Hundreds of climate protesters paddled out in kayaks near the Port of Newcastle in the coal-rich NSW Hunter region, with police setting up buoys in an attempt to contain them.
Midnight Oil frontman and former environment minister Peter Garrett and musicians including John Butler and Angie McMahon are slated to perform on Saturday as part of an associated festival.
Court challenges that eventually allowed the event to proceed previously heard some protesters might seek to be arrested to attract publicity.
A similar event in 2023 resulted in 109 arrests when protesters remained in the water beyond the advised period, attracting global attention.
More than 300 people entered the water and began paddling out just after 11am on Friday on day one of the planned three-day blockade.
Climate activists want a tax on coal and gas exports to help fund the clean energy transition. (Michael Gorton/AAP PHOTOS)
NSW Police said they had adopted a "zero-tolerance approach to actions which threaten public safety and the safe passage of vessels".
Event organiser Rising Tide wants an end to new coal and gas approvals and a 78 per cent tax on coal and gas exports to help fund the clean energy transition.
Attempts to prevent the protest were designed to stop attention being focused on ongoing support for fossil fuels, Rising Tide organiser Zack Schofield said.
Climate activists are protesting coal exports at Nobbys Beach in Newcastle. (Michael Gorton/AAP PHOTOS)
"If the government doesn't want people to protest it needs to stop adding fuel to the fire and stop approving new coal and gas and support Hunter coal workers in the transition to a clean energy future," he said.
The Greens will use the event to announce activist and law student Luc Velez as the party's candidate to take on Environment Minister Tanya Plibersek in Sydney at a federal election due by May.
"We've watched Labor, including our local member ... approve 28 coal and gas projects," he said.