forestry
Emissions are expressed as CO2 equivalents using 100-year global warming potential values from the IPCC Fifth Assessment Report and are given for financial years.
Emissions projections are prepared using the latest activity data and assumptions based on the advice of NSW and Australian government agencies. The projections are modelled to indicate what NSW future emissions could be if the assumptions underpinning the projection occur. The graph depicts current policy projections taking into account central estimates of the emission reductions projected to be delivered by the Net Zero Plan Stage 1.
A report by the Office of the NSW Chief Scientist and Engineer (OCSE) – Decarbonisation Innovation Study () – details economic opportunities associated with decarbonisation and climate adaptation across all sectors of the NSW economy, including services, electricity, industry, the built environment, land and transport. OCSE will update this report every two years to inform future policy and program design.
Economic impacts
Apart from helping to ameliorate the impacts of climate change by contributing to global reduction in emissions, current NSW efforts are expected to bring significant economic benefits to the state. These will be in the form of short- and long-term job creation as the result of increased economic activity. Likely benefits will not be confined to metropolitan areas, as significant investment is forecast in the regions. For example, planned Renewable Energy Zones, hydrogen hubs and land sector offset projects will primarily occur within regional NSW.
The following metrics will be reported on to determine the economic impact of the Net Zero Plan:
- $ per tonne of CO2-e reduced
- jobs created in metropolitan and regional NSW
- government investment in metropolitan and regional NSW
- non-government investment in metropolitan and regional NSW
- increased economic activity in metropolitan and regional NSW.
Other environmental impacts
Initiatives under the Net Zero Plan will have environmental benefits including improvements in air quality, biodiversity and soil health. The NSW Government will develop metrics to measure and evaluate the environmental impacts of these initiatives
Air quality
Air quality is determined by the types and amounts of pollutants emitted into the atmosphere. The main sources of human-made pollutants come from industry, motor vehicles, other transport and domestic wood smoke. Climate change also impacts air quality, with extreme climate-related events, such as bushfires and dust storms, worsening air pollution across large areas of the state.
Air pollution is known to shorten the lives of people in NSW. It has been estimated () that 5,900 years of life are lost each year due to long-term exposure to fine particles in the NSW Greater Metropolitan Region (GMR). This equates to a mortality effect equivalent to 420 premature deaths. Air pollution from fine particles is estimated to result in $3.3 billion in health costs each year in the GMR. Read more about the health impacts of air pollution in the topic.
The Net Zero Plan will deliver improvements in air quality by supporting the transition to cleaner energy, industry and transport. This in turn will reduce the associated health costs, hospitalisations and deaths attributable to poor air quality.
As NSW transitions to net zero emissions, further work will develop measures to track the associated air quality and health benefits of reducing human exposure to fine particles and other air pollutants.
Electric vehicles, cleaner air and health benefits
Reducing tailpipe emissions from vehicles through initiatives outlined in the NSW Electric Vehicle Strategy will deliver significant health benefits for NSW. All vehicles contribute to air pollution through road, brake and tyre wear. The transition to battery and fuel cell electric vehicles will reduce the health impacts of air pollution with an end to tailpipe emissions of particle and gaseous air pollutants from petrol and diesel vehicles.
Statistics show that in 2013 motor vehicles accounted for 55% of Sydney’s anthropogenic nitrogen oxide (NOx) emissions, 13% of volatile organic compound (VOC) emissions and 13% of particulate matter (PM2.5) emissions () – all of which have direct and indirect effects on the health of the community. Motor vehicles are also a significant contributor to fine particle and ozone pollution in the Sydney basin (; ). Moreover, about 70 premature deaths each year are associated with long-term exposure to vehicle pollution in the NSW Greater Metropolitan Region, with vehicle exhaust emissions contributing 69% of the fine particle exposures associated with these deaths ().
Biodiversity and soil health
Biodiversity refers to the variety of living animal and plant life and the complex interactions that make up the natural environment. Soil degradation is the decline in soil condition caused by its improper use or poor management, usually for agricultural, industrial or urban purposes. Soils and native vegetation are natural carbon sinks.
Climate change, pollution, invasive species and habitat clearing through intensified agricultural activity and urban expansion are pressures that are having an impact on biodiversity in NSW. Likewise, business-as-usual land management practices and climate change will exacerbate the loss of the soil’s organic carbon and thus reduce productivity. It is important to protect biodiversity and soil heath so that environmental services which support human health, wellbeing and traditional cultures can continue to provide and thrive for future generations.
Initiatives under the Net Zero Plan in the agriculture and land sectors will support landholders and traditional owners to protect and manage biodiversity and soil health on their lands while reducing emissions. Carbon farming is one example of this. It aims to reduce greenhouse gas emissions by sequestering or capturing emissions in vegetation and soils. Such initiatives can mitigate land degradation by encouraging landholders to retain and enhance native vegetation on their land, improve groundcover, and manage stock, crops and waste in more sustainable ways.
