Deanna "Violet" Maree Coco was placed on what amounts to a 12-month good-behaviour bond on Wednesday after a District Court judge overturned the jail term set by a lower court.
The 32-year-old and three others parked a truck on the Harbour Bridge in morning peak traffic in April 2022, as part of an environmental protest against climate inaction.
While prosecutors argued jail was appropriate, Judge Mark Williams noted Ms Coco was remorseful and was now channelling her diagnosed climate anxiety into productive community work.
He also noted the original sentence, imposed after Ms Coco pleaded guilty, was partly based on a false police assertion that the protest impeded an ambulance on its way to an emergency.
Coco, 32, served 13 days in custody before being bailed, pending appeal.
She was among the first people charged after the NSW parliament hiked penalties and expanded the reach of laws targeting those who block traffic on major routes.
Premier Dominic Perrottet said he wasn't aware of the court's decision until questioned on Thursday and would seek advice on the specifics.
"But I'll make this point - there's no place in our state for that type of behaviour," he told reporters on Thursday.
"If you want to protest in NSW, you're free to protest. But when you protest, you do not inconvenience people across NSW.
"That's exactly what occurred in that situation."
Labor leader Chris Minns also didn't resile from the action parliament took last year, saying he'd keep the increased penalties in place if he won government on March 25.
During some of the March and April 2022 protests, 250,000 cars weren't able to get to work, home or around Sydney. Emergency services were also unable to get to emergencies, he said.
The protesters weren't willing to negotiate and appeared to be willing to cause as much chaos and disruption as often as possible.
"They were knocking out half of Sydney," Mr Minns said.
"I thought it was undermining community confidence in support for action on climate change."
The Greens say they will not support a Labor minority government without an agreement to repeal the laws it considers anti-protest and undemocratic.
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