NSW EPA has introduced its first climate change policy and action plan

Released today, the new policy will set the tone for the development of new cross-economy guidelines.

"This plan means for the first time in Australia, there will be a comprehensive approach around emissions reduction pathways," said NSW Department of Primary Industries which EPA chief executive officer Tony Chappel.

"Using our robust framework, we will treat greenhouse gas emissions like any other pollutant that we regulate and by doing so, support the decarbonisation, transformation and growth of the NSW economy."

The EPA has begun setting out the terms of reference with the NSW Department of Primary Industries which Mr Chappel says will be available for industry consultation "in the next month or so".

He said the biggest change would be around how the EPA engaged with stakeholders.

A focus for agriculture would be around working with the DPI to commence a reference group for agriculture and its value chain to identify gaps in processes and over time working towards lower emissions.

Aspects of the plan include air quality factors such as nitrous oxide emissions, but more broadly the plan also aims to "develop appropriate climate change mitigation and adaptation conditions for development approvals for activities we'll ultimately regulate", Mr Chappel said.

"You'll see us on the ground trying to take a catchment-based approach."

He said nitrogen had typically been considered a water pollutant, but "it's very much got a climate impact, as well".

In the initial 12-18 months, the focus would be higher level analysis of industries and supply chains to identify "the gaps" and what tools and support would be needed.

The plan will also see the progressive placement of greenhouse gas emission limits and other requirements on licences for key industry sectors.

The EPA currently licences about 50,000 businesses, but not all of which are emissions producing.

"But for those that do, there are things we'll be asking this year - how are they thinking about their emissions, how are they thinking about their resiliense in extreme climate events," Mr Chappel said.

Feedlots were one of these industries, in particular how well their design stood up to extreme flood events of the likes the state has recently experienced.

"When we look backwards at the one-in-100-year standard, that's no longer applicable," he said, referring to how design and engineering will likely require upgrades to contain waste in extreme events.

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He said this focus would be at the industrial-scale level, rather than the individual farm level.

He said it was likely more support was needed to assist the transition in existing practices and programs, similar to the government's $125 million of funds for new programs under the Primary Industries Productivity and Abatement Program.

"There are a lot of challenges, but this is where we're committed to working with the supply chain on solutions and working on innovation," Mr Chappel said.

"Our focus is on enabling and supporting best practice and building collaborative processes which ensure any actions taken by the EPA are meaningful, feasible and cost effective.

"To seriously combat climate change, we cannot do it alone and these groups will provide valuable information on gaps, risks and the opportunities that need to be solved or considered.

"They'll also help NSW capture the immense opportunities that come with a net-zero economy, such as growth in hydrogen, green steel and metals, green ammonia, clean energy, the circular economy and regenerative agriculture."

He said regenerative agriculture was "kind of the word of the moment, this idea we can improve productivity and the environment".

"What we want to do is think holistically around that and stand in the shoes of farmers."

He said while there was already a focus on carbon farming, this didn't provide enough in terms of improving on-gound measures.

"So to an extent, regenerative ag makes sense, that's an area we want to be supporting," Mr Chappel said.

"But we also need to maintain competiveness and market access as the world shifts into a set of lower carbon policy settings."

At the other end of the supply chain, food waste was already a large and growing focus.

"When we think about ag and food, we can't forget about the big role of the consumer," he said, refering to the opportunity to be captured in working with state and local governments to minimise the amount of food going to landfill.