Ahead of the release of the 2020-21 state budget this afternoon, Mr Gutwein told parliament today that 100 per cent of the state-owned vehicle fleet would be electric by 2030.

He said the 10-year transition would save about $2 million in maintenance costs and about $6 million in fuel costs, based on current technologies and trends.

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"As the availability and range of electric vehicles continues to increase we'll increase our purchases to reach our target," the Premier said.

"And we will begin ... to transition the ministerial vehicle fleet as well to include full hybrid vehicles over the next two years. And I'm pleased to note that we will receive the first of these by the end of the year."

"Our ambitious target will be underpinned by a Tasmanian government 100 per cent EV zero emission strategy, which will also include interim actions to improve efficiencies as we transition."

Furthermore, the government's uptake of electric vehicles would serve to create a second-hand electric vehicle market in Tasmania, according to Mr Gutwein.

"This will help to bring down the cost for the community as well," he said.

Meanwhile, the Premier also announced that Metro Tasmania had been asked to trial zero emissions buses powered by electric hydrogen.

He said trials would occur in both Northern and Southern Tasmania within the next two years.

"As we rebuild a stronger Tasmania together, it's important that we continue to innovate, that we continue to invest in new technologies and continue transitioning to a low emissions economy," Mr Gutwein said.

Greens climate change spokeswoman Rosalie Woodruff welcomed the move, saying she was pleased the government was adopting Greens policy.

"Electrifying the government car fleet has been our policy for five years, and has been ready to adopt every budget since," Dr Woodruff said. "While it's taken them more than half a decade, we're glad the Liberals got there in the end."

On Tuesday, government legislation to mandate a doubling of the state's renewable energy generation to 200 per cent by 2040 passed the House of Assembly.

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