The increase in soil organic carbon content derived from Carbon farming has many co-benefits including improved productivity resulting from improved soil structure, increased nutrient cycling and greater diversity of soil organisms (Kragt et al 2016; Baumber et al 2019). Premium carbon projects have environmental and social co-benefits, such as biodiversity outcomes, coastal and wetland regeneration and Aboriginal community development. (). For traditional owners, carbon farming may also have the added benefit of caring for Country. These activities are done in return for carbon credits which landholders can sell in carbon markets to businesses to offset emissions.
The opportunity to improve soil health is not just confined to agricultural land. Pollution from waste can greatly impact soil and contaminate urban lands. A focus on re-use, recycling and reducing waste will result in lower emissions and positive outcomes for soils. Better management of organic waste by diverting it from landfill will help reduce the release of nutrients that pollute soils and waterways. Where organics are properly sorted and processed, they can be turned into compost and natural fertilisers, which can enrich soils when used in farming or gardening.
Indicators have been developed to measure the condition of biodiversity and ecological integrity at statewide and regional scales through the Biodiversity Indicator Program. The NSW Department of Primary Industries is also developing indicators to measure the co-benefits of carbon farming, including biodiversity, soil health and other socio-economic benefits (). Building on these indicators will help to develop measures of the impact of the plan’s initiatives.
Status of initiatives
Since the Net Zero Plan was released in March 2020, extensive scoping and development of initiatives to support NSW’s transition to net zero emissions have been underway. This section outlines how key sectors are being transformed and tracks their performance across the plan’s priority areas:
Energy
| Initiative | Status |
|---|---|
|
The Net Zero Plan includes a range of lower emissions energy initiatives being delivered as part of the NSW Electricity Infrastructure Roadmap (). The roadmap supports the development of new electricity infrastructure in NSW. It will support the private sector to bring 12 gigawatts of renewable energy and two gigawatts of storage, such as pumped hydro, online by 2030. The Roadmap will help NSW deliver on its ambitions to reach net zero emissions by 2050 by reducing NSW electricity emissions by up to 90 million tonnes CO2-e over the period to 2030. The roadmap will support the development of five Renewable Energy Zones (REZs) in the Central-West Orana, New England, South West, Hunter-Central Coast and Illawarra regions of NSW. The Central-West Orana REZ is expected to be shovel-ready by the end of 2022 to unlock up to 3,000 megawatts of new electricity capacity by the mid-2020s and bring as much as |
Being delivered First REZ to be shovel-ready by 2022 and plans for two more REZs announced |
|
Under the Net Zero Plan, the Energy Savings Scheme (ESS) has been extended through to 2050 to continue to encourage energy savings. The country’s longest running energy
The ESS is now a component of the new Energy Security Safeguard with energy savings targets gradually increasing from 2022 and an expanded set of eligible activities. From late 2022, the Safeguard will also include a new Peak Demand Reduction Scheme (PDRS) to create incentives for activities that reduce electricity demand at peak times. The PDRS will help improve the sustainability of electricity by increasing load flexibility in response to variable renewable generation. Initiatives are also being developed under the Net Zero Plan to accelerate the transition of businesses and industry to the new Safeguard. |
Being delivered Scheme expanded and new energy savings targets set Expanded Safeguard is in design |
|
The majority of energy initiatives so far are delivering outcomes that support Priority 1 of the Net Zero Plan which is to drive the uptake of proven emission reduction technologies. Other initiatives are designed to empower customers to make informed decisions about their energy use, which addresses Priority 2 of the plan. Energy Saver provides information about how households and businesses can switch to lower emission retailers and energy solutions that best fit their needs. |
In design |
Transport
| Initiative | Status |
|---|---|
|
The NSW Electric Vehicle Strategy () was launched in June 2021, giving effect to the state’s commitment to increase the uptake of electric vehicles (EVs). Targets include growing EV sales of new passenger and light commercial vehicles to 52% of the market by 2030–31 and the vast majority by 2035. The strategy includes:
Rebates of $3000 were available on sales of the first 25,000 EVs valued at under $68,750 from 1 September 2021*. These rebates are designed to encourage EV uptake and are targeted to the cars more people can afford. Stamp duty has also been removed from EVs under $78,000 purchased from 1 September 2021 and from all other EVs and plug-in hybrids from 1 July 2027 or when EVs reach at least 30% of new car sales, at which time a road user charge will be introduced. These initiatives will support Priorities 1, 2 and 4 of the Net Zero Plan by driving the uptake of proven emission reduction technologies, supporting consumers to make sustainable choices, as well as reducing government transport emissions. |
Being delivered Rebates and tax incentives available for EVs |
*Due to the COVID-19 pandemic, NSW Parliament’s normal operations were suspended in August. As a result, some legislation was delayed. This included the Electric Vehicles (Revenue Arrangements) Bill 2021 (the Bill). To avoid potential delays to the uptake of electric vehicles, the NSW Treasurer announced that stamp duty exemptions and rebates would retrospectively be available from 1 September 2021.
