Australia is set to fall significantly short of its Paris climate change targets, undermining claims by the Morrison government that the economy will meet its international obligations "in a canter."

Official figures released by the Department of Environment and Energy on Friday show that on current trends Australia will only reach an emission reduction target of 7 per cent on 2005 levels by 2030, a massive 19 percentage points or two thirds of the way short of the minimum target mandated by the Paris agreement.

But the government will argue that under UN accounting rules, Australia is eligible to carry forward credit for targets it has met since 2008 - a move ruled out by Britain, Germany and New Zealand - slashing in half the emissions reductions required to meet our international obligations.

Environment Minister Melissa Price. Credit:Alex Ellinghausen

Hours after the release of the figures Prime Minister Scott Morrison confirmed the government would carry forward the credits and said the "significant progress highlights Australia is going to meet our 2030 target in a canter".