Planning alert - Climate Change & Natural Hazards: a new SEPP

On 17 February 2026, the NSW Government commenced the exhibition of a new Climate Change and Natural Hazards State Environmental Planning Policy (new SEPP), intended to replace the existing Resilience and Hazards State Environmental Planning Policy.

This new SEPP seeks to further embed consideration of the impacts of climate change and natural hazards into environmental planning and decision making following the Planning System Reform Bill 2025, which added climate change resilience, housing delivery and proportionality to the objects of the Environmental Planning and Assessment Act 1979.

The Department of Planning, Housing and Infrastructure has published an Explanation of Intended Effect (EIE) of the new SEPP, which insists that the new SEPP will create a synthesised, risk-based approach to climate change and natural hazard management by consolidating provisions in existing environmental planning instruments (EPI) regarding climate change, bushfires, flooding, coastal erosion, urban heat, and rebuilding following natural hazards under one EPI.

Additionally, the new SEPP will be accompanied by a number of new policies including Climate Change Scenario Guidelines and the NSW Urban Heat Policy for Land Use Planning (Urban Heat Policy). The new SEPP is currently being exhibited through the EIE, and the Government is accepting feedback on the new SEPP and related policies.

From our review of the EIE, the most significant change to be brought about by the new SEPP (going beyond the mere consolidation of existing provisions) is the introduction of the Urban Heat Policy.   Councils must also have particular regard to the extent and effect of urban heat impacts and any mitigating design measures in their assessment of development applications in urban land use zones. The new provisions are intended to ’ensure that development considers urban heat, contributes to the local environment and supports community health and wellbeing’.[1]

The supporting Urban Heat Policy seeks to apply these principles, requiring proponents to:

1. Consider the urban heat context of the land use planning decision or proposed development
2. Incorporate planning and design measures in development to support community adaptation to increased heat
3. Design buildings and public spaces to support wellbeing during heatwaves and hot days[2]

The new SEPP and supporting policies are on exhibition until16 March 2026. The Government is seeking feedback on whether the introduction of more stringent consideration of urban heat under the Urban Heat Policy is supported, and how the new provisions and policies should be designed to accommodate local contexts and climate zones.

Any questions or concerns please contact one of our team members.

[1] Climate Change and Natural Hazards State Environmental Planning Policy

[2] Urban Heat Policy for Land Use Planning – Draft for consultation