The Federal Court has rejected a legal challenge to the approval of MACH Energy's Mount Pleasant mine expansion near Muswellbrook and the Whitehaven's Narrabri Underground coal mine expansion.
The Environment Council of Central Queensland had sought a judicial review of Federal Environment Minister Tanya Plibersek's approvals, claiming she had refused to accept the global warming risk associated with the projects.
The council had argued that the Living Wonders cases would raise the risk for climate change for decades.
Environmental Justice Australia said that, unless it was appealed, the judgement cleared the way for the minister to ignore climate change in her risk assessment of 25 new coal and gas projects.
Our client is considering all legal options, including full Federal Court appeals and injunctions," Environmental Justice Australia lawyer and Co-chief executive Elizabeth McKinnon said.
"Our client is awaiting an assurance from the Minister that she will not rush to approve these and the other pending coal and gas projects on her desk while our client considers its appeal rights," she said.
"But whatever happens next, today's decision does not change the science. Nobody, not the Australian Government or the coal mining companies, challenged the facts set out in the thousands of pages of climate evidence."
Combined, the two coal projects would be responsible for more than one billion tonnes of greenhouse pollution. Narrabri Underground will be responsible for a total of 479 million tonnes of carbon dioxide emissions, while Mount Pleasant will be responsible for a total of 876 million tonnes.
Lock the Gate Alliance National Coordinator Carmel Flint said the judgement proved that Australia's national environment laws were broken.
"It shows our laws don't address the biggest environmental problem the world is facing: climate change driven by coal and gas, she said.
"More worrying is the fact that the Albanese Government has no plan to fix this massive blind spot in our laws, and has actively resisted opportunities to address it.
"Communities in the Namoi and Hunter regions are now bracing for the Environment Minister to approve these two enormous coal projects without considering climate impacts, just as they face a brutal summer of climate-induced drought and fire.
Boggabri farmer Sally Hunter, who lives near Whitehaven's Narrabri Underground coal mine, said federal environmental laws were failing communities.
"Farmers in the Namoi Valley, including myself and my family, have been on a rollercoaster of extreme weather lately. My son missed the first few weeks of school this time last year due to repeated major flood events. Our farm was under water. This year, he is undertaking his HSC in a declared drought and high fire danger season.
Climate Council chief executive Amanda McKenzie said climate change was "an enormous bulldozer tearing through the natural ecosystems that people and animals depend on for health, wellbeing and safety."
"Yet, our national environmental law offers little protection against the greenhouse gas emissions that are fuelling dangerous climate change," she said.
"The Great Barrier Reef is under threat. Rainforests are being decimated by catastrophic bushfires. Communities are withering under extreme heat waves. Despite this, today's ruling makes clear that nothing currently stands in the way of massive new coal mines that will cause even more climate and environmental damage."