The electricity sector may have to cut emissions by at least 45 per cent on 2005 levels by 2030 if Australia is to meet its reductions targets.
Australia's electricity system will need to cut emissions much faster if the country is to meet its reductions targets by 2030, a new report says.
An analysis by ClimateWorks, published on Wednesday, found a reduction of 26-28 per cent - as modelled by chief scientist Alan Finkel - was not enough.
And the sector was well-placed to slash emissions beyond its proportionate share, head of research Amandine Denis-Ryan said in a statement.
"Our research shows Australia's electricity sector can cut emissions by 60 per cent below 2005 levels by 2030, which would allow Australia to achieve its current 2030 target without additional action in other sectors," she said.
If it were able to achieve just under half of its technical potential, it would reduce the abatement required by other - more costly - sectors in the economy.
The report argued the electricity system could still reduce emissions while delivering on affordability and reliability requirements.
If Australia was to deliver net zero emissions by 2050 in line with the Paris Agreement, the sector will need to be 45-60 per cent below 2005 levels by 2030.
ClimateWorks, founded by The Myer Foundation and Monash University, has recommended the federal government set a national goal of net zero emissions by 2050 - as already pledged by South Australia, the ACT, Victoria, NSW, Tasmania and Queensland.