As well as plans to overhaul the public transportation system, the Sustainable Sydney 2030 proposes to develop ‘green transformers' - power plants that convert waste to low-carbon energy and produce recycled water.
These systems could be installed in a number of configurations in urban renewal areas and existing residential and commercial areas.
Sydney Lord Mayor Clover Moore said the Sustainable Sydney 2030 is the result of a community consultation program carried out over the past 12 months, including feedback from 30 community forums, round-table discussions and business forums.
"The people of Sydney have spoken…They want a city that is green, global and connected," Moore said.
The draft plan will be considered by Sydney City Council on April 7 for public exhibition from April 17.