Melbourne, Feb 22: Australia will wait for a final report on climate change policy before setting any mid- term carbon emissions reduction targets, the country's environment minister has said.

Environment Minister Penny Wong was reacting to the interim report by leading Economist Ross Garnaut, which suggested that a 2020 greenhouse-gas reduction target should be set this year and consideration be given to a tougher 2050 target, presently 60 per cent under 2000 levels.

The report released yesterday calls on the federal government to set an interim 2020 target similar to those accepted by other developed nations, such as the European Union's 20 per cent.

"We will set a mid-term target after we receive Professor Garnaut's final report and Treasury modelling and a range of other contributions, because we understand we have to have a mid-term target as well," Senator Wong told a local radio channel here.

"At the same time we have to ensure we have a very clear eye to the impact on the Australian economy. That is why we have said we will try and reduce emissions at least cost through a market mechanism which is the emissions trading scheme," she said.

Wong said the government "absolutely respected" Professor Garnaut's contribution despite not backing his recommendation for a higher 2050 reduction target.

"As everyone would expect, ultimately, it is the government that will make the decision ... That is our job. That (60 per cent) is the commitment the government has made. We believe it is an appropriate commitment, it was a commitment made that was informed by the science and the IPCC (Intergovernmental Panel on Climate Change) report," she said.

Wong said that shifting the nation to a lower carbon path is an "economic transformation".