The NSW Government has responded to a parliamentary inquiry on how the state’s planning system manages climate change risks. The Portfolio Committee No. 7 led the inquiry, focusing on flooding, bushfires, rising sea levels, biodiversity loss, and urban heat. It also assessed governance, public engagement, and councils’ ability to adapt. The committee’s final report, published in late 2024, made 18 recommendations to improve climate resilience, environmental protections, and community participation.
In February 2025, the government outlined which recommendations it will implement, which require further review, and which it will not pursue. Several key proposals received full or partial support. These include expanding access to climate risk data, updating planning policies to address climate risks, and improving urban heat mitigation. The government also pledged to support councils and improve public participation in planning. However, it rejected proposals for mandatory public hearings on major developments and stronger legal protections for Development Control Plans (DCPs).
Key Recommendations That Will Proceed
The government has backed several initiatives to strengthen climate resilience in the planning system. The NSW Climate Change Adaptation Action Plan 2025-2029 will guide how climate risks are factored into land use and infrastructure. The NSW Plan for Nature will also strengthen biodiversity protections to prevent damage to critical ecosystems.
To help councils and developers make informed decisions, the NSW Reconstruction Authority (NSWRA) is developing a central database of climate risk data. It will include flood mapping, bushfire hazards, and biodiversity information. The government says this will ensure climate risks are properly considered before approving new housing or infrastructure projects.
The government also supports efforts to reduce the urban heat island effect. Planning controls will encourage more tree canopy coverage and climate-sensitive building designs. Public participation in planning will also improve through updates to the NSW Planning Portal, which recently received $20.4 million in funding. These upgrades will make it easier for residents to track development proposals and engage in the planning process.
Recommendations Requiring Further Review
Some recommendations remain under review. The government acknowledged concerns about historical development approvals, which were granted under outdated planning rules that did not consider modern climate risks. However, it is waiting on the findings of a Legislative Assembly inquiry, expected later this year, before making policy changes.
Coastal planning is also being reviewed. The inquiry proposed a state-level governance structure to help councils manage coastal risks like flooding, erosion, and rising sea levels. While the government recognizes these challenges, it believes existing frameworks already provide enough support for councils.
Recommendations That Will Not Proceed
Some proposals will not move forward. The inquiry recommended giving the Independent Planning Commission (IPC) more authority to hold public hearings on major developments. The government rejected this, stating that the Environmental Planning and Assessment Act 1979 already allows the Minister for Planning to request hearings when needed.
It also declined a proposal to increase the legal weight of Development Control Plans (DCPs) in the Land and Environment Court. These plans guide local development, but the government maintains that courts should continue assessing their relevance on a case-by-case basis.
First Nations Involvement and Managed Relocation Plans
The response includes commitments to strengthen First Nations involvement in planning. The government will work with Local Aboriginal Land Councils to identify land for potential development and explore land swaps for areas vulnerable to climate risks. It also reaffirmed its commitment to protecting cultural heritage and incorporating Indigenous knowledge in planning decisions.
Additionally, the government supports developing a managed relocation framework for communities at high risk of climate-related disasters. The NSW Reconstruction Authority is leading this effort. It will guide responses for communities facing long-term risks from extreme weather, rising sea levels, or other environmental threats.
What’s Next?
With the government’s response now released, the focus shifts to implementing supported recommendations, refining policies, and reviewing pending legislative changes. Work has already started on integrating climate risk assessments into planning decisions and improving access to hazard data for councils.
Further legislative inquiries will determine the next steps, especially regarding historical development approvals and community participation in planning. The findings of the Legislative Assembly inquiry into historical development consents, expected later this year, may influence future policies. Meanwhile, government agencies will continue evaluating potential improvements in biodiversity conservation, coastal management, and public engagement.
The NSW Government has emphasized its commitment to climate-responsive, transparent, and inclusive planning policies. It plans to work with councils, planning bodies, industry experts, and community stakeholders to ensure future developments are sustainable and climate-resilient.
For more information and updates, visit the NSW Parliament Inquiry page.
