Coal plants should pay carbon costs if they operate past closure dates
The Smart Energy Council proposes making coal plants pay carbon costs for every year they operate beyond their agreed closure date.
The Smart Energy Council says several coal-fired power stations that operate past their closure dates should be forced to buy carbon credits for their emissions. Under the Safeguard Mechanism, plants operating after their agreed end date would need to buy Australian Carbon Credit Units for each tonne of emissions.
The proposal would not force closures. The proposal would remove the free pollution allowance, according to council chief David McElrea.
Eraring, a major NSW plant, is scheduled to close in April 2029. There is speculation it could stay open longer.
The plant has already had its closure date pushed back twice. McElrea said extending coal's life delays renewable energy investment.
It creates worker uncertainty. All coal stations would receive zero emissions allowance by 2035 under the council's proposal.
- April 30 2029
- Eraring closure date
- 2 extensions
- Times closure delayed
- 2035
- Zero allowance target year
- David McElrea
- Council chief
Why it mattersIf adopted, the plan could make it costly to keep ageing coal plants running, speeding the shift to renewable energy and creating clearer investment signals.
AustraliaCoal-dependent regions like NSW would face pressure to retire plants sooner, affecting hundreds of workers and communities reliant on power station jobs.
✓ Claims checked against the source. checked 28 d ago
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