$250b price on carbon cut ridiculous: Hunt

The federal government has labelled as "ridiculous" business estimates that meeting Australia's target for cutting carbon pollution will cost as much as $250 billion.

Instead, Environment Minister Greg Hunt told ABC radio on Thursday the budgeted $200 million a year for the emissions reduction fund would be sufficient to meet the 2030 goal of cutting up to 28 per cent of 2005-level emissions.

The figures bandied around by the Ai Group were "plainly ridiculous, unacceptable and wrong", he said.