NSW assured Eraring lifeline won't kill climate goals

The closure date of Australia's largest coal-fired power station remains up in the air but extending its life will not stop NSW meeting its freshly legislated emissions goal, the state's energy minister says.

Penny Sharpe on Thursday introduced a bill to set into law the state's 2050 net-zero emissions target and establish an independent commission to review and report annually on the government's progress.

An interim target to halve 2005 greenhouse gas emissions by 2030 has also been included.

Eraring Power Station
The Eraring Power Station has been the subject of protests by climate activists.

The plan drew a mixed response from environmental groups amid NSW's sensitive negotiations with Eraring's owners to extend the life of the coal-fired power station past August 2025 to ward off potential electricity shortfalls.

But Ms Sharpe was confident the targets - announced by the previous government but never legislated - remained achievable.

"When the targets were announced ... in 2021, let's remember that Eraring was to stay open until 2032," she told reporters.

"The whole point of legislating the targets and having the Net Zero Commission is it'll track how we're doing and, if we need, to make sure that we get there."

Official modelling shows NSW is on track to cut emissions by 55 per cent on 2005 levels by 2030 and 70 per cent by 2035 under current policies.

While describing the targets as "a floor not a ceiling", Ms Sharpe batted away the Greens' suggestion to go for net zero by 2035.

"Frankly, NSW could not achieve that and our communities couldn't take that," Ms Sharpe said.

"The Greens can keep pushing for a harder target - they have zero plan to get there."

NSW Climate Change Minister Penny Sharpe on the introduction of the net-zero future bill.

Victoria and the ACT have legislated net-zero targets while hydro-powered Tasmania has achieved net-zero emissions repeatedly in recent years.

While welcoming the targets being enshrined in law, green groups were concerned about achieving them as the government extended the use of fossil fuels.

"The Minns government can't prop up the largest coal plant in the country without seriously undermining its climate agenda," Nature Conservation Council NSW chief executive Jacqui Mumford said.

"The science is very clear on what needs to happen to meet this responsibility - we need to reduce emissions across every sector of the economy."

The opposition, which went to the March election promising a 70 per cent cut by 2035, said legislating targets would not solve infrastructure problems.

"The community is still in the dark when it comes to Eraring and we deserve transparency from this Minns government," climate change spokesman James Griffin said.

Rewiring Australia meanwhile urged a household electrification focus and stressed the commission needed "Reserve Bank style" independence to ensure honest feedback and a focus beyond the electoral cycle.

Five to seven part-time commissioners and their staff, with input from the chief scientist, will monitor how various industries are reducing emissions.

Annual reports to parliament will call out government failures and force a response to recommendations.

The legislated target comes after almost $2 billion was committed in the September budget to help the state transition to a grid powered by renewable energy.

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