Find out more about electrifying transport
Industry
| Initiative | Status |
|---|---|
|
The Net Zero Industry and Innovation Program was announced by the NSW Government in March 2021. Delivery of programs are now in the market-sounding stage. The $750-million program focuses on supporting NSW industry and business to capitalise on the opportunities in the global transition to net zero. The program has three areas of focus:
The Net Zero Plan committed to a coal innovation program that would provide incentives for coal mines to reduce their fugitive emissions and support the development and commercialisation of new fugitive abatement technologies. Under the Net Zero Industry and Innovation Program, coal mines will be eligible to apply for incentives to implement large scale abatement projects. |
In design Industry consultation underway with over 400 registrations of interest received |
|
The Net Zero Plan set an aspirational target of up to 10% hydrogen blending in the gas network by 2030. Streams across the Net Zero Industry and Innovation Program will help scale up hydrogen as an energy source and feedstock. As part of the New Low Carbon Industry Foundations stream, at least $70 million has been allocated to develop hydrogen hubs in the Hunter and Illawarra regions. These hubs will combine demand from existing and emerging hydrogen users to deliver the fuel in a coordinated fashion that will drive scale, reduce costs, focus innovation and grow workforce skills. The hubs aim to accelerate the growth of the state’s clean hydrogen industry and unlock the heavy transport sector as a key new market for clean hydrogen demand. The NSW Hydrogen Strategy is a plan to support scientists, researchers and industries to rapidly increase the scale and competitiveness of green hydrogen in NSW. As well as delivering the $70 million to develop the State’s hydrogen hubs in the Illawarra and the Hunter outlined above, the NSW Hydrogen Strategy will provide up to $3 billion in support for the hydrogen industry through:
The Strategy is expected to attract up to $80 billion of investment to NSW and to drive deep decarbonisation. |
Being delivered Hydrogen hubs will help deliver on gas target |
|
These industry initiatives will support Priorities 1 and 3 of the Net Zero Plan by driving the uptake of proven emission reduction technologies and investing in innovative future emissions reduction technologies. |
Being delivered Businesses supported to implement energy efficiency measures |
Waste
| Initiative | Status |
|---|---|
|
In June 2021, the NSW Government launched the NSW Waste and Sustainable Materials Strategy 2041: Stage 1 2021–2027 (). The strategy outlines the NSW Government’s approach to making the transition to a circular economy over the next 20 years and outlines actions to achieve the organic waste target of net zero emissions from landfill by 2030, as outlined in the Net Zero Plan. The $356-million strategy will help deliver priority programs and policy reforms that minimise waste and value resources while decarbonising the economy. Strategy actions include:
The Waste and Sustainable Materials Strategy contributes to the plan’s Priorities 1 and 2 to drive the uptake of emission reduction technologies and empower consumers and businesses to make sustainable choices. |
In design Strategy launched and programs in development Target: Net zero emissions from organic waste to landfill by 2030 |
Land use
| Initiative | Status |
|---|---|
|
NSW has abundant land, a strong agricultural sector, technical expertise and a rigorous financial and legal infrastructure, all of which should allow the state to take advantage of the opportunities provided by carbon markets and the transition to net zero while enhancing NSW's productivity and wellbeing. The Net Zero Plan is supported by joint funding from the NSW and Commonwealth Governments, as agreed in the NSW Energy Package Memorandum of Understanding. As part of the MoU, the Commonwealth has committed $450 million through the Climate Solutions Fund to support NSW businesses, farms and land managers to take practical, low-cost actions to reduce emissions. This commitment will provide important environmental, economic and social benefits to local businesses and communities. Under the plan, the NSW Government is working to improve the management of carbon across all land tenures through the Primary Industries Productivity and Abatement Program. Among other things, initiatives will be developed to:
These will work to achieve the plan’s Priorities 1, 2 and 3 to drive the uptake of proven emission-reduction technologies, and empower consumers and businesses to make sustainable choices and invest in innovative future reduction technologies. |
In design |
Built environment
| Initiative | Status |
|---|---|
|
Launched in early 2021, the Low Emissions Building Materials Program is a partnership with industry to grow the demand for these building materials in the construction and infrastructure sectors by driving the modification, adoption and use of voluntary standards. To achieve this, the Materials Embodied Carbon Alliance (MELCA) has been formed in partnership with the World Wide Fund and includes professionals from the building industry and government. Organisations that are big purchasers of steel, concrete and other materials are actively participating in the development of agreed standards for low-emission alternatives. |
Being delivered Over 50 industry bodies have joined MELCA |
|
