George Osborne has said he does not want Britain to be a world-leader in fighting climate change because the UK should not price itself out of international energy markets by placing too heavy an environmental burden on suppliers.

His comments come after a landmark report by the Intergovernmental Panel on Climate Change (IPCC) warned if greenhouse gas emissions remained at current rates, within 20-30 years the world wwould face nearly inevitable warming of more than 2C, resulting in rising sea levels, heatwaves, droughts and more extreme weather.

Interviewed ahead of the Tory party conference, Osborne told the Times: "I want to provide for the country the cheapest energy possible, consistent with having it reliable, in other words as a steady supply, and consistent with us playing our part in an international effort to tackle climate change.

"But I don't want us to be the only people out there in front of the rest of the world. I certainly think we shouldn't be further ahead of our partners in Europe."

The prime minister is facing calls from his own party to tackle high energy bills and the dominance of the big six companies after Ed Miliband promised to freeze gas and electricity prices if Labour won the next election.

The chancellor also attacked Labour's plans to eliminate carbon from the power sector by 2030. He argued that for an aluminium smelter to leave the UK and go to another country would not make much difference to climate change. But it would make a "huge difference" to those who lost their jobs as a result, he said.

Energy companies claim that green taxes are to blame for around 10% of the average household's energy bill.

The energy minister, Michael Fallon, is understood to be looking at ways to reduce the impact of environmental measures have on household energy bills, the Times reported. The Energy Companies Obligation, which forces suppliers to pay lagging bills for benefit claimants and pensioners, is thought to be a potential target.

A moratorium on inland windfarms is also believed to be under consideration, in a move that would appeal to many grassroots Tory supporters.

Osborne also said he would not be matching Labour's cost-of-living proposals, claiming that some would turn out to be "illegal or unworkable".

Friends of the Earth's executive director Andy Atkins said: "With the world's top scientists clearer than ever that human activity is causing climate disruption, George Osborne is showing a shameless lack of leadership.

"The chancellor's policies are not only contributing to climate change, they're also undermining our economic future by keeping the nation hooked on increasingly expensive fossil fuels.

"The tragedy is that while our top academics and leading-edge companies develop innovations in areas like battery technology and environmental design, George Osborne constantly talks them down with his unambitious words and support for fracking.

"The UK led the world on industrialisation – if our children are to enjoy a safe, clean and prosperous future we should be at the forefront of the drive to decarbonise the world's economies."