NSW Environmental & Biodiversity Regulation Updates for 2026

The environmental regulatory landscape in New South Wales is shifting rapidly, driven by both State‑led reforms and the rollout of the Federal Government’s new national environmental laws. For businesses planning projects, managing assets, or preparing for transactions, these changes will have real implications for approvals, risk assessments and ongoing compliance.

Here’s what you need to know, and why it matters.

Why NSW is Changing Its Environmental Framework

Over the past few years, several reviews identified gaps in the way biodiversity, land clearing and offsets have been managed in NSW. At the same time, the Commonwealth announced the most significant modernisation of the EPBC Act in more than two decades.

The result? NSW is now aligning its systems with the new National Environmental Standards, strengthening its own safeguards, and updating assessment pathways to deliver greater transparency, consistency and enforcement.

For businesses, this means the expectations for evidence, due diligence and project justification are increasing.

How NSW is Integrating with the New EPBC Reforms

As the Federal reforms roll out through 2026, NSW assessment processes will begin to integrate with the new national approach. That includes:

• Clearer biodiversity and emissions requirements
• Stronger tests for “unacceptable impacts”
• Expectations for high‑quality ecological and emissions data
• More consistent assessment criteria across states

For projects that trigger both state and federal processes, this alignment will streamline some steps — but also raise the standard of what must be demonstrated up front.

A Stronger Biodiversity Framework

NSW is undertaking significant reforms to lift the performance and integrity of biodiversity management. Recent changes include:

• Updates to the Biodiversity Offsets Scheme, with tighter rules and more oversight
• New public registers to improve transparency around offsets, impacts and decisions
• A shift toward net-positive biodiversity outcomes, not just “no net loss”
• Stronger enforcement, including improved monitoring and new governance structures

More changes are coming under the NSW Government’s Plan for Nature, which will introduce better species protection pathways, recovery planning and updated offset methodologies.

If your operations or proposed developments interact with biodiversity values, expect deeper scrutiny and greater justification requirements.

A Bigger Focus on Emissions and Climate Impacts

Federal reforms have strengthened attention on Scope 1 and Scope 2 emissions, and NSW is following suit.

What this means for proponents:

• Environmental impact statements must address emissions in more detail
• Climate‑risk scenarios are increasingly expected for major projects
• Approvals will look more closely at mitigation and transition pathways

For businesses planning expansions or new developments, climate considerations will now be a core part of the assessment process.

Land Clearing Controls Are Tightening

NSW has faced long‑standing issues around land clearing exemptions and inconsistent controls. This is changing.

Reforms now underway include:

• Narrowing of continuation‑of‑use exemptions
• Stronger enforcement powers
• More consistent application of the mitigation hierarchy
• Clearer links between clearing approvals and biodiversity outcomes

If your site has a history of land clearing (or relies on clearing for future development), expect greater regulatory interest during due diligence and project assessment.

What This Means for Due Diligence

Whether you’re acquiring an asset, planning a project, or preparing for audit, the NSW reforms increase scrutiny across several areas.

Your due diligence should now consider:

• Biodiversity values and offset obligations - including serious and irreversible impacts
• Historical land‑clearing activity - and whether past exemptions still hold up
• Climate‑related risks and emissions profiles - especially for higher‑impact industries
• Legacy contamination and site constraints - which may interact with clearing, offsets or ecological values
• Data quality and recordkeeping - regulators are placing more emphasis on traceability and transparency

The bar is higher, and the expectations are clearer.

How PJRA Helps You Navigate These Changes

At PJRA, we understand the practical realities of getting projects across the line while meeting changing regulatory expectations. Our team supports clients across NSW with:

• EHS&S due diligence for acquisitions, divestments and major transactions
• Biodiversity and land‑clearing risk assessments
• Climate‑risk and emissions profiling for approvals
• Compliance reviews against state and incoming national standards
• Advice on ecological constraints, offsets pathways and approval strategies

We translate complex requirements into practical steps, helping you reduce risk, avoid delays and make informed decisions.

Final Thought

Regulatory change can feel daunting, but it’s also an opportunity to strengthen your environmental governance and demonstrate leadership in a tightening compliance landscape.

If you’re unsure how the NSW reforms may affect your operations or your next project, we’re here to help.

Contact the team at Peter J Ramsay & Associates to discuss your needs and build a clear path forward.

Learn more about how we can assist today

Giorgia McGuigan

Phone: 03 9690 0522

Email: giorgia.mcguigan@pjra.com.au