Direct Action won't work: climate body

The Abbott government's Direct Action scheme is unlikely to meet a legislated carbon emissions reduction target by 2020, its climate advisory body says.

The Climate Change Authority, in its report into the renewable energy target released on Monday, says it is premature to reach firm conclusions about the scheme's effectiveness given it is not yet operational.

"However, the authority considers it unlikely (it) would deliver even the minimum five per cent target without significant complementary action," authority chairman Bernie Fraser said in a statement.

The Direct Action scheme pays big polluters to volunteer to reduce emissions.

The first projects to win funding from the $2.55 billion funding pool will be known in early 2015.

The authority also called on the government to retain the 41,000 GWh renewable energy target to allay industry uncertainty because of a political deadlock.

The coalition is at loggerheads with the opposition because it wants the RET cut to 27,000GWh while Labor holds firm to a target in the high 30,000s.

The authority was highly critical of any plans to reduce the RET, saying it did not "see any magic" in such a move.

It has suggested delaying the timeframe for achieving the target until 2023 to increase its chances of success.

The government had sought to axe the Climate Change Authority but agreed to retain it as part of legislative negotiations with the Palmer United Party.

The government said it would carefully consider the report and table its response to recommendations in due course.

The coalition was committed to reforming the RET and would continue to seek support for its reduction.

"The door remains open to Labor to recommence negotiations," a spokeswoman for Mr Hunt said in a statement.