The decision by the NSW government to forge ahead with an expedited timeline to slash emissions by 2050 has heaped pressure on the federal government which is split on the issue.
The NSW government announced on Wednesday cabinet had agreed to cut greenhouse gas emissions by 50 per cent on 2005 levels by 2030, on its way to its own 2050 net-zero target.
It's an upgrade on its previous greenhouse gas emission reduction target from 35 per cent to 50 per cent reduction by 2030.
The federal government is considering adopting a national net-zero target ahead of a major climate summit in Glasgow this year but is facing internal opposition from Nationals concerned about regional impacts.
NSW Liberal Energy Minister Matt Kean is confident his state will "smash" its new 2030 target, which is supported by NSW Nationals leader John Barilaro.
The move has been widely applauded by business and environmental groups.
Business NSW CEO Daniel Hunter said if the plan delivers on its promise to cut energy bills for businesses it would be "a significant achievement".
"It is more important than ever that the Commonwealth government follow suit," he said.
NSW Farmers said the plan was welcome news for farmers looking to innovate and grow their businesses but they had concerns about the placement of large-scale renewable energy and transmission installations.
"We must ensure it does not displace food and fibre from quality land," NSW Farmers Vice president Xavier Martin said.
The Australian Conservation Foundation said "all eyes now turn to the prime minister".
The Climate Council said Australia has everything needed to prosper in a global net zero economy.
Mr Kean said NSW had "big bold policies" to reach net-zero by 2050 that will create thousands of jobs, he says.
The federal government, meanwhile, is "not being ambitious enough".
"We need a net-zero commitment, at least, by the federal government," Mr Kean told ABC radio.
"My message to the commonwealth is, get on with it. This is not only the right thing to do it is also the economically rational thing to do."
He rejected arguments by some federal Nationals that reducing Australia's carbon footprint will hurt the regions economically, particularly in coal.
"It's a false argument. It's not one or the other - you can do both," he said.
"We're putting in place policies that will reduce our emissions but turbocharge our economy."
Prime Minister Scott Morrison should go to the United Nations climate summit and persuade the world to take greater action on climate change.
"We should lead the world when it comes to taking action on climate change rather than sitting back and waiting for the world to persuade us to lead in this area," Mr Kean added.
"This is the biggest economic opportunity of a lifetime and we need to grab it with both hands to ensure we set ourselves up for a more prosperous future."
Premier Gladys Berejiklian said the 2030 target would help the world decarbonise and shore up the NSW economy.
"Our Net Zero Plan is expected to attract more than $37 billion in private sector investment into NSW, support more than 9000 jobs, save households about $130 on their electricity bills and help NSW become Australia's first trillion-dollar state by 2030," she said.
Mr Barilaro said NSW regional communities would reap the rewards of emerging industries.
"Whether it is in modern manufacturing, minerals or agriculture, regional NSW is home to the skills, infrastructure and resources needed as the demand for low emissions technologies like batteries and hydrogen grows," he said.
Australian Associated Press
