The Albanese Government’s fossil fuel approvals

Updated: 13 Feb 2026

Despite championing climate action during the 2025 Federal Election, one of the re-elected Albanese Government’s first acts was the proposed approval of a 45-year extension of Woodside’s North West Shelf gas export project – Australia’s second most polluting fossil fuel extraction project.

In November 2025, The Albanese Government reformed Australia’s national environment law, which determines whether projects that impact the environment – like fossil fuels – can go ahead. Unfortunately, these reforms failed the climate test, and continue to give new coal and gas projects a free pass on climate pollution.

Having missed this opportunity to act on fossil fuel pollution, the Albanese Government has continued to approve new and expanded fossil fuels projects, starting the new year by approving the expansion of a new thermal coal mine.

Fossil fuel projects approved during the Albanese Government’s second term:

In their first term, the Albanese Government approved 27 new coal, oil and gas developments. The eight new approvals this term brings the total to 35. 

But there are even more projects seeking Federal government approval. There are currently 42 further new or expanded coal mines seeking Federal Government approvals, with the potential to release more than 9 million tonnes of pollution every year in the 2030’s, before considering the even more substantial climate pollution from burning the coal, oil, or gas they produce. This is equivalent to more than all Australia’s >600,000 domestic flights every year. These projects present a substantial risk to achieving both Australia’s climate targets and global goals of keeping warming well below 2ºC.

Australia’s fossil fuel exports are a globally-significant source of pollution

Australia is the world’s third-largest fossil fuel exporter based on energy content, and the second largest by climate pollution content. Each year, Australia exports 2.5 tonnes of climate pollution for every tonne of pollution released in Australia. These emissions – no matter where they’re emitted – harm Australians by heating the global climate and exacerbating extreme weather events.

While most emissions from Australian fossil fuel projects occur overseas, these projects also represent a significant drag on Australia’s domestic decarbonisation efforts. Fossil fuel extraction is one of Australia’s most polluting sectors. Fossil fuel projects cause significant direct pollution, both from the diesel used for machinery and trucks, and the escape of ‘fugitive’ emissions previously locked in coal and gas deposits. In 2035 the sector is expected to emit 62 Mt CO₂-e, about 21% of our total emissions, or more than the emissions from every car, ute and truck in 2035.

A national target includes all sectors. If the fossil fuel export industry grows and takes up more of our national target, it means that other sectors need to do more work in meeting that target.

The Safeguard Mechanism doesn’t neutralise these emissions

The Albanese Government has often claimed that the climate impacts of new and expanded fossil fuel projects are managed under the Safeguard Mechanism, and therefore innocuous.

The Safeguard Mechanism does not properly address climate pollution from fossil fuel projects. It only requires projects to offset the share of their pollution which is above a certain ‘baseline’ level, but never requires projects to actually reduce their actual on-site emissions.

Australia’s climate laws do not govern project approvals. The Safeguard Mechanism only applies after a project is operating, and there is no federal law that allows a coal or gas project to be stopped because of its climate harm.

That’s why the Safeguard Mechanism cannot be used as a justification for approving fossil fuel projects. Every new coal and gas development adds more pollution — and more climate risk.

Fossil fuel developments approved under the Albanese Government

Approved coal projects:

Approved oil and gas projects:

Offshore exploration permits issued:

9 exploration permits were issued by the Resources Minister:

• Esso (ExxonMobil): 3x Otway Basin, 1x Sorell Basin
• Beach Energy – 1x Otway Basin
• Chevron – 1x Northern Carnarvon Basin (WA) 
• Melbana – 1x Northern Carnarvon Basin (WA) 
• Woodside – 1x Northern Carnarvon Basin (WA)
• Inpex – 1x Bonaparte Basin (NT)

¹ Total emissions over approved project life in CO₂ equivalent terms. Estimates based on proponent documents. Includes on-site emissions, emissions from coal or gas combustion in Australia and overseas, and other indirect emissions.
² On-site abatement is estimated based on current DCCEEW projections. By 2035, the Safeguard Mechanism is expected to incentivise reductions in direct emissions from oil and gas projects by 22.9%, and coal projects by 23.5% (including both fugitive emissions and on-site energy use). These projections are highly uncertain and based only on early post-reform data. Assuming this reduction applies homogeneously across relevant projects in 2035 would reduce the impact on 2035 emissions by 0.5 percentage points, to 1.6% of 2005 emissions.