The Abbott government should draw up national rules restricting how wind farms are built and operated and punish states that do not accept them, a Senate committee has urged.

In its final report published on Monday evening, the committee puts forward a range a measures to curb wind farms, including recommendations to reduce support for projects under the national renewable energy target.

The Capital Wind Farm near Canberra. Credit:Jamila Toderas

The inquiry's recommendations were backed by government and crossbench senators on the committee. But Labor members wrote a dissenting report rejecting the proposals as expensive, duplicative and unworkable.

The report comes at a sensitive time for the Australian wind industry, which has seen investment dry up over the past 18 months on the back of uncertainty surrounding government support.