The New South Wales (NSW) government will no longer consider applications for new standalone greenfield coal mines, it announced on Friday, unveiling a policy aimed at balancing emissions reduction targets with ongoing support for existing operations.

The new NSW Coal Industry 2026–2050 strategy sets out a long-term framework for the sector while providing what the government says is certainty for workers, communities and investors.

Under the plan, new greenfield coal mine proposals will be effectively banned, while extensions to existing operations adjacent to current mines may still be approved, subject to environmental and emissions requirements.

The policy draws a clear distinction between maintaining current production capacity and limiting future expansion, as the state prepares for a gradual decline in global coal demand.

“Coal has powered NSW for more than a century, and it will continue to support our economy for decades to come,” said NSW Minister for Natural Resources Courtney Houssos.

“We’ve engaged with communities, industry, consent authorities, environment groups and trading partners. Their feedback has shaped a direction that gives certainty, sets firm expectations and keeps NSW a reliable supplier where market demand exists.”

The government said coal would continue to play a role in energy security and steelmaking, particularly in supporting Australia’s domestic manufacturing capability, but emphasised that producers would be required to reduce onsite emissions in line with legislated targets.

Planning approvals will continue to assess emissions, with strengthened regulatory oversight from the state’s environmental authorities.

Minister for Planning and Public Spaces Paul Scully said the policy sets clearer expectations for industry as the energy transition accelerates.

“This is an important milestone in NSW’s energy transformation, which sets clear expectations for industry and provides certainty for the regions,” he said.

“Thermal coal remains important for jobs, energy security and manufacturing, and metallurgical coal plays a vital role in Australia's sovereign steel-making capability largely based in the Illawarra.”

The strategy also includes measures to support coal-dependent regions through economic diversification, including the establishment of a Future Jobs and Investment Authority tasked with repurposing mining land and infrastructure.

Minister for the Hunter, Yasmin Catley, said the plan aimed to provide stability for coal communities.

“The workers of the Hunter have kept the lights on in NSW for generations, and they deserve certainty about what comes next.

"This plan recognises the vital role coal communities have played in building our state and provides a clear path forward for workers, businesses and local communities.”

The government is already working with industry and local councils on post-mining land-use initiatives, including pilot projects in Muswellbrook and Lake Macquarie aimed at unlocking new investment and employment opportunities.