The Upper House committee, which was investigating the impact of the Western Harbour Tunnel and Beaches Link, delivered its findings on Monday.
It found in the case of Beaches Link there had been inadequate explanation of the costs and benefits to the community.
"The committee recommends the government not proceed with Beaches Link,"Â Committee chair, Labor MP Daniel Mookhey said.
Concerns were also raised over the Western Harbour Tunnel for which site preparations have already began.
The aim of the projects is to connect motorists directly from the Northern Beaches at Balgowlah to Rozelle in the Inner West.
Various issues were raised in the report, including that the government had failed to consider public transport options and that procurement processes had already created delays and extra costs.
Recommendations were made regarding transparency and impact on air and water quality, taking into account the considerable impact the tunnels would have on communities in the Inner West, Lower North Shore and Northern Beaches.
Of 575 public submissions received by the committee the overwhelming majority were opposed to the projects.
"These are large projects, with large price tags, and significant impact on communities they interact with," Mr Mookhey said.
"The committee makes various recommendations to improve transparency around the projects, noting the importance of properly informing the public ahead of the March 2023 election."
Metropolitan Roads Minister Natalie Ward has been contacted for comment.
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