Australia maintains one of the most effective regimes of environmental regulation in the world. The IMD World Competitiveness Yearbook 2008 ranked Australia sixth in the world for the extent to which local environmental laws do not hinder the competitiveness of businesses, and eighth in the world for not having pollution problems that affect the economy.

One of the main environmental health hazards to a city's population is exposure to air pollution from transport and industry. According to the 2008 Environmental Performance Index, Australia recorded concentrations of particle matter that were lower than countries such as Germany, the United States and Japan and Singapore.

Like Australia, Sydney's air quality is significantly better than in many other large cities. Concentrations of air pollutants in Sydney are considered to be low by world standards and meet official guidelines. Sydney's clean environment is attractive to those who work here, and the city combines the sophistication of a global business centre with a natural and unspoilt physical environment.

The strict air pollution regulations enforced in Sydney and New South Wales regional centres have contributing to the healthy lifestyle enjoyed by the State's residents. Helping to further promote a cleaner environment in Sydney is the New South Wales Government’s 25-year Air Quality Management Plan, Action for Air, which has led to improved regulation of industrial emissions and cleaner motor vehicles and fuels.