City of Newcastle will need to spend an extra $42 million over the next five years to achieve its goal of net zero emissions by 2030.
Councillors have committed to an ambitious plan to maintain a 100 per cent renewable electricity supply, expand its battery network and switch its vehicles and equipment to electric or low-emission alternatives.
At least half of the $42 million the council needs will be sought through state and federal grants, commercial partnerships and "other" funding sources.
The council's environment and sustainability executive manager Marnie Kikken said pulling off the plan, which includes 77 actions, will require rapid, transformative change.
"If the Climate Action Plan can be fully implemented, it's estimated City of Newcastle would see a return of between $3.5 million to $4 million per year from 2030 thanks to revenue from the Community Energy Precinct, savings from solar and battery energy storage systems, fuel savings and gas to electric savings," she said.
"The plan not only outlines City of Newcastle's pathway to net zero emissions by 2030, but also supports a Newcastle-wide transition to net zero by 2040, in alignment with the goals of the Paris Agreement.
"The Climate Action Plan adopts a holistic approach to addressing climate change with a focus on creating flourishing lives for all Novocastrians. Climate action is not only about reducing emissions and managing risks, but also about supporting a healthy, resilient, inclusive and liveable city."
Earlier this month, the council received $5 million from the Australian Renewable Energy Agency to help deliver one of the largest local-government-led energy storage initiatives in the region.
In total, almost $12 million will be invested in a network of community batteries across the city designed to reduce pressure on household power bills and enable better use of rooftop solar.
The council's climate action plan is backed by economic modelling, scientific research, cost-benefit analysis and community consultation.
At the June council meeting, Labor councillor Declan Clausen said one of his initial concerns was that the plan could be seen as council giving a "blank cheque" for a significant investment.
"I was really pleased to see that feedback reflected in the plan, the acknowledgement that each of the investments that we might take from this plan still need to go through a business case process, they still need to come back to us as an elected council to ensure that they are prudent investments, and that we need to seek out opportunities to partner with other levels of government to bring in additional funding to further some of these initiatives," Cr Clausen said.
Greens councillor Joel Pringle said climate action needed to address the "emotional, mental and physical" impacts of climate change.
"One of my favourite quotes is that action is the best antidote to despair, and this plan is packed full of meaningful, ambitious, but thoughtful action," Cr Pringle said.
Public feedback showed more than 70 per cent of respondents agreed with targets laid out in the plan.
Ms Kikken said a total of 239 submissions were received during public exhibition, with almost 80 per cent of people agreeing climate action was a high priority, and 83 per cent supportive of nature-based solutions such as tree planting and ecosystem restoration.
"Our community needs to see the Climate Action Plan as credible and deliverable so we've made amendments to the plan based on their feedback," Ms Kikken said.
"City of Newcastle is also conducting a feasibility study for a Community Energy Precinct at the Astra Street landfill site at Sandgate, which was supported by the community."
The 60-hectare landfill site was in operation from 1974 to 1995 before the council started environmental remediation to safeguard the water quality of the nearby wetlands, increase biodiversity and promote native plant growth.
The proposed Astra Street Community Energy Precinct brings together several community priorities including renewable energy, electric vehicle infrastructure and smart repurposing of underutilised land.
