Prime Minister Malcolm Turnbull has ditched his commitment to legislate for an emissions reduction target as he scrambles to save his leadership.

Key points: Former prime minster Tony Abbott is among conservatives who have publicly spoken out against the National Energy Guarantee

Former prime minster Tony Abbott is among conservatives who have publicly spoken out against the National Energy Guarantee Cabinet minister Christopher Pyne says he's certain Malcolm Turnbull has the confidence of the party

Cabinet minister Christopher Pyne says he's certain Malcolm Turnbull has the confidence of the party Mr Turnbull's supporters say the rebellion is being fuelled by a small group, and fanned by media coverage, particularly Sydney radio 2GB

Mr Turnbull is under intense pressure from a group, led by ex-prime minister Tony Abbott, who have been attacking Mr Turnbull's National Energy Guarantee plan.

In a bid to ease the tension, Mr Turnbull this morning made another dramatic backdown on the NEG.

He said it was clear there was not enough support for an emissions reduction bill to pass Parliament at the moment, partly because some of his own MPs would cross the floor on it.

"In politics you have to focus on what you can deliver, and that's what we have done," Mr Turnbull said.

Mr Turnbull is trying to contain the backlash against his leadership and has now switched his attention entirely to bringing down the cost of electricity.

The NEG originally contained a commitment for the electricity sector to reduce its emissions by 26 per cent, which its critics said would not be enough to meet the Paris target of bringing down total emissions by 26 per cent.

Mr Turnbull said the Government was still committed to the Paris Agreement.

Backbencher says new plan's good for coal

That has been enough to appease some of those who had been angry at the NEG and therefore wavering on leadership.

Nationals backbencher George Christensen was among those who had said they could not vote for the NEG.

But today Mr Christensen called the new policy a "victory for common sense".

"We have a new energy policy thanks to a band of Liberal-National rebels who stood firm and fought for common sense," he said.

He said the new policy meant the Government would explicitly underwrite coal-fired power stations and upgrade existing coal-fired power stations.

Nationals Backbencher Andrew Gee issued a statement welcoming the Government's plans to abandon the NEG.

"I think it shows that if you stand up and be counted you can actually make a difference, but it's disappointing that it took this long," Mr Gee said.

Dutton leadership challenge talk spooks Turnbull

Malcolm Turnbull maintains he has the support of Peter Dutton. ( ABC News: Matt Roberts )

Earlier, Cabinet ministers openly admitted the Liberal Party was facing an outbreak of disunity amid reports Home Affairs Minister Peter Dutton is being urged to run for the leadership.

Mr Turnbull said Mr Dutton had given him his "absolute support".

Sorry, this video has expired Malcolm Turnbull says he retains the confidence of Cabinet and party room

Cabinet minister Christopher Pyne said he was certain Mr Turnbull had the confidence of the party.

"He is our best hope to beat Bill Shorten next year," Mr Pyne told RN.

"I don't agree with the assessment that any frontbencher is getting ready to challenge."

Mr Dutton tweeted on the weekend that the Prime Minister has his support and he supports the policies of the Government.

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But the outbreak of leadership speculation has frustrated and worried Mr Turnbull's supporters.

They insist the rebellion is being fuelled by a small and what they call predictable group of people, and fanned by media coverage, particularly Sydney radio 2GB.

Mr Pyne singled out former PM Mr Abbott as one of those driving the turmoil.

"Tony Abbott is not making any secret about his unhappiness so it is a statement of the obvious, it is not a revelation to anyone in Australia, that Tony Abbott is unhappy with the leadership and the direction of some of our policies, he has said so himself," Mr Pyne said.

Sorry, this video has expired Christopher Pyne says he supports Malcolm Turnbull's leadership

Mr Abbott told reporters as he arrived at Parliament this morning "the madness at the heart of all of our problems" is having a policy to reduce greenhouse gas emissions and this is why "I am so determined that we get out of the Paris agreement".

"As long as we are in it we will be running our power system to reduce emissions, not to give us affordable, reliable power," the former PM said.

When asked if he had lost confidence in Mr Turnbull, Mr Abbott said it was not about personalities.

"It is not about him, it is not about me, it is about what is going to give Australia the best possible energy system that delivers affordable, reliable power," Mr Abbott said.

Mr Turnbull's supporters say all the Prime Minister can do is "keep steering the ship".

Former prime minister Tony Abbott was singled out as one of those driving the turmoil. ( ABC News: Matt Roberts )

'We can win next year if we become united'

While Mr Pyne has talked down the talk of leadership turmoil, Liberal backbencher Craig Kelly said "there's no leadership challenge at the moment".

But he went on to say his support was with the Prime Minister.

"We can win next year if we become united and stick with Mr Turnbull," Mr Pyne said.

The LNP's loss in the Longman by-election is driving some of the leadership turmoil.

A Liberal moderate told the ABC that result sparked some of this leadership speculation because if it was replicated in the rest of Queensland the Coalition would lose around six seats and that would cost it Government.

There is a view that having Mr Dutton as leader could help in Queensland.

Peter Dutton (left) has recently voiced his support for Prime Minister Malcolm Turnbull. ( ABC News: Adam Kennedy )

But the ABC has been told Peter Dutton would be "hugely negative" in New South Wales, Victoria and South Australia and "we don't know how he would be received in Western Australia".

A Fairfax-Ipsos poll published today has added to the concern inside the Liberal Party.

The poll shows the Coalition's primary vote has dropped from 39 per cent to 33 per cent over the last month.

The poll shows Labor leading the Coalition 55 to 45 on a two-party preferred basis.

Mr Pyne noted the same IPSOS poll showed strong support for the National Energy Guarantee, which is one of the main policies creating division within the Coalition.

"The polling you are all talking about this morning shows 66 per cent of Coalition voters support the NEG," he said.