2026 Annual Progress Report - New South Wales

The Net Zero Commission’s 2026 Annual Progress Report finds that while New South Wales has made meaningful progress in reducing emissions and expanding low-emissions technologies, the current pace of decarbonisation is insufficient to meet the state’s legislated targets of a 50% reduction in emissions by 2030 and 70% by 2035. The projected emissions gap has widened, with NSW needing to reduce emissions around 2.5 times faster than its historical average to meet the 2030 target. The Commission identifies faster deployment of renewable energy, storage and transmission; greater uptake of electric alternatives in transport, buildings and industry; significant reductions in methane emissions; stronger climate policy across all sectors; and greater investment in climate adaptation as priorities. It also emphasises that decisions such as coal-mine expansions and new large industrial loads need to be consistent with NSW’s climate targets, while communities, local governments and First Nations peoples should be better supported to lead local climate action. Overall, the report concludes that NSW has a foundation for achieving net zero, but substantially stronger and faster government action is now required to close the emissions gap and prepare communities for increasing climate risks.