Prime Minister Tony Abbott has likened new action on climate change in the United States to his Government's own Direct Action plan, which it wants in place of the current carbon pricing scheme.

The Obama administration has unveiled new plans to force power companies to cut emissions by 30 per cent on 2005 levels by 2030 - one of the strongest actions ever taken by the US to combat global warming.

Mr Abbott, who is due to meet US president Barack Obama in Washington next week, was asked by a Labor MP in Question Time whether he would "raise" his views on climate change in the discussions.

In Opposition, Mr Abbott once described climate change science as "absolute crap" but has since stated he believes humans are contributing to climate change.

Mr Abbott told Parliament the US and Australia have policies on climate change "in common".

"There is no carbon tax in the United States. There is no emissions trading scheme in the United States," he said.

"This Government is determined to ensure that there will be no carbon tax and no emissions carbon scheme here in Australia.

"What the United States is doing is taking sensible direct action steps to reduce its emissions which is exactly what this Government is proposing to do."

Environment Minister Greg Hunt says he hopes the US moves will lead to a "better" global agreement on cutting carbon emissions.

Mr Hunt, who is spearheading the Australian Government's actions to repeal the carbon pricing scheme - says it shows action can be taken without a tax.

"We welcome the American initiatives because what they show is they are providing a means for power stations to be cleaned up," he told ABC News 24's Capital Hill program.

"We are providing a means for power stations to be cleaned up. They are doing it without a carbon tax, we are doing it without a carbon tax."

Labor rounds on Coalition's 'joke' policy

But Opposition environment spokesman Mark Butler says the Coalition's policy is a "joke".

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"There are no similarities between the US approach to climate change and the Abbott Government's hopeless Direct Action policy," he said in a statement.

"For the Prime Minister to arrive at the White House with his sham policy only days after the US announces such an ambitious initiative is embarrassing for Australia."

If the US measures withstand an expected onslaught of legal and legislative attacks, they will come into effect in the middle of next year.

On the international stage, it could give Washington greater legitimacy in next year's talks to adopt a new global agreement for fighting climate change.

The United Nations Climate Change conference will be held in Paris in December 2015 in a bid to get all countries to adopt an agreement to be implemented from 2020.

Hunt hopes for global agreement

Mr Hunt says stronger action in the US could influence action globally.

"I hope the US initiative will contribute to a better global agreement," he said.

"I have long said that we need the United States and China, India and the EU to be the four cornerstones of a global agreement.

"We want a good global agreement, it matters, it's important, it's significant and it will make a difference."

Sorry, this video has expired Obama uses executive powers to demand carbon cuts ( North America correspondent Michael Vincent )

Mr Hunt says the Coalition's new $2.5 billion Emissions Reduction Fund (ERF), which is slated to begin July 1 but is yet to pass Parliament, will also address emissions from power stations.

The ERF will award funding through reverse auctions to "practical" programs that aim to cut emissions, but will not mandate which facilities are involved.

"We will achieve our targets as a country and that's all that the planet knows. All that the planet knows is not the source of the emissions, it's the total volume of output," he said.

Mr Hunt says legislation for the ERF will be introduced to Parliament by June 30.

The Government is facing hurdles in the Senate, with both Labor and the Greens slamming the Direct Action plan as a waste of money.

Queensland MP Clive Palmer - whose PUP Senators will hold crucial balance of power seats after July 1 - has also criticised the policy and threatened to reconsider his support for axing the carbon tax.