In statement, Energy and Environment Minister Matt Kean said Mr Turnbull would be replaced as chair of the NSW Net Zero Emissions and Clean Economy Board because the position “should be not based on personality”.
NSW Chief Scientist and engineer Hugh Durrant-Whyte will act in the role until a new chair is appointed.
Mr Turnbull’s position on the board had been heavily criticised by some Liberal and National MPs in recent days after the former PM backed a moratorium on new coal mines in NSW.
Mr Turnbull’s appointment to the five-year role a week ago was approved by the Berejiklian government cabinet.
Mr Kean said the purpose of the Net Zero Emissions and Clean Economy Board was to create jobs in low carbon industries and see the state reduce its emissions in ways that grew the economy.
“It is important that the focus is on achieving these outcomes, based on facts, technology, science, and economics. The focus should not be on personality,” he said.
“Malcolm Turnbull AC has contributed much to our country and I know will contribute more into the future.
“However, no person’s role on the board should distract from achieving results for the NSW people or from the government’s work in delivering jobs and opportunities for the people of NSW.”
Premier Gladys Berejiklian said she was “incredibly fond” of Mr Turnbull but accepted Mr Kean’s position his appointment was proving to be a distraction.
“I want to stress for me personally it doesn’t take away from the admiration and respect I have for Malcolm Turnbull,” Ms Berejiklian said.
“I admire him enormously. He’s a man of great intellect, a man who will continue to contribute to public commentary.
“I want to thank him for all he has done for our nation.”
The premier did not directly answer questions from reporters about whether Mr Turnbull’s sacking has anything to do with an upcoming by-election in the Hunter region which could threaten her government’s majority in the lower house.