The New South Wales court of appeal has overturned the approval of the largest coalmine expansion in the state after a community environment group successfully argued the planning commission failed to consider the impact of all of the project’s greenhouse gas emissions.

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The court found the independent planning commission was required and failed to consider the impacts of all emissions associated with the project on the local environment, including from the exported emissions – known as scope 3 emissions – when the coal is sold and burnt overseas.

The commission approved the Mount Pleasant mine expansion in 2022. The project would double the mine’s coal output to 21m tonnes per annum until 2048 and 98% of the projected emissions are scope 3 emissions.

The Denman Aberdeen Muswellbrook Scone Healthy Environment Group (DAMS HEG) unsuccessfully appealed against the decision in the land and environment court last year but the court of appeal found in the group’s favour on Thursday morning.

Wendy Wales, the group’s president, welcomed the decision and said the burning of fossil fuels was causing increasingly destructive weather events globally, including in NSW.

“Our communities are enduring increasingly terrifying climate disasters, and nature is disappearing before our very eyes. Yet our governments are continuing to throw fuel on the fire by approving massive new coal projects like MACH Energy’s Mount Pleasant,” she said.

“It shouldn’t be up to a small community group like DAMS HEG to fight this global battle, but in the absence of meaningful government action to protect us from climate harm arising from coalmines, we felt we had no choice but to stand up for our children and grandchildren, the public interest, the rule of law and nature itself,” she said.

Too right!