China continues to increase its renewable energy use as the Asian nation works towards lowering growth in carbon emissions, a report says.

The federal government's climate commission released a report on Monday showing the world's two largest economies, China and the US, are on the path to meet their international commitments on climate change.

Chief commissioner Tim Flannery says China is set to become a global leader on climate change.

''China has halved its growth in electricity demand, dramatically increased its renewable energy capacity, and decelerated its emissions growth more quickly than expected,'' Professor Flannery said in a statement on Monday.

He says China has begun to curb its use of coal in producing energy after years of strong growth.