The Sydney Basin contains the largest concentration of industrial stationary CO2 emission sources in Australia. However, no actual sites for CO2 geological storage have been identified to date. The Sydney Basin comprises an up to 6,000 m thick succession of mainly Permo-Triassic clastic sediments with large coal resources and an emerging coalbed methane industry. Coal seams are an attractive target for CO2 sequestration in the Sydney Basin due to their proximity to power plants and their potential for enhanced coalbed methane production (ECBM). However, the impact on existing coal resources and containment of the injected CO2 at relatively shallow depth might prove to be a liability. Geological storage in deep saline aquifers may provide a lower-risk alternative.