In an Australian first, the New South Wales Environment Protection Authority (EPA) has released its draft Climate Change Policy and Action Plan.
Under the policy, the EPA will set up targets and enforceable emissions reduction limits for polluters on greenhouse gas emissions that could be phased into the industries it regulates, including mining and agriculture.
About a third of the state's emissions come from coal and gas mining.
EPA chief executive Tony Chappel says it will work closely with industry to work out the best way to reduce emissions, particularly those released in the early stages of mining, or "fugitive emissions".
"There is some frustration that we haven't had a clear framework for considering those impacts, so … there will be, over time, obligations to manage those impacts right down."
Mr Chappel acknowledges that there are some gaps in the way mine proposals are currently assessed, particularly when it comes to how they contribute to climate change.
"We haven't had a clear framework for how proponents and the planning system can consider those impacts so part of this is working with Planning to improve the rigour of that.," he said.
Emissions targets and limits on pollution will be set later, in consultation with industry, but the EPA will avoid duplicating what is already in place, given the federal government already has a "safeguard mechanism" in place to bring down emissions.
Building resilience to disasters
Overall the policy is aimed at achieving the NSW government's target of a 50 per cent reduction in carbon emissions by 2030 (from 2005 levels) and ensuring net zero emissions by 2050.
Mr Chappel also wants to improve resilience to climate change impacts.
"It touches every part of the community and every part of the economy," he said.
"Over the past few years we have seen first-hand just how destructive the impacts of climate change are becoming, not only for our environment, but for NSW communities too.
"Our staff have worked around the clock with the Lismore community, restoring and recovering, cleaning up the impact of those historic floods, from the sewage plant to the landfill, which were all built to withstand a hundred-year flood."
This is the first time in Australia that CO2 is being treated by a government agency as a "pollutant".
Mr Chappel says that is significant.
"I expect other regulators will make similar moves," he said.
"We've seen that in other countries, but for us in NSW we wanted to get started as soon as we can."
Climate council warning
Climate Council chief executive Amanda McKenzie welcomed the policy and said it would turn "government targets for cutting emissions into tangible actions with teeth".
"The NSW EPA has been clear that their new policy is designed to work hand-in-hand with stronger federal laws on pollution — like those that should be delivered through a reformed Safeguard Mechanism — and the inclusion of emissions in federal environmental assessments," she said.
The Climate Council says the draft EPA policy has a significant gap in its treatment of pollution from new fossil fuel projects, which it believes leaves the door open to new coal and gas projects.
Farmers shouldn't be too concerned by the new climate policy, according to Mr Chappel.
He acknowledges the "amazing work" being done by industry group Meat and Livestock Australia.
"They have ambitious targets for carbon-neutral beef, so farmers [are] part of the solution, not the problem," Mr Chappel said.
The draft EPA Climate Change Policy and Action Plan is available online and comments are open until November 3.
