The NSW Department of Planning and Environment will be split into two new entities,  with one focusing on climate change and energy, and the second responsible for housing and infrastructure.

Premier Chris Minns announced the changes on Friday, saying they will better position the government to tackle two priority areas.

From January next year, DPE will be reassembled as the Department of Climate Change, Energy, the Environment and Water (DCCEEW); and The Department of Planning, Housing and Infrastructure (DPHI).

The Office or Energy and Climate Change, which is currently in Treasury will go over to the two new departments.

Ministerial portfolios won’t change.

Mr Minns says DCCEEW will bring the government’s collective environmental expertise into one place.

“It’s clear that we need to align our agencies with the most important issues facing our communities.

“That’s precisely what this change is designed to achieve,” he  said in a statement.

Planning and public spaces minister Paul Scully said the departmental changes would hone the focus on housing delivery.

“I look forward to the new approach and fresh ideas that will be generated by bringing together the best minds and expertise in the public sector,” he said.