New South Wales (NSW) in Australia is set to stop accepting new coal mine applications and implement regulations aimed at reducing methane emissions from current projects in an effort to achieve net-zero goals.
The state government clarified that the prohibition on greenfield coal mines will not impact existing operations or the expansion of current projects.
Coal remains NSW's most valuable export, contributing approximately A$33bn annually, with shipments primarily consisting of thermal coal destined for power stations in China, Japan and Taiwan, reported Bloomberg.
The government plans to maintain support for existing coal production while implementing stringent regulations around future developments.
This approach aims to uphold NSW's commitments to trading partners, fulfil local needs, and ensure stability for workers and communities in coal-producing areas.
The government has unveiled a strategic plan, NSW Coal Industry 2026–50, which outlines the future of coal in the state.
The plan says that applications to expand current mining operations adjacent to existing sites will be evaluated, provided they adhere to stringent environmental and emissions standards.
Coal producers will be expected to contribute to NSW’s emissions reduction objectives by lowering on-site emissions through established abatement technologies and complying with enhanced regulatory controls set by the Environmental Protection Authority (EPA).
To assist regions reliant on coal as demand changes, the government is working to establish a Future Jobs and Investment Authority.
This authority, currently under parliamentary review, will focus on transitioning the estimated 26,000 workers employed in the industry into new roles and repurposing coal mining land and infrastructure for new investment, job creation and regional development.
The EPA has mandated that miners capture, treat or convert methane gas to prevent its release into the atmosphere.
Large mines must drain or flare gas from seams they intend to mine, while old mines with methane leaks must be resealed.
According to the EPA, coal mining is the primary contributor to fossil methane emissions, accounting for approximately 30% of the state's emissions and roughly 11% of its overall greenhouse gas releases.
Unlike other sectors that release methane by cycling atmospheric gases, coal mining extracts fossil methane that has been trapped underground for several years.
