# Australian coal power emissions policy developments > Live situation record from CLSTR: https://clstr.news/situations/australian-coal-power-emissions-policy-developments > Updated: 2026-09-28T03:57:06.000Z. Sources: 4. Developments: 2. The Australian coal-fired power sector is facing potential regulatory changes regarding emissions and operational longevity. The Smart Energy Council has proposed that coal stations, such as the Eraring Power Station, be required to pay carbon costs if they operate beyond agreed closure dates. Under this plan, stations would lose pollution allowances and must use Australian Carbon Credit Units to account for all emissions under the Safeguard Mechanism. Building on these discussions, a proposed review of the federal government’s Safeguard Mechanism for 2026–27 aims to remove the electricity generation sector’s long-standing exemption. This would require individual facilities to comply with declining emissions baselines by purchasing Australian Carbon Credit Units (ACCUs) or Safeguard Mechanism Credits (SMCs) to offset excess emissions. Climate Change and Energy Minister Chris Bowen has cited the unreliability of aging coal plants and frequent unplanned outages as reasons for the transition toward renewable energy. Conversely, critics have raised concerns regarding gas supply insecurity, the rising costs of wind power, and the need for firm, dispatchable power to maintain grid reliability. ## Timeline ### 2026-09-28: Australia coal power sector faces potential emissions policy shift Australia's coal power sector faces potential removal of emissions exemptions under the Safeguard Mechanism, amid government criticism of aging plant reliability and debates over grid stability. 2 sources. https://clstr.news/cluster/australia-coal-power-sector-faces-potential-emissions-policy-shift ### 2026-09-08: Smart Energy Council proposes carbon costs for extended coal operations The Smart Energy Council proposes that coal-fired power stations must pay for emissions via the Safeguard Mechanism if they operate past their scheduled closure dates. 2 sources. https://clstr.news/cluster/smart-energy-council-proposes-carbon-costs-for-extended-coal-operations --- Cite as: Australian coal power emissions policy developments. CLSTR, https://clstr.news/situations/australian-coal-power-emissions-policy-developments