A report commissioned by the Australian Federal Government released on Friday, showed Australia should increase its energy efficiency by 30 percent over the next decade, and the best way to do it is with a carbon price.

The report was commissioned by former prime minister Kevin Rudd when he won support from the former opposition leader Malcolm Turnbull for the emissions trading scheme last November.

Climate Change Minister Greg Combet said the report will be an important part of the climate change debate.

"Pollution is contributing to climate change, we therefore as a government have a responsibility to consider ways of cutting pollution," Combet told ABC Radio on Friday.

"Supporting renewable energy, promoting energy efficiency and introducing a carbon price into the economy are three responsible ways of doing that."

The report would also lead discussion on energy efficiency, Combet said.

It recommended a 30 percent increase in energy efficiency by 2020, and suggested that target could be reached with measures like cleaner cars and greener buildings.

The most effective step to reduce greenhouse gas emissions on five percent by 2020 is to introduce a price on carbon, the report stated.

The report came as the Greens and BHP Billition CEO last month urged the Labor government to impose tax on carbon emission, before any international agreement.