Australia 'could cut quarter of emissions'

Analysis by the non-profit group ClimateWorks suggests Australia could cut its emissions by 25 per cent at a annual cost of $185 per household.

ClimateWorks executive director Anna Skarbek says existing technologies could be used to reduce emissions by 25 per cent below 2000 levels.

"You can achieve about one-fifth of that reduction today as an investor and still save money," she told ABC radio.

"But to achieve the other four-fifths, you would need to make them economic and we suggested a broad-based carbon price is a very good way to do that."

Climate Change Minister Penny Wong says the study, to be released on Tuesday, proves the government is right to advocate an emissions trading scheme.

"I hope Mr Abbott and the opposition will see that this report makes it clear that a carbon price as well as other practical measures are critical to achieving emissions reductions in Australia," Senator Wong told ABC radio.

But the opposition's climate action spokesman, Greg Hunt, said the analysis actually revealed the importance of direct action,
which his side of politics is pushing.

"It is a valuable form of recognition of precisely the type of things that we're putting forward," Mr Hunt said.

But Ms Skarbek says direct action alone won't cut the mustard.

"Without a carbon price, our analysis shows, by 2020 emissions would continue to rise."