The programme is expected to support the development of new low carbon technologies, create centres of research and help existing industries future-proof their operations.
Around AUD$380 million (£210m) will support existing industries to re-tool with low emissions alternatives.
A total of AUD$175 million (£96m) is expected to set up low carbon industries such as green hydrogen while a share of AUD$195 million (£107m) will finance research and development of new clean technologies.
Chris Kean, Energy Minister, said: “Almost 30% of our state’s carbon emissions are created by our top 55 industrial facilities, which are critical contributors to the NSW economy.
“Supporting their move to cleaner equipment, technology and processes will significantly reduce emissions, while helping to protect jobs and maintain a resilient economy.”