National

Key state falling short on emissions reduction targets

By Duncan Murray

Jul 23, 2026

Key state falling short on emissions reduction targets — NSW is failing to reduce carbon emissions fast enough to meet rapidly looming targets. -AAP Image

NSW is failing to reduce carbon emissions fast enough to meet rapidly looming targets, a new scorecard has revealed.

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Without change, the state is unlikely to meet its legislated reduction targets of 50 per cent by 2030 and 70 per cent by 2035, a report by the Net Zero Commission revealed on Thursday.

If it is to meet the 2030 target, the state needs to cut emissions 2.5 times faster than the average rate since 2005.

Much of the technology and approaches needed to get the state back on track are already available across electricity, transport, industry and buildings.

However, government decision making - including on proposed coal mine extensions - was not consistent enough with the targets, the commission said.

The rollout of renewable generation, storage and transmission assets is also behind schedule, with the commission identifying the electricity sector as being where a significant portion of the emissions reductions needed to come from.

Getting more electric vehicles on the road by supporting a faster rollout of EV charging networks was another clear path forward, according to the commission.

Methane, which makes up around 30 per cent of the state's current total emissions, should be a focus of reduction across the livestock, waste and coal mining sectors, it also recommended.

Commission chair Nick Rowley said electrification was an enormous part of achieving emissions reduction, saying infrastructure planning processes should be sped up to accelerate the transition.

"The funding is there and the investment is there also," he told AAP.

"The challenge is when you hit the planning system, things happen a little slower."

Mr Rowley said it could hurt public confidence if the state were not to meet its legislated targets.

"It's a question of trust," he said.

"You believe what people actually achieve rather than what they say."

NSW Climate Change Minister Penny Sharpe said the state remained committed to meeting its legislated emissions reductions targets.

"We know there is more work to do," Ms Sharpe said.

"That is why we are accelerating the amount of renewable energy in the grid, decarbonising our transport and manufacturing sectors, and developing a new climate strategy this year to drive further action.

NSW accounts for roughly a quarter of the country's overall emissions.

South Australia has already cut net greenhouse gas emissions by 55 per cent from 2005 levels, putting it on track to reach its 2030 and 2050 targets.

Victoria is aiming for a 40-50 per cent reduction by 2030, based on 2005 levels, having already cut emissions by almost a third since that time.

The state targets fall under the umbrella of broader federal commitments, set by the Albanese government in 2022, for a 43 per cent reduction by 2030 and achieving net zero by 2050.