NSW has legislated a path to net-zero emissions including five-yearly targets and consideration of the impact on rural communities and animals.
The new laws, passed on Thursday with cross-parliament support, require the state to cut emissions by 50 per cent by 2030 and 70 per cent by 2035 on the way to net zero by 2050.
Interim targets for 2040 and 2045 will also need to be set by the government of the day while a new independent climate commission will monitor and advise on progress.
Five-yearly targets are a mechanism Victoria uses in its net-zero legislation.
The NSW bill also includes a guiding principle to ensure action aligns with the right to a clean, healthy and sustainable environment - a national first.
Almost every party left their mark on the bill through three dozen amendments, setting a great example for other parliaments to follow on collaborative climate action, the Climate Council said.
"Working together now to cut carbon pollution and keep communities safe from climate harm is sensible, responsible and economically smart," the council's Jennifer Rayner said.
"By setting a floor for cutting carbon pollution with a ratchet mechanism to strengthen action over time, NSW communities, businesses and investors can move forward with confidence."
Climate Change Minister Penny Sharpe said her state now had the framework to embark on the essential journey to net-zero emissions and resilience to climate change.
"(It) shows Labor can build consensus on what is right for NSW and deliver on its key election promises, despite holding minority government, she said.
The Greens secured changes to ensure targets could be ramped up and that the new Net Zero Commission could provide advice on coal and gas projects.
That took the law beyond "ornamental, unambitious targets" to genuinely help battle climate change, Greens MP Sue Higginson said.
Amendments from Animal Justice, independent Mark Latham and the coalition ensured action to address climate change considered the impact on animals, socially disadvantaged groups and communities in rural, regional and remote areas.
"It should be a key, fundamental principle for any of the government's net-zero policies that decisions do not lead to negative outcomes for people, industry and communities in the regions," Nationals MP Sarah Mitchell said.
Legalise Cannabis ensured future governments set 2040 and 2045 targets.
While modelling shows NSW on track to meet the 2030 and 2035 targets, emissions reduction is set to plateau in the early 2040s.
The Net Zero Commission which includes the chief scientist will report on the state's progress as well as recommend action from ministers, departments and the planning commission.
It will also be tasked with educating businesses, organisations and individuals on climate action.
The NSW bill passed mere hours before a federal climate commission revealed the nation was projected to miss its target to reduce emissions by 43 per cent by 2030.
South Australia and Victoria have legislated emission reduction targets.
Tasmania has already achieved net zero, primarily due to its hydropower and large forest estate.
