More to come for climate: 'immense strain' on taxpayers

Australia has notched up a record year for renewable energy investment but more is needed, and quickly, the nation has been warned.

"We are doing well, but there is more to be done - for emissions, for affordability and for reliability," Climate Change and Energy Minister Chris Bowen told federal parliament on Thursday.

Making the third annual Climate Statement, Mr Bowen said Australia was especially vulnerable to climate change, which was impacting the environment, communities and economy.

"Net zero by 2050 is not optional. Which means the critical decade is now. Not some hypothetical time in the distant future," he said, in a swipe at the opposition's plans to build nuclear reactors.

With six years to go to reach the legislated target of a 43 per cent reduction in greenhouse gas emissions, he said the nation was on track to meet it and to make 82 per cent renewable electricity in the national grid by 2030.

Australia's first new vehicle efficiency standard will reduce transport emissions and agreements have been struck with states and territories on an additional 32 gigawatts of renewable generation and storage by 2030.

The nation's climate tsar Matt Kean said Australia needed to "nail the delivery" of these initiatives.

"Cutting emissions now is an urgent priority and investing in renewables is the best way to do it," he said, issuing a progress report by the Climate Change Authority.

More rooftop solar and battery storage could bring more clean electricity into the system quickly, with less need for new transmission infrastructure.

Added capacity of renewables was expected to be hit 7.5GW in 2024, with an additional 1.2GW on track for approval in early 2025.

Opposition climate change and energy spokesman Ted O'Brien said Labor's renewables plan was "financially irresponsible" and placed "immense strain" on taxpayers who were paying more for electricity.

A Future Made in Australia plan, which the coalition opposes as "tax breaks for billionaires, is intended to unlock investment in net zero industries.

Australia was "back on the map" and rising up the rankings, Investor Group on Climate Change Erwin Jackson spokesman told AAP.

"A few years ago international investors ranked Australia alongside the petro-states on its climate policy," Mr Jackson said.

Mr Bowen reiterated the government would have an "ambitious and achievable 2035 emissions reduction target", as pressure builds to show their hand before the next federal election.

The Australian Energy Market Operator expects 90 per cent of coal-fired power generators to retire by 2035 and need cleaner replacements with electricity demand set to rise from emerging net-zero industries.

The Australian Energy Market Commission said it would accelerate access to smart meters, so consumers and the energy system could get the benefits they offer sooner.

A growing network of consumer-owned energy resources includes rooftop solar, batteries, electric vehicles with bi-directional charging, hot water heaters and pool pumps.

Releasing a price review, the commission found households that fully electrifies could reduce annual energy expenditure by 70 per cent, but households that cannot electrify will face higher energy costs.