The NSW Minerals Council has called on the State Government to abolish the Net Zero Commission, accusing the independent climate advisory body of taking an increasingly hostile position towards the coal industry.
The mining industry organisation made the demand as almost 500 sector representatives gathered in the Hunter region for the annual NSW Mining Health, Safety, Environment and Community Conference.
Its intervention follows the Net Zero Commission’s involvement in the assessment of the proposed Hunter Valley Operations Continuation Project, which would extend coal mining operations near Singleton.
The call represents the position of the NSW Minerals Council. The NSW Government has not announced plans to abolish the Commission.
Industry group targets statutory climate body
The Net Zero Commission was established under the Climate Change (Net Zero Future) Act 2023.
It is an independent statutory NSW Government agency responsible for monitoring and reviewing the state’s progress towards legislated emissions reduction targets and its climate adaptation objective.
The legislation states that the Commission is generally not subject to ministerial direction and must consider the environmental, social, economic and regional impacts of climate policy when performing its functions.
NSW Minerals Council chief executive Stephen Galilee described the Commission as a taxpayer-funded activist organisation and argued that it had become disproportionately focused on restricting coal mining.
Those descriptions are political and industry characterisations rather than findings made by an independent authority.
Abolishing the Commission would likely require legislative action because its existence, structure and functions are established in state law.
Dispute centres on Hunter Valley Operations
The immediate dispute relates to the Hunter Valley Operations North and South Open Cut Coal Continuation Projects.
The projects seek approval to extend mining at HVO North and HVO South beyond their existing approved operating periods.
Current proposals would extend HVO North to 2045 and HVO South to 2042, although some NSW planning documents continue to describe elements of the North proposal using a 2050 assessment horizon.
The projects are being assessed by the NSW Independent Planning Commission following public hearings held on 16, 17 and 22 July 2026.
The Commission also held a separate meeting with the Net Zero Commission on 24 July.
The IPC’s public project register confirms that the meeting occurred, but no transcript or presentation from that meeting was publicly available at the time of reporting.
The Minerals Council claims the Net Zero Commission directly opposed the HVO proposal during the meeting.
Until the IPC publishes the meeting documents, the precise advice given and the reasoning behind it cannot be independently assessed from the public record.
Jobs and economic contribution emphasised
The Minerals Council says the continuation project supports approximately 1,500 direct jobs and thousands of indirect jobs through contractors and about 750 supplier businesses.
The 1,500-job figure is also used by the project proponent and in the Minerals Council’s earlier submissions supporting HVO.
The industry body argues that refusing the extension would affect Hunter Valley workers, local businesses, export earnings and state royalty revenue.
It also claims that a broader reduction in NSW coal production could place thousands of mining jobs at risk over the coming years.
These forward-looking employment estimates rely on assumptions about mine approvals, commodity demand, closure schedules and alternative employment opportunities. They should therefore be attributed to the Minerals Council rather than presented as confirmed outcomes.
HVO highlights proposed emissions reductions
Hunter Valley Operations says it amended the original continuation proposal following regulatory and community feedback.
The company says the revised plans would reduce total direct greenhouse gas emissions by 43 per cent compared with its original proposal, including a 55 per cent reduction in fugitive emissions and a 30 per cent reduction in diesel emissions over the life of the project.
These figures compare the amended proposal with the earlier project design. They do not mean the continuation project would eliminate emissions or reduce them below those produced if the extension did not proceed.
Environmental organisations argue that the project would still generate substantial direct and downstream emissions because most of the additional coal would ultimately be burned overseas.
The final planning assessment must consider the project’s economic, social and environmental impacts before a decision is made.
Commission has raised concerns about coal emissions
The Net Zero Commission’s first annual report concluded that NSW needed to accelerate action to meet its legislated climate targets.
Its work has included examining emissions from coal mining and the potential effect of proposed mine extensions on the state’s emissions trajectory.
The Commission has not been given power to approve or reject coal mines.
Its role is to monitor progress, provide independent advice and make recommendations. Final planning decisions remain with the relevant consent authority, including the Independent Planning Commission where applicable.
The Minerals Council argues that coal mining represents about 13 per cent of total NSW emissions and that emissions from the sector have declined faster than the statewide average.
The material supplied by the industry body does not provide the underlying dataset or calculation methodology needed to independently confirm those specific claims.
The Commission’s statutory remit also requires it to consider whether the state as a whole is on track to achieve its legislated targets, rather than assessing a sector only by its current percentage of total emissions.
Claims about staff backgrounds disputed
The Minerals Council also criticised the employment and advocacy backgrounds of some people associated with the Commission, alleging links to environmental organisations and campaigns opposing coal projects.
The Commission’s publicly listed commissioners have backgrounds across climate policy, economics, finance, science, government, energy and sustainability. Under the Act, appointments must collectively cover areas including climate science, economics, technology, regional interests and the social impacts of climate change.
Previous employment with an environmental organisation does not by itself establish that a commissioner or staff member is acting improperly in a statutory role.
No evidence was provided in the Minerals Council statement of unlawful conduct, undisclosed conflicts of interest or a breach of the Commission’s governing legislation.
Any specific allegation about conflicts would need to be assessed against appointment requirements, disclosure rules and the conduct of individual officials.
Budget claims require clearer evidence
The Minerals Council says the Commission has an annual taxpayer-funded budget of almost $5 million and approximately 30 staff.
The Commission confirms that it has commissioners and a supporting public-service team, but the exact current staffing level and annual operating budget were not clearly stated on the public pages reviewed for this report.
Those figures should therefore be attributed to the NSW Minerals Council unless supported by a current budget or annual-report breakdown.
The Commission’s expenditure must be considered separately from the broader NSW Climate Change Fund, which finances a much wider range of government climate and energy programs.
Government has not backed abolition call
The NSW Government has not indicated that it intends to disband the Net Zero Commission.
The government established the body through legislation passed in 2023 to provide independent oversight of targets that include net zero emissions by 2050.
The Commission’s latest work includes its 2026 Annual Progress Report and advice to the government on the Net Zero Plan to 2035.
The dispute highlights growing tension between the state’s emissions commitments and the economic role of coal mining in the Hunter and other regional communities.
Supporters of the Commission argue that independent scrutiny is necessary to test whether individual project decisions are consistent with long-term climate targets.
The Minerals Council argues that the body’s approach threatens jobs, investment and the future of the coal industry.
For now, the abolition demand remains an industry advocacy position. The future of the Commission would ultimately be a matter for the NSW Government and Parliament, while the HVO continuation proposal remains subject to a separate and ongoing planning decision.
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