Malcolm Turnbull has capitulated to rebels in the Coalition party room, dumping a plan to embed emissions reduction targets in Commonwealth legislation.

Key points: Turnbull weakened stance on emissions targets to appease rebel MPs

Turnbull weakened stance on emissions targets to appease rebel MPs The 2016 Paris Agreement set emissions targets of 26 to 28 per cent lower by 2030

The 2016 Paris Agreement set emissions targets of 26 to 28 per cent lower by 2030 Cabinet ministers to meet on Sunday to discuss new approach to energy policy

To appease critics and lessen the prospect of a backbench revolt, the Prime Minister will instead propose setting emissions targets by regulation, which does not need the assent of Parliament.

The reconfigured climate and energy policy will be more heavily geared towards driving down prices — in part to satisfy Coalition critics who say Mr Turnbull has been more focused on the Paris climate settings rather than household price pressures.

Mr Turnbull's predecessor, Tony Abbott, was PM when Australia agreed to set emissions targets of between 26 per cent and 28 per cent by 2030, but Mr Abbott has since railed against abiding by this target.

The Government will also embrace a raft of price-focused measures proposed by the competition watchdog, the ACCC.

These include setting default prices for consumers and ensuring "gentailers" — power companies that both generate and retail electricity — don't gouge customers by over-inflating contract prices.

The new approach on energy policy will be discussed by Cabinet ministers when they meet at The Lodge in Canberra for dinner on Sunday evening.

The revised plan will go formally to Cabinet on Monday night and likely be debated by the coalition party room on Tuesday.

Several MPs have already said they are prepared to cross the floor on existing Government plans, including Mr Abbott, George Christensen, Andrew Hastie, Kevin Andrews and Andrew Gee.

Only this week, the Prime Minister fiercely defended the plan to legislate the Paris targets, saying to do otherwise would deny Parliament "a voice".

"Now, we believe in democracy," Mr Turnbull told Parliament on Tuesday.

"We believe the Parliament should have a say in this and so if we legislate that, then a subsequent government — whether it's of our side of politics or the other — would have to persuade both Houses of Parliament to make any change to it, and that is a great security."

Mixed response from backbenchers

The proposal to have the 26 per cent target set by regulation has received a mixed response from Coalition backbenchers.

Former deputy prime minister Barnaby Joyce is yet to be briefed on the change.

"Mate, I haven't had time to look over it," he told RN Drive.

But he welcomed the prospect of more oversight of power prices by the ACCC.

"If the Prime Minister is talking about ACCC oversight, I know (lower power prices) is what drives the ACCC as well, so possibly a very good outcome," he said.

"I don't care if you've got a 1 per cent target or a 100 per cent target or no target at all. The only target that I'm concerned about is the target on prices."

Liberal MP Craig Kelly told Sky News the Prime Minister's change "could make this thing worse, not better".

"The great concern is if you put it in regulation, that gives a future Labor party, a minister, just by a tick of a pen or a stroke of a pen to change the regulation and put the target up higher even without taking it through the full democratic process of both the House of Representatives and the Senate."

Mr Joyce also addressed the issue of Malcolm Turnbull's leadership, suggesting the Prime Minister should consider his electoral standing sometime before the next election.

"It's beholden for any leader to make sure his side wins and that's down the track."

Mr Joyce suggested that wasn't an immediate concern for Mr Turnbull, but an important consideration in the future.

"He's got to make sure before an election that we have the capacity to win.

"Any leader, that's the same as the Labor party, make no mistake about it.

"They won't be going to an election with Mr Shorten if they think Mr Shorten is going to lose, they'll go with Anthony Albanese.

"That's politics."