Australia on track to beat emission target

Environment Minister Josh Frydenberg says Australia is on track to beat its 2020 emissions target following the latest emission reduction fund auction.

Results from the Clean Energy Regulator for the fifth auction since its inception show 31 contracts were awarded for 11.25 million tonnes of abatement at an average price per tonne of $11.82.

Total abatement under the scheme is now 189 million tonnes at an average price of $11.83 across all five auctions.

"Results from this latest auction will help ensure we meet our 2020 emissions reduction target, which we are currently on track to beat by 224 million tonnes," Mr Frydenberg said in a statement on Thursday.

"It will also help to meet our 2030 target."

There is $300 million left from the original $2.5 billion fund for the purchase of further abatement.

The fund offers opportunities for business, farmers and others to reduce emissions across the economy by storing carbon in forests and soils, improving energy efficiency, fuel switching and capturing methane from landfills.