Foreign Minister Julie Bishop has responded to the Climate Change Authority's criticism of the Government's emission reduction targets, saying its estimates are incorrect.

On Tuesday, the Federal Government announced plans to cut emissions by 26-28 per cent by 2030 based on emissions from the year 2005.

The Climate Change Authority said with the "right" policies it believed more ambitious targets than those adopted by the Government could be achieved at modest costs.

Authority chair Bernie Fraser said in a statement the body had recommended reductions of 45-63 per cent by 2030.

"Along with other countries, Australia has agreed to work towards reducing emissions to levels consistent with limiting global warming to less than 2 degrees Celsius above pre-industrial levels — this remains a challenging task," he said in a statement.

"Measured against the reductions in emissions required to deliver a reasonable chance of limiting global warming to 2 degrees, all countries have a lot more work to do over the decades ahead."

But Ms Bishop said figures released by the Authority were disputed by the Federal Government.

"Mr Bernie Fraser ... [stated] China's emissions would increase by 72 to 96 per cent above 2005 levels by 2030. The Australian Government disputes these figures," she said in a statement.

"China's 2030 target will allow emissions to increase by around 150 per cent from 2005 levels when calculated on China's national currency."

She said Australia's 2030 target was strong, responsible and achievable.

"We have a proven track record of meeting our climate targets. We met our first Kyoto target and are on track to meet our 2020 target."

Addressing the South Australian Liberal Party annual meeting, Prime Minister Tony Abbott said the emissions target was leading the pack economically and environmentally.

"When it comes to emissions per capita, our target, a target that we are absolutely confident that we can and will meet, is the best in the world," he said.

"So let's not have anyone say that this is a government which is indifferent to environmental outcomes."

Opposition laughs at Abbott's recognition of climate change

The Federal Opposition says Mr Abbott should not be applauded for stating climate change is real, years after the rest of the world acknowledged the issue.

Mr Abbott told Liberal Party faithful in Adelaide the Government was serious about combating climate change, but would not hurt the economy in any action it took to address it.

"Climate change is real. We must take action because humanity does make a contribution," he said.

Shadow treasurer Chris Bowen said Mr Abbott's comments were laughable.

"The Prime Minister once famously called climate change science complete crap, now he says he wants a pat on the back because he's worked out that it's real," he said.

But Mr Abbott said the Government's plan would not have the same adverse economic impact of the now-abolished carbon tax the Labor government implemented.

"Costs under us at between $3-5 billion a year in 2030 are well and truly manageable. The costs under Labor, should this ideological obsession of theirs be maintained, would be simply catastrophic," he said.

Finance Minister Mathias Cormann said Australia was on track to meet and exceed Kyoto agreement targets and had set a credible and responsible target for the upcoming Paris conference.

"We are about in the middle of the pack, which is where we should be," he told Sky News.

Labor frontbencher Matt Thistlethwaite said Labor believed the Government should accept the experts' advice on measures needed to limit global warming to 2 degrees.

"They are advising at the moment that Australia is down the bottom of international best practice and we won't meet that 2-degree scenario," he told Sky News.

ABC/AAP