"That is where Australia can have the biggest impact on reducing global emissions."
Finance Minister Mathias Cormann said coal still had a future in Australia but renewable energy supplies would continue to grow.
"We're assessing what is both environmentally appropriate and economically responsible," Senator Cormann said.
"We will continue to make our judgements based on Australia's national interests."
Nationals MP Michelle Landry said Australia needed cheap, reliable power for the manufacturing sector.
"That's what this (strategy) is about," Ms Landry told reporters.
"What does annoy me is that there are people in Melbourne who are dead against coal, but where does the power come from?"
Inner-city Liberals are agitating for more government action on climate change.
But former resources minister Matt Canavan is ramping up calls for a new coal-fired power station in Queensland
Senator Canavan described renewable energy providers as dole bludgers.
"Renewables are the dole bludgers of the energy system, they only turn up to work when they want to," he wrote in an opinion piece for the Courier-Mail.
Independent MP Zali Steggall is preparing to release details of her private member's bill to MPs and interest groups.
Ms Steggall wants to establish an independent climate change commission.
"It is time to take the party politics out of climate policy," she said.
"Now is the time for a rational approach to climate change."
One Nation leader Pauline Hanson said the prime minister was a fool for pursuing a net-zero target.
"Let's base it on science, lets base it on fact before we head down this path," Senator Hanson said.