By Duncan Murray and Luke Costin in Sydney

PROTESTERS have sipped tea as they blockaded the world’s largest coal port over what they say is the failure of government to act on climate change.

Groups of 50 to 60 protesters took turns paddling out into Newcastle Port’s shipping lane overnight to continue a 30-hour blockage.

“Pancakes were being made, tea drunk, dolphins swam nearby and people watched the sunset and sunrise,” local organiser Alexa Stuart told AAP on Sunday.

“Those involved say it was a magical experience.”

The group behind the protest, Rising Tide, claims over half a million tonnes of coal will have been prevented from leaving the port by the time the action ends at 4pm on Sunday.

Protesters are demanding the government stop allowing new coal projects, tax fossil fuel export profits at 75 per cent to fund community and industrial transition, and pay for climate loss and damage.

Rising Tide says safety was paramount as the protesters spent the night on the water, rostered in two-hour shifts.

Police granted permission for the protest to take place following several months of negotiations, the organisers said.

The action has won the support of senior members of the Greens and former federal leader Bob Brown.

Federal Greens leader Adam Bandt, who kayaked out with protesters on Saturday, called those taking part heroes.

“They’re fighting to stop more floods and bushfires in this country,” Mr Bandt said.

“People here know that we’re nearing a climate tipping point, and that coal and gas are fuelling the climate crisis.”

But NSW Minerals Council CEO Stephen Galilee said that while everyone had the right to protest, protest leaders had to ensure those participating did it safely and within the law.

He said stopping NSW coal exports would have a major impact on the NSW economy, given the industry supports 25,000 jobs.

“Coal is NSW’s most valuable export by far, and worth more than $70 billion nationally,” he said.

Coal royalties are a key revenue source for the NSW government, earning about $3.5 billion in the year to June 2022.

From July, the state’s cut of coal sales will rise by 2.6 percentage points, raising an extra $2.3 billion over the first three years.