The Australian government should set targets to cut emissions by 60 per cent, a Senate inquiry has recommended.

The environment references committee has said today that the government should develop a detailed long-term plan for energy, including setting targets to reduce emissions with an ultimate goal of at least 60 per cent by 2050.

It also urged the government to increase its mandatory renewable energy targets to at least five per cent by 2010 and 50 per cent by 2050.

The recommendations came following a study of the government's energy white paper, passed last June, which promised a ten-year plan with £55 million towards making renewable technologies cost-efficient and £30 million for solar cities trials.

Overall, the Australian government has promised just over £200 million in funding which should create at least £616 million in investment for new technologies to reduce emissions.

Australia is currently not a member of the Kyoto Treaty on climate change.