A NSW Transition Authority with an annual budget of $500million would be established to assist coal-dependent communities transform themselves if the Greens gain the balance of power in next month's state election.
A progressive coal royalty system, which is estimated would earn the State Government an extra $8billion a year, would be introduced to fund the authority.
New coal and gas projects, including Santos' Narrabri Gas project, would also be banned and existing projects would be phased out by 2030 under the broad-ranging policy to be launched in Newcastle on Monday.
"The workers and communities in coal reliant communities here in the Hunter and across the state are no fools, and they can tell that the Liberal and Labor parties are lying to them, saying coal can keep going for decades when it clearly can't and shouldn't," Greens spokeswoman for treasury and energy Abigail Boyd said.
"Only the Greens are willing to embrace the reality of the situation, and commit to working hand in hand with communities to acknowledge the change and seize the opportunity it presents - to deliver a brighter, diversified future for the Hunter Region."
Ms Boyd said the scheme would help redirect some of the "extreme super-profits" being made by fossil fuel companies into education, housing, health and climate adaptation and energy transition efforts across the state.
"NSW coal royalties are extremely low in comparison to other jurisdictions, both domestically and internationally," she said.
"The argument that a higher royalty rate would be damaging to businesses and jobs is demonstrably untrue.
"The people of NSW aren't getting a fair deal."
The proposed NSW Energy Transition Authority would oversee the transition away from fossil fuels at a state level, however, it would have region-specific authorities to coordinate the diversification of local economies.
Similar authorities composed of workers, councils and community representatives have been effective in assisting communities in Victoria's LaTrobe Valley and Germany's Ruhr region adjust their social and economic foundations following the closure of coal industries. The Greens are the only party in NSW to promote such a model to date.
The Greens policy would support the establishment of a TAFE New Industries Training Centre in the Hunter to reskill and upskill workers and ensure all impacted workers across the state have access to relevant training.
"There is no doubt that the closure of coal mines and coal-fired power stations will hit the Hunter hard. We must have a plan to ensure that these communities, who have long helped to keep the lights on across our state, are not left behind as we transition to a decarbonised economy," Ms Boyd said.
"As well as providing certainty for workers over when these power stations will close, our plan includes training and financial support for workers and a commitment to invest in new industries across Newcastle and the Hunter."
This includes the creation of new businesses and jobs around a requirement for best practice clean-up of mines and power station sites and the installation of international-standard pollution-control technology on power station stacks.
The policy cites the example of coal-ash recycling. Despite accounting for nearly one-fifth of Australia's waste stream and being suitable for many construction products, very little coal ash is recycled in NSW.
The Greens propose to facilitate the establishment of a coal-ash reuse industry on and around the Liddell and Bayswater power station sites, which they say would provide hundreds of skilled jobs.
The Hunter would also become a hub for electric bus and train manufacturing.
"The NSW Liberal-National Government has made error after error when it comes to procuring trains from overseas. The Greens will invest in re-establishing the train manufacturing industry in Newcastle, and keep it in public hands," the policy says.
The Greens' policy includes a plan to 'unpick' the privatisation of NSW ports, which it says will support the diversification of Newcastle and Hunter's economy as it moves away from coal.
