CHRIS UHLMANN: A Labor-dominated Senate inquiry into the Federal Government's plan to tackle climate change has found there's considerable doubt that it will work.

The Government rejects the report's findings and the Labor Senator who chaired the inquiry wants her own party to embrace a recommendation that would triple its emissions reduction pledge.

Simon Lauder reports from Canberra.

SIMON LAUDER: The Environment and Communications Committee report says considerable detail is lacking about the design of the Emissions Reduction Fund, which is the centrepiece of the Coalition's Direct Action policy. It says it's a significant step backwards for climate policy in Australia.

Greens Senator Christine Milne:

CHRISTINE MILNE: Direct action is not supported by economists, can't be scaled up. In fact, it's an embarrassing joke.

SIMON LAUDER: Of course these committees are highly political. What do you say to the suggestion that that's all this is, just politics playing out here?

CHRISTINE MILNE: I'd urge people to read the report. The department could not say, when they were asked, will you be able to guarantee there'll be a 5 per cent emissions reduction. And it fell back all the time to we're waiting for the Government to tell us what the policy detail might be.

GREG HUNT: This was written by Labor and Green senators. Of course they're going to be running a whitewash of their own policy.

SIMON LAUDER: The Minister for the Environment Greg Hunt says more details will be revealed in the budget.

GREG HUNT: We've already released a green paper of over 70 pages and we have a white paper coming within the next few weeks which sets out the definitive positions. But the elements of the approach are well established and that is a reverse auction rather than a tax; we're focusing on doing real things to clean up waste coal mine gas, waste landfill gas, to clean up power stations, encourage energy efficiency, to capture carbon in soil and vegetation...

SIMON LAUDER: And funding for direct action will be capped regardless of whether the emissions reductions targets have been achieved?

GREG HUNT: Well, we'll achieve our targets but we've always said that it's a capped funding program.

SIMON LAUDER: The Senate Committee recommends Australia aim to reduce emissions by 15 per cent by 2020, as recommended recently by the Government's Climate Change Authority.

The chair of the committee Labor Senator Lin Thorp says she endorses its recommendations.

LIN THORP: Absolutely.

SIMON LAUDER: So you would like to see both sides of politics including your own party triple those targets?

LIN THORP: Absolutely.

SIMON LAUDER: But Labor's environment spokesman Mark Butler says it's more important for the Government to respond.

MARK BUTLER: The Government is required by law to make a response to the Climate Change Authority recommendation.

SIMON LAUDER: And on Labor Party policy for an emissions reduction target, when will you make a decision?

MARK BUTLER: Well, we'll make it in due course. We're the Opposition. It's the Government's responsibility.

CHRIS UHLMANN: Labor's environment spokesman Mark Butler ending that report from Simon Lauder.