Australia's High Court Rules Scope 3 Emissions Must Be Considered in Coal Mine Approvals
The High Court ruled Scope 3 emissions must be considered in resource project approvals.
Why it matters: This decision increases legal scrutiny on resource companies for indirect emissions, affecting compliance and future permitting. Legal teams must now integrate full emissions profiles into risk assessments.
- On Oct 7, 2026, the High Court dismissed MACH Energy's appeal on Mount Pleasant coal mine expansion.
- The New South Wales Independent Planning Commission failed to address conditions on Scope 3 emissions, which are 98% of total emissions.
- Scope 3 emissions include indirect emissions from downstream use, like burning exported coal.
- The ruling establishes a binding precedent requiring planning bodies to consider minimizing all greenhouse gas emissions, including Scope 3.
On October 7, 2026, Australia’s High Court rejected MACH Energy Australia Pty Ltd's appeal to extend the Mount Pleasant coal mine in New South Wales, reaffirming the importance of climate considerations in resource approvals. The court found that the New South Wales Independent Planning Commission (IPC) erred by failing to consider conditions aimed at minimizing Scope 3 greenhouse gas emissions, which constituted a staggering 98% of the project's total emissions.
Scope 3 emissions refer to indirect greenhouse gases arising from the downstream use of a company's products, especially the combustion of exported coal in this case. This ruling marks a pivotal shift, compelling planning authorities nationwide to evaluate and mitigate the complete greenhouse gas impact of fossil fuel projects.
Previously, Australian environmental assessments had not explicitly required the inclusion of Scope 3 emissions, allowing regulatory bodies to overlook the climate damage caused by the end use of fossil fuels. The High Court’s decision aligns Australia with a growing international legal trend holding companies accountable for the full lifecycle emissions of their outputs.
Tim Buckley, Director of Climate Energy Finance, highlighted the ruling's significance: "This case sets a precedent for considering the whole emissions profile of burning fossil fuels, including the exported emissions." The Mount Pleasant project aimed to boost annual coal production from 10.5 million tonnes to 21 million tonnes, extending mine life to 2048 and adding extraction of 406 million tonnes of coal.
This ruling is expected to reshape environmental regulatory compliance and risk assessment for resource companies and their legal counsel, influencing litigation and permitting practices by requiring that climate impacts from all emission sources, direct and indirect, be fully accounted for in approval processes.
By the numbers:
- 98% — proportion of total greenhouse gas emissions from Scope 3 emissions in the project
- 21 million tonnes — proposed annual coal production if expansion were approved
- 406 million tonnes — additional coal planned for extraction under expansion