Most of Australia's coal reserves will have to be left unburned if the world is to avoid catastrophic global warming, according to a major new report from the federal government's Climate Commission.

The report puts the key science advisory body on a collision course with some of the nation's biggest export industries, and marks the first time a government agency has endorsed calls for fossil fuel industries to be phased out because of their contribution to climate change.

Taking action: Professor Lesley Hughes. Credit:Peter Morris

Its findings mean that most of Australia's known coal, oil and gas reserves – many of which are already subject to minerals production licences held by companies such as BHP Billiton and Rio Tinto – must somehow be left alone if the world is to avoid dangerous climate change.

The Climate Commission acknowledged its conclusions were "sobering" and that the potential for economic disruption could be serious, but said there was no alternative if the world was to avoid dangerous climate change.