ETS must be in climate policy mix: CCA

The Climate Change Authority says emissions trading must be among the tools the government uses to cut carbon emissions.

An emissions trading scheme needs to be part of a fresh look at policies to cut carbon pollution, the Climate Change Authority says.

The independent advisory body on Monday released the second draft of its report into climate policy options, ahead of the final report be released in June 2016.

The authority's acting chairman Stuart Allinson said emissions trading was an important part of the "policy toolkit" needed to meet Australia's target of reducing emissions to 26 to 28 per cent below 2005 levels by 2030.