The Northern Territory government has set a target of reaching net zero carbon emissions by 2050 in a plan that says responding to climate change is “responsible economic strategy”.

The NT’s Labor government’s draft climate change response says the territory will use its natural advantage in solar resources – “now the cheapest form of new electricity generation” – to transition away from fossil fuels.

Eva Lawler, the NT climate minister, said “climate change threatens everything that makes the territory lifestyle great” and governments needed to respond.

“Responding to climate change helps us protect the things we value the most — the things we can’t put a price on — and will create economic opportunities for territorians and territory businesses through the creation of new industries and local jobs,” she said.

State and territory governments are increasingly moving towards ambitious climate policies in the absence of effective national policy on climate change.

The prime minister, Scott Morrison, is in the US this week but won’t attend the UN climate summit in New York on 23 September. The foreign minister, Marise Payne, and the Australian ambassador for the environment, Patrick Suckling, are being deployed instead.

Countries have been asked to outline plans to achieve net zero emissions by 2050 but Australia has so far offered no new commitments beyond its 2030 targets.

This week the Australian Capital Territory government announced a far-reaching plan for the electrification of transport and homes as it moves toward a net zero emissions target by 2045.

The NT’s draft plan includes an aspirational target of net zero emissions by 2050 and says a 10GW renewable energy roll-out in the NT by 2030 could create more than 8,000 jobs and bring $2bn in revenue.

The plan says the territory could gain additional export revenue if the minerals sector focuses on the minerals required for production of renewable technologies.

The document also says that as electric vehicles move closer to cost parity with petrol and diesel in coming years, “the average NT household could reduce vehicle running costs from $3,398 per year to $672 per year – an 80% saving”.

Much of the data in the draft plan is based on a report by Beyond Zero Emissions, which said renewable energy could be put at the centre of a sustainable NT economy, creating jobs and driving new export opportunities.

“The Northern Territory government has shown we can really power our economy with renewables and it’s not costly, it’s actually an opportunity,” said BZE’s chair, Eytan Lenko.

This year the territory government lifted a three-year ban on fracking for onshore gas exploration in the Beetaloo basin. Climate scientists have warned opening the basin will massively drive up carbon emissions.

In its draft climate response, the NT government said it will develop climate change risk response strategies for government services and assets in climate-sensitive sectors. It said it climate risk would be considered “across government decision-making”.

“A climate change response is a responsible economic strategy,” the plan says. “It recognises that as Australia and the world transition to a low-carbon economy and respond to climate risk, those that don’t will be left behind.”

