Federal Labor is committing to cutting greenhouse gas emissions by 43 per cent by 2030, if it wins government at the next election.

It is slightly lower than the 45 per cent target the party took to the last election, but higher than the Coalition's longstanding target of 26 to 28 per cent.

Leader Anthony Albanese, in releasing Labor's plan, insisted the plan would create more than 600,000 new jobs, cut power prices by $275 a year per household by 2025, boost private investment and cost the government $683 million. 

He said the plan came with the "most comprehensive modelling" ever undertaken by an opposition.

"Australian business is leading. It's time that the Australian government caught up," Mr Albanese said.

"That's why our plan to create jobs, cut power bills, boost renewables and reduce emissions is the right plan for Australia."

Mr Albanese said Labor would tighten the Coalition's safeguard mechanism, brought in under former prime minister Tony Abbott.

That mechanism allows certain companies a threshold of emissions. If they go above that, they must purchase carbon offsets, but if they fall below the threshold they can sell their credits. 

Labor is proposing to gradually lower that threshold until Australia reaches net zero emissions.

The Labor plan includes a commitment for three quarters of the Commonwealth's fleet of vehicles to be electric by 2025. That comes in addition to an earlier commitment to help make electric vehicles cheaper and expanding recharge stations across the nation.

The party had already pledged to upgrade the electricity grid, install community batteries, boost skills and invest in green metals.

The Coalition is projecting Australia's emissions will have fallen by as much as 35 per cent by 2030, but will not commit to reaching that.

The government has attributed the jump in forecast emissions reductions, in part, to the rapid uptake of household solar energy and other renewables.

Despite setting a higher emissions reduction target than the Coalition, Labor's target is still below what environmentalists want Australia to achieve.

Prime Minister Scott Morrison dismissed Labor's new target, arguing he expected the opposition would ultimately pursue an even higher target.

"This is the starting bid from Labor. It's not the final outcome," he said.

"And if they have to get into that option with the Greens to form government, it won't be 43, that will be the opening bid and it's going to end a lot higher than that."

Mr Albanese said the Coalition would "lie about this policy".

"We don't pretend that it's a radical policy," he said.

"It is a consistent policy with out approach. It will do the right thing and the right outcome on jobs and lowering energy prices."

Both Labor and the government have committed to reaching net zero emissions by 2050, but the government has been criticised for hanging its plan to get there on technologies that do not exist yet.

In October, the government announced it would commit to the target after weeks of bitter debate within the Coalition which saw some Nationals MPs say they would never support the policy.

At the time, Mr Albanese criticised the government's plan, saying it contained no new policies to reach net zero.

"Scott Morrison left it to the last-possible minute to outline a scam that leaves everything to the last-possible minute," he said.

"The word plan doesn't constitute a plan, no matter how often [Mr Morrison] said it.

"As always, with this Prime Minister, it is all about marketing."

To reach net zero, the government plans to invest more than $20 billion in "low emissions technologies" like carbon capture and storage (CCS) and soil carbon sequestration, which sees removed from the atmosphere and stored in the soil.

The pace of emission cuts and the level of support for industry to transition are set to be key issues at the federal election next year.