NSW’s Net Zero Mandate for Government Agencies

The NSW Government has made a clear move toward climate leadership with the release of the Net Zero Government Operations Policy. This policy commits to reducing emissions, improving energy efficiency, and integrating circular economy principles throughout the public sector! 

The policy mandates all NSW government agencies with 100 or more staff to reduce greenhouse gas (GHG) emissions and minimize environmental impacts. Agencies with fewer than 100 employees are encouraged to participate voluntarily. 

What’s Required? 

Some of the core requirements include: 

→ Reduce Emissions 

• By 30 June 2027, agencies must identify and act on their most significant scope 3 emissions sources. 

• Agencies should aim to reduce scope 1 and 2 emissions in line with the NSW Government target: 50% by 2030, 70% by 2035 (on 2018–19 levels), and net zero by 2050. 

→Net zero transition plans must be in place by 1 January 2026. Plans must include, as a minimum: 

• Emissions reduction targets for scope 1 and 2 emissions 

• Cost-effective energy efficiency opportunities, including targets for reducing energy use (if appropriate) 

• Cost-effective solar photovoltaic opportunities, including targets for solar generation and energy storage (if appropriate) 

• The targets and actions outlined in this policy, such as the electrification of buildings and fleet 

• A GHG emissions monitoring plan 

→All-Electric Buildings & Energy Efficiency 

• From 1 July 2026, all new office buildings commissioned for, or by, the NSW Government must be all-electric. 

• By 1 January 2035, all government-owned or leased office buildings must be fully electrified. 

• All other new non-residential buildings must be fossil fuel–free after 1 January 2035. 

• Agencies with large energy loads must investigate how they can reduce pressure on the electricity grid during high-demand periods. 

→Minimum NABERS Ratings 

• All new and existing government-owned and leased office buildings are required to achieve and maintain the minimum NABERS Energy, Water, and Waste ratings set out in the Policy. 

• NSW public schools and preschools, where suitable to be rated, will be required to obtain a NABERS Energy and Water rating by 30 June 2026. 

→Waste Reduction and Circular Procurement 

• From 1 July 2026, facilities generating high volumes of food waste must implement organics collection services. 

• From 1 July 2025, agencies must prefer recycled content products in procurement choices.  

Agencies must report their progress annually, monitoring performance against established key performance indicators (KPIs). This information will be made public by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), highlighting each agency's contribution to the state's legislated climate targets. 

The full Policy can be accessed here.  

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