After a year-long inquiry, a committee appointed by the opposition-controlled Senate demanded the government rethink its greenhouse approach and clarify its position on the science of climate change.

The committee was set up to investigate, among other issues, why Australia's per capita greenhouse gas emissions, which contribute to global warming, are the highest in the world.

They are 17 percent above the levels of just two years ago despite Canberra's agreement as part of the so-called Kyoto Protocol in 1997 to limit growth in emissions to eight percent above levels 10 years ago.

The committee found there had been little progress since Prime Minister John Howard announced anti-greenhouse measures in 1997. It called for strict standards to help combat global warming, including tougher penalties for non-compliance.

It also predicted harsh world penalties if the government did not take abatement programs seriously, warning inaction would harm the economy, environment and social standards.

Australia is likely to face stringent targets to reduce its greenhouse contribution when the Conference of the Parties (COP), an international conference looking at unresolved issues following the Kyoto protocol, meets in the Hague later this month to assess climate change.

"Public debate on greenhouse includes scepticism about the legitimacy of greenhouse science," the report said. Sectors of industry had claimed the costs of reducing emissions would be detrimental to Australia's national interests and growth.

"While there does remain a level of scientific uncertainty about the regional impacts of climate change, the committee heard evidence which convincingly refutes such views.

"Given its climatic vulnerability, Australia has a strong national interest in global action to dramatically cut emissions over the long term."

The protocol can only be legally binding if it is ratified, an action which could take place at the COP meeting.

The committee urged the government to ratify the protocol to ensure Australia does not face strict international penalties for not meeting abatement targets.

The government has sided with industry over anti-global warming measures, Foreign Minister Alexander Downer arguing job security was more important than simply signing the protocol.

Greenpeace climate campaigner Gareth Walton said the report showed up some of the government's efforts to belittle greenhouse concerns.

"Greenpeace welcomes the committee's clear rejection of the arguments of the greenhouse sceptics and the acknowledgment that the cost of doing nothing to stop climate change will be far greater than the cost of acting," he said.

"The government is using a narrow definition of the national interest when dealing with greenhouse, one which favours the big polluters."

However, the government defended its stance, saying the world recognised Australia's efforts to tackle global warming.

"Australia is ahead of most developed nations in implementing domestic action plans," Environment Minister Robert Hill said.

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