The NSW blue carbon strategy 2022-2026

‘Blue carbon’ refers to the carbon captured and stored by marine and coastal ecosystems, including seagrass meadows, mangroves, supratidal forests and saltmarshes. These ecosystems can store substantially more carbon per area than land-based forests.

In NSW, marine and coastal ecosystems currently store approximately 10 million tonnes of carbon, the equivalent of emissions from 500,000 households.

The NSW Blue Carbon Strategy 2022-2027 (Strategy) provides a roadmap to support blue carbon projects in NSW, restoring marine and coastal biodiversity and ecosystems.

A key priority under the Strategy is embedding blue carbon in coastal and marine policy, planning and management, enabling ecosystem restoration projects at different scales. In practice, this means reviewing the NSW Planning System to streamline and simplify approvals for blue carbon projects.

What’s changing in the NSW planning system?

In response to the Strategy, the Department of Planning, Housing and Infrastructure (Department) is proposing changes to the NSW Planning System to:

1. make it clearer and easier to obtain approvals for blue carbon and ecosystem restoration projects;
2. continue to protect coastal wetlands and littoral rainforests while streamlining approval processes for low impact proposals; and
3. update approval arrangements for coastal protection works to make them clearer and more practical.

Below, we unpack the changes designed to facilitate blue carbon and ecosystem restoration projects, and to improve the operation of coastal management provisions.

What are tidal restoration projects?

The proposed changes introduce a new land use definition and approval pathway for ‘tidal restoration projects’.

These projects involve reintroducing tidal flows to land that has been completely or partially drained to allow blue carbon ecosystems to re-establish. In practice, this may involve removing floodgates, weirs, levees or other drainage infrastructure.

Tidal restoration projects may already fall within the existing defined land use of ‘environmental protection works’. However, to remove uncertainty, tidal restoration projects will be separately defined in the State Environmental Planning Policy (Transport and Infrastructure) 2021 (T&I SEPP) and the State Environmental Planning Policy (Biodiversity and Conservation) 2021 (B&C SEPP). This will allow tidal restoration projects to be undertaken in any zone as development without consent (if undertaken by or on behalf of a public authority) or with development consent (in any other case).

Tidal restoration works undertaken by or on behalf of a public authority will still require a review of environmental factors under Part 5 of the Environmental Planning and Assessment Act 1979 (EP&A Act).

Critically, this new pathway will prevail over any requirement for development consent or designated development that would ordinarily apply where works occur in a mapped coastal wetland (see sections 2.7 and 2.8 of the State Environmental Planning Policy (Resilience and Hazards) 2021 (R&H SEPP).

Where a tidal restoration project is likely to ‘significantly affect the environment’, an Environmental Impact Statement (EIS) will be required (see Part 5, Division 5.1, Subdivision 3 to the EP&A Act). If undertaken by a public authority (other than Council), the project may be considered State Significant Infrastructure, triggering a more stringent assessment and determination process. The Department is also proposing to prepare an approvals guideline clarifying what constitutes an adverse impact on the environment for the purposes of determining whether an EIS is required.

A clearer pathway for ecosystem restoration projects

The Department is proposing a clearer framework for ecosystem restoration projects across marine, coastal and terrestrial environments, making it easier for both public and private proponents to restore degraded landscapes. The centrepiece is a new streamlined planning approval pathway in the B&C SEPP.

Ecosystem restoration projects will be permitted in any zone as development without consent (if undertaken by or on behalf of a public authority) or with development consent (in any other case).

Improving coastal management provisions

The Department has also proposed amendments to the R&H SEPP and other environmental planning instruments to improve how coastal management provisions operate in practice.

Map review

The R&H SEPP includes a coastal wetlands and littoral rainforests area (CWLRA) map. Stakeholder feedback has identified that where land is mapped as CWLRA but may not in fact contain coastal wetland or littoral rainforest a proponent must either follow the designated development pathway or wait for the next CWLRA map amendment program.

To address this, the Department proposes to leverage map review processes used to update the Biodiversity Values Map, allowing a landholder to request a review. If the review concludes that the land is not coastal wetland or littoral rainforest, an exemption from the development consent or designated development requirements under section 2.7 of the R&H SEPP would apply.

Subdivision of land containing coastal wetlands or littoral rainforests

The Department proposes to amend section 2.7 of the R&H SEPP so that subdivisions are not designated development where no new lot boundaries intersect with, or fall within 100 meters of, the CWLRA. This responds directly to the decision in Gold Coral Pty Ltd (Receiver and Manager Appointment) v Richmond Valley Council [2024] NSWLEC 77.

Subdivisions that intersect or require works within the CWLRA will continue to be assessed as designated development.

Boundary Realignments

The Department proposes to amend section 2.75 of the State Environmental Planning Policy (Exempt and Complying Development) 2008 (Codes SEPP) to specify that boundary realignment in a specified conservation or rural zone is exempt development if it will not change the area of any lot by more than five percent or 10 hectares, whichever is lesser.

What does this mean for you?

Many of these works can arguably already be undertaken by public authorities. Environmental protection works, including wetland protection works, can already be carried out in any zone without development consent. Some councils also already permit environmental protection works without consent regardless of whether the proponent is public or private. Notably, however, environmental protection works do not include coastal protection works.

The bottom line is that changes will make it materially easier for public and private proponents to obtain approvals for blue carbon and ecosystem restoration projects. By providing clear permission for tidal restoration works and streamlining approvals for low impact proposals, the reforms strike a balance between enabling restoration at scale and continuing to protect coastal wetlands and littoral rainforests.

The Explanation of Intended Effects was publicly exhibited until 1 June 2026. The Department will not consider submissions and move to finalise the changes to the planning controls.

Please contact the authors or visit our website to learn more about our Environment & Planning group.

This article was written by Peter Holt, Partner, and Claudia Bilinski, Solicitor.