A landmark High Court ruling involving the Mount Pleasant coal mine in New South Wales has increased uncertainty around future fossil fuel developments after judges found planning authorities needed to properly consider emissions generated when exported coal is ultimately burned overseas.
The case centred on MACH Energy’s proposed expansion of the Hunter Valley mine, which would allow production to increase substantially and extend operations until 2048.
The High Court dismissed MACH Energy’s appeal, leaving in place an earlier decision that found the project’s Scope 3 emissions needed to be considered when assessing its environmental consequences.
Scope 3 emissions include greenhouse gases produced outside Australia when exported coal is burned by customers.
Other projects could face scrutiny
The ruling does not force the existing Mount Pleasant operation to close.
The mine has separate approval to continue operating until 2032, while the proposed expansion can potentially be reassessed under the current NSW planning framework.
However, the judgment has triggered concern across the resources industry because other major coal developments could face similar requirements.
Industry groups argue that forcing Australian planning bodies to consider emissions created by overseas customers risks creating uncertainty for investment and export projects.
Environmental groups view the ruling as an important recognition that climate impacts do not stop at national borders.
NSW Premier Chris Minns has played down suggestions of an immediate legislative response, describing the case as relatively narrow and arguing the existing planning system can deal with the issue.
The decision nevertheless adds another layer of complexity to coal investment in Australia.
For miners, future project approvals may increasingly depend not only on what happens at the mine site, but also on the emissions produced after Australian resources leave the country.
