Newly appointed Environment Minister Josh Frydenberg says he accepts the science of climate change, despite previously being dubbed "Mr Coal", because of his support for industry.

In the past Mr Frydenberg has said there was a "moral" case for the coal industry and expressed optimism about the longevity of the sector.

Mr Frydenberg, who also holds the Energy portfolio, told Lateline that he "accepts the science of climate change and recognises that Australia needs to do its part as the globe tackles climate change and emissions reduction".

But he said coal still had an important part to play in the energy mix.

"The point is that coal is an important sector in Australia. But the global picture about coal is it will remain important but it's a declining share of the overall energy mix," he said.

"It is also in a major transition. Australia has more than 40,000 jobs in that sector, it's our second largest export behind iron ore.

"It's a very complex picture but we have an optimistic story to tell in Australia. The transition is underway."

Mr Frydenberg acknowledged that Australia had a responsibility to work with countries like India as they look to transition away from coal.

"They're quadrupling their investment in renewables but they're also taking out other forms of improvement to their energy supply with an increase in use of some fossil fuels like coal," he said.

"So it's a mixed message."

Meanwhile, Mr Frydenberg said the Government was yet to work out the terms of next year's review of Australia's climate policies.

The US and Canada have committed to having 2050 climate plans by the end of this year.

Australia has set a 2020 renewable energy target and a 2030 Paris commitment.

Mr Frydenberg said the Government's focus was on the "here and now".

"Our focus is on the here and now. As for next year's review we will out the terms of reference as we go along," he said.