Key findings
Around one third of emissions in New South Wales come from buildings and from manufacturing, construction, mining, and waste facilities. By 2050, the Commission estimates these sources will make up about half the state’s emissions.
The second paper in our Achieving net zero research series identifies how we can accelerate abatement from these sources to support our state’s legislated emissions reduction targets:
- Buildings: transition most gas use by electrifying existing buildings, improving energy efficiency in buildings, and local councils ending gas connections for new buildings (noting the NSW Government has ruled out imposing a ban at the state level).
- Manufacturing and construction: electrification into a low-emissions electricity system, energy efficiency, and uptake of zero-emissions fuels like green hydrogen and green ammonia in place of fossil fuels.
- Mining and extraction: government decisions on strategic planning and development consents to clarify the future of mining so operators can plan to reduce their fugitive and onsite energy emissions, while considering royalty impacts on the State’s budget, and new opportunities in critical minerals.
- Waste: on-site management to reduce and capture methane emissions.
Right now, the Australian Government’s Safeguard Mechanism prices emissions from large facilities in New South Wales. This could be expanded beyond the largest industrial and waste facilities, as recommended by the Commonwealth Productivity Commission in 2023. Alternatively, the states can step in to address emissions from these facilities, such as through New South Wales’ load-based licensing scheme. Quality regulation could also support abatement from these sources.