Tasmania's new premier Peter Gutwein says more needs to be done on climate change and job creation on the island state.

The treasurer was elected unopposed by his Liberal Party colleagues on Monday, replacing Will Hodgman who stood down last week for family reasons.

"A rapidly changing climate is now the new normal and we must learn from the recent lessons of the mainland bushfires and once again we must do more," Mr Gutwein said in his first press conference as premier.

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He also indicated his government would take a more compassionate approach.

"I also understand very clearly not every Tasmanian is reaping the benefits of our stronger economy and not every Tasmanian is able to grasp the opportunities that presents.

"My vision for the state is for a Tasmania that no matter where you live, no matter what your background is, no matter what your circumstances are, opportunities will be there and if you want to grasp those opportunities, a better life will be within your reach."

Mr Gutwein was elected unopposed on Monday after his only leadership rival State Growth Minister Michael Ferguson, said he decided not to stand as a candidate after consulting his colleagues over the weekend.

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Mr Gutwein thanked Mr Ferguson for making the call, describing him as a "man of integrity".

Mr Ferguson said Mr Gutwein would have his full support.

"Peter Gutwein and (deputy premier) Jeremy Rockliff have made significant contributions to Tasmania in their Parliamentary careers and they will be a strong and dependable leadership team," he said in a statement issued shortly before a party room meeting scheduled to select the new leader.

Mr Rockliff will remain as deputy premier after Attorney-General Elise Archer also decided against challenging him for the position.

Will Hodgman announced on Tuesday he would step down as premier, a role he has held since 2014.

His decision comes halfway through his second term as premier after leading the Liberal Party to a second term in government in 2018.

Mr Hodgman was personally popular across the state, particularly in the south, while Mr Gutwein, who is from the north of the state, is known for his direct and firm style.

"He's a better looking bloke than I am but I'll work very hard in every corner of the state to ensure people understand clearly what we do as a government to there is opportunity for all," Mr Gutwein said.

The new premier is considering hanging onto the Treasury portfolio, pointing out that previous premiers have managed the dual responsibilities.