The NSW Department of Planning, Housing and Infrastructure (DPHI) has announced the preparation of a proposed new Climate Change and Natural Hazards State Environmental Planning Policy (the CC&NH SEPP). DPHI has published an Explanation of Intended Effect (EIE) to outline the intended effect of the proposed new CC&NH SEPP, with an overview of the proposed SEPP available here.
If implemented following public consultation, the CC&NH SEPP would replace the existing Resilience and Hazards SEPP, with the aim of providing a more consistent and streamlined approach to managing climate and natural hazard risks under the Environmental Planning and Assessment Act 1979 (NSW) (the EP&A Act) development assessment framework.
The CC&NH SEPP would require decision-makers to place greater weight on the impact of climate change and associated risks (such as heat waves and urban heat) to development than is currently required under the existing planning framework, which developers would need to account for when progressing development applications.
Consultation on the EIE for the CC&NH SEPP is open until 5pm on Monday 16 March 2026.
What developments does it apply to?
The CC&NH SEPP would apply Statewide to local development, State significant development, and State significant infrastructure. However, it is expected that the relevance of certain provisions of the SEPP to a particular development would largely depend on the location of the development and its exposure to climate and natural hazard risks.
What is the purpose?
The CC&NH SEPP would seek to address the growing challenges presented by climate change and natural hazards such as urban heat, bushfires, coastal hazards, and flooding, as well as the process of rebuilding after a natural disaster.
This follows amendments to the EP&A Act which introduced a climate change and natural hazards object and updated provisions in it relating to bushfire prone land.
The CC&NH SEPP is intended to complement existing climate change and hazard plans including the NSW Climate Change Adaptation Action Plan 2025-2029 and the State Disaster Mitigation Plan 2024-2026.
In respect of climate change, DPHI has indicated that the provisions of the CC&NH SEPP will be directed toward mitigating the impacts of climate change on development, as opposed to an assessment of a particular development’s contribution to climate change.
What are the key things you need to know?
The key proposed provisions of the CC&NH SEPP would be:
Climate change: requiring that matters such as climate change risk (taking into account projected climate change), climate change risk mitigation strategies, design and construction methods, and the use of approved climate change scenarios, all feature in a qualifying development’s application process.
Bushfires: including objectives that complement the existing legislative framework and guidance around bushfire protection, and the degree to which this is considered in the application process. These objectives may require consent authorities to avoid inappropriate developments in high-risk bush fire locations or circumstances, and ensure areas identified for population growth and development are planned and designed to improve resilience and minimise the risk of bushfires to life and property, among other considerations.
Coastal hazards: incorporating aspects of the existing legislative framework that addresses coastal management (for example, under the Coastal Management Act 2016 (NSW)) into the development application process.
Flooding: consolidating and expanding on flood planning provisions of local environmental plans that influence the development application process. This will provide clarity and consistency for proponents and planners.
Rebuilding after disasters: updating provisions for rebuilding homes after natural disasters. It would mandate "build back better" principles to ensure repaired or rebuilt dwellings are significantly more resilient to future hazards and signals a movement away from replacing vulnerable structures in high-risk areas.
DPHI has also released for consultation the following documents (which would support the CC&NH SEPP if implemented):
Climate Change Scenario Guidelines: guidelines intended to ensure a consistent, informed, and merit-based decision-making process that is based upon the approved climate change scenarios set out in the guidelines.
Urban Heat Policy for Land Use Planning: a policy to encourage developments in urban zones to incorporate cooling measures to reduce community vulnerability to heatwaves. These measures include retaining native vegetation, integrating green infrastructure, using cool materials, and optimising passive design.
Further, the EIE notes that a new Ministerial Direction to complement the CC&NH SEPP is proposed to assist with addressing climate change and natural hazard risk in the context of strategic planning decisions, including at the rezoning or master planning stage of the planning process.
What is meant by “tolerable risk”?
DPHI recognises that planning for climate risk and natural hazards does not mean removing all risk. For this reason, it intended that the CC&NH SEPP would recognise that planning decisions need to accept a degree of “tolerable risk” in the development process from climate change and natural hazards.
The EIE defines tolerable risk as “…understanding the likely risks faced by a development so that the final planning decision reflects a balanced understanding of what is acceptable within the context of that decision”.
It is likely that “tolerable risk” will be interpreted through the lens of ecologically sustainable development and ensuring that new development is resilient to the impacts of climate change and natural hazards.
What are the practical implications for development?
The CC&NH SEPP would be most applicable to developments in areas particularly at risk of climate change and natural hazards – such as developments in coastal areas, bushfire prone land, and floodplains. However, as the impacts of climate change and the intensity and variability of natural hazards continue to grow, so will the need to consider climate risks in planning decisions.
Those seeking approval of developments would need to evaluate physical climate risks much earlier in the planning and strategic design phases. This will mean anticipating required design modifications. For instance, flood-related development controls and flood planning areas would reflect projected climate change impacts and may become more restrictive, which could require design measures to be implemented such as elevated minimum floor heights. Similarly, consent authorities may require taller residential buildings to be located outside projected coastal risk areas, and urban developments could face stricter tree canopy and permeability targets to combat urban heat.
What are the next steps?
Early engagement with DPHI in the consultation process will be critical to help shape how these reforms are implemented and how they interact with existing SEPPs and development assessment frameworks.
Consultation on the EIE for the CC&NH SEPP is open until 5pm on Monday 16 March 2026.
As part of the consultation, DPHI is also seeking feedback on the draft Climate Change Scenario Guidelines and Urban Heat Policy Statement.
Our Environment and Planning and Climate Change and Sustainability teams are tracking these developments closely. If you would like to discuss any aspect of the proposed CC&NH SEPP or its potential impact on project planning and approvals, please get in touch with our team.