The National Australian Built Environment Rating System (NABERS) is a rating system that measures the energy, water, waste and indoor environmental impact of buildings in Australia using a six-star scale. NABERS can be used to rate a variety of buildings, including offices, apartments, shopping centres, hotels and data centres. Since the highly regarded program began in 1999, NABERS has helped users save over $1 billion in energy bills and 6 billion litres of water and remove 7 million tonnes of CO2 emissions – equivalent to one year’s worth of power from 93,430 homes (based on Office Energy ratings only). Currently 78% of Australia’s office space is rated with NABERS. In 2020–21, NABERS offered NSW building owners free energy and carbon neutral ratings through the Energy Starters and Carbon Neutral Leaders pilots. This supported NSW building owners to overcome barriers to energy efficiency by enabling them to obtain their first NABERS energy rating and streamlining access to the NSW Energy Savings Scheme. NABERS is also working with industry to investigate an embodied carbon framework for commercial buildings and how this can align with existing building ratings, such as NABERS and Green Star. These initiatives address Priority 2 of the Net Zero Plan by empowering consumers and businesses to make sustainable choices in designing and using the built environment. |
Being delivered NABERS is accelerating the transition to net zero buildings |
Government
| Initiative | Status |
|---|---|
|
Under the NSW Government Resource Efficiency Policy, all NSW Government agencies are required to achieve resource-efficiency targets to reduce energy use, water consumption, waste disposal and air emissions. The policy seeks to achieve significant cost savings from over $400 million of government expenditure. The Net Zero Plan set a new target for government buildings to generate 126,000 megawatt hours per annum of solar energy by 2024. Feasibility assessments for statewide deployment of roof top solar systems are underway to deliver this ambitious solar generation target. Government land assets also present an enormous opportunity to support investment in renewable energy infrastructure, including solar, wind, pumped-hydro, battery storage and a range of other renewable energy technologies, that will contribute to the transition of the electricity sector. Agencies have been encouraged to identify sites that could support diverse renewable energy infrastructure developments in partnership with business and communities. |
Being delivered Feasibility assessments for solar and other renewables on government property are underway |
|
As part of a 10-year contract with Shell Energy, a 100-megawatt battery is being constructed to help power schools, hospitals and government buildings across NSW under the state’s new electricity supply contract. The battery will be near Darlington Point in the Riverina. It will be built and operated by Edify by November 2023 and will support up to 35 jobs during construction. |
In design 100 megawatt battery due to be built by 2023 |
|
In addition to electricity, other whole-of-government procurement policies and processes are also being reviewed to include sustainable and low carbon procurement for goods, services and infrastructure projects. Under the NSW Waste and Sustainable Materials Strategy 2041 (), NSW Government departments will be required to preference products that contain recycled content, including building materials and office fit-outs and supplies, on an ‘if not, why not’ basis. By 2026, all NSW Government-owned and leased buildings over 1,000 square metres will need to obtain and publish a NABERS Waste Rating. |
In design Programs in development |
|
The Net Zero Plan identified commitments to transition the NSW public transport system to low emissions, including the replacement of the state’s 8,000-vehicle bus fleet with electric buses. Transport for NSW rolled out over 50 electric buses across Sydney in early 2021 in the first phase of this work. The NSW Electric Vehicle Strategy () commits These initiatives are in line with Priority 4 of the plan for the Government to lead by example on the road to net zero emissions. |
Being delivered 8000 new electric buses in Sydney $33 million to transition government fleet |
How we are keeping track
The status of initiatives in the Net Zero Plan are being reported in this and future NSW State of Environment Reports.
The NSW Government’s action on climate change is informed by science and economics. It will continue to refine the forecast emission reduction figures to reflect data validations in the national emissions accounts. This, along with program evaluations, may lead to improved understanding and adjustment of programs.
The NSW Government is also looking ahead to determine what it will need to do in the next decades to reduce emissions and get to net zero. The Office of the NSW Chief Scientist and Engineer (OCSE) will prepare a report every two years on emerging technologies that reduce emissions and are commercially competitive. The first of these reports, the NSW Decarbonisation Innovation Study (), was published in August 2020.
The NSW Net Zero Emissions and Clean Economy Board is an advisory body established under Section 34W of the Energy and Utilities Administration Act 1987. The Board will provide advice on the implementation and development of net zero policy and programs, development of emission reduction technologies, low emissions research and other relevant matters.