Expanding Sydney’s Tree Canopy Could Save $1 Billion in Health Costs

by Chief Editor

Sydney could save $1 billion annually in health sector costs by expanding urban tree canopy and green infrastructure, according to a report from the Committee for Sydney. The think tank argues that integrating nature into high-density housing developments—a concept dubbed “breathable density”—is essential to mitigating urban heat island effects as the city’s population grows.

The Economic Case for Urban Greening

The financial argument for tree planting is rooted in public health outcomes. A University of Sydney study found that residents with greater access to tree canopy are less likely to require hospitalization for cardiovascular disease, leading to substantial savings for the state’s health budget. These health-related gains complement findings from a previous Committee for Sydney report, which estimated that heatwaves currently cost Western Sydney $1.4 billion in productivity losses, healthcare expenses, and household cooling bills.

“Billions of dollars are on the line if we don’t get this right,” said Estelle Grech, policy lead at the Committee for Sydney. Ms. Grech emphasized that while the city must increase housing density to accommodate a growing population, doing so effectively requires a strategic investment in cooling infrastructure.

Did you know? Greater Sydney’s current tree canopy cover sits at 21.7 per cent, significantly lower than the NSW government’s 2036 target of 40 per cent.

Addressing the Geographic Canopy Gap

Data from the NSW government reveals a stark disparity in how urban greenery is distributed across the city. While northern precincts such as Hornsby, Roseville, and Lindfield enjoy canopy coverage exceeding 30 per cent, western suburbs like St Marys and Lidcombe often fall below the 10 per cent threshold.

“Where you live really determines whether you have access to a good public space, good tree canopy or access to water,” Ms. Grech noted. This inequality is a primary focus of the committee’s proposal, which suggests that future Transit Oriented Development (TOD) plans—aimed at increasing density near train stations—must prioritize equitable greening to ensure that residents in all parts of Sydney benefit from reduced ambient temperatures.

Greenways as Low-Hanging Fruit

To bridge the canopy gap, the Committee for Sydney is advocating for a network of “greenways” that utilize underused, publicly owned land. By planting trees alongside existing water infrastructure, the city could create connected corridors that serve both environmental and recreational purposes.

One proposed route would link the Prospect Reservoir to the Cooks River, while another would connect the Parramatta River to the Georges via Duck River and Salt Pan Creek. Because this land is primarily held by councils and Sydney Water, proponents argue these projects represent “low-hanging fruit” for rapid implementation.

Government Action on Green Infrastructure

The NSW government has begun taking steps to streamline the management of these spaces. Last week, the Minns Labor government established the Blue Green Grid Committee to coordinate various agencies responsible for parklands and waterways. Additionally, the government announced the transfer of 28 hectares of land along the Duck River Corridor to Cumberland City Council to ensure it remains protected open space.

NSW Planning Minister Paul Scully stated that the Duck River transfer is a practical step toward treating the area as a cohesive network rather than a series of disconnected parcels. Earlier this year, the state government also allocated $35.1 million across 131 greening projects throughout Greater Sydney to support these broader goals.

Pro Tip: Check your local council’s urban forest strategy to see if there are upcoming tree-planting initiatives in your suburb.

Frequently Asked Questions

Why is tree canopy important for urban health?

Trees reduce the urban heat island effect, which lowers the risk of heat-related illnesses and cardiovascular issues. Access to green space is also linked to improved mental health outcomes.

What is “breathable density”?

This term refers to the practice of integrating significant tree canopy and green space into high-density housing developments, ensuring that increased population density does not result in a hotter, less liveable environment.

How does the government plan to increase canopy cover?

The NSW government has set a target of 40 per cent canopy cover by 2036. Current efforts include funding local greening projects and establishing the Blue Green Grid Committee to coordinate the planning of connected green networks.


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