Labor says the Paris agreement struck over the weekend, under which all nations will aim to keep global warming below 2 degrees or lower compared with pre-industrial levels, shows Australia's domestic policies are "out of step with the rest of the world" and inconsistent with the new global accord.

The Greens and environment groups say the agreement shows the coal era is over and renewable power – set for an investment boost following the Paris talks – is now undeniably central to the world's energy future.

The Paris agreement, which will take effect in 2020, will require all countries, including poorer ones, to tackle climate change.

Countries will seek to reach net zero greenhouse gas emissions in the second half of the century and review their targets every five years. They will also be required to adopt a consistent approach to reporting on both national emissions and progress towards meeting their targets.

Developed nations will allocate at least $US100 billion ($1.39 billion) a year in public and private funding to help poorer nations cope with climate change and this commitment will be reviewed in 2025.

Foreign Affairs Minister Julie Bishop said the agreement was "an historic step in the global response to climate change" and Australia worked constructively with other nations to secure a bold, enduring outcome that, for the first time, requires all countries to reduce emissions.

However she reportedly said it would be difficult for Australia to ramp up its climate efforts and "we have to get that balance right between environmental and economic outcomes".

Mr Turnbull's own personal views on the need for strong climate action have been curtailed by his party's conservative wing, upon whose support he relied to take the leadership.

NSW Liberal backbencher Craig Kelly, who has been skeptical of the need for climate action, wrote on Facebook of the Paris deal: "THEY'VE DONE IT!! Hallelujah. The world is saved ... The polar bears can sleep soundly tonight."

Minerals Council of Australia chief executive Brendan Pearson, whose organisation represents the mining industry, said the Paris agreement would support low-emissions coal technologies.
 
The deal would aid the development of carbon capture and storage and support the "rapid growth of new generation nuclear power in East and South Asia, providing strong demand for Australian uranium exports", he said.

Labor's environment spokesman Mark Butler on Sunday said the global pact showed Mr Turnbull's policies, including pollution reduction targets and an intention to abolish several climate-related agencies, were "massively out of step with the rest of the world and completely inconsistent with the agreement that was struck overnight".

"There is now a clear choice for Malcolm Turnbull. He either sets Australia up to get with the rest of the world and harness the enormous jobs and investment opportunities that come with this agreement, or he keeps Australia shackled to the reactionary legacy of Tony Abbott and his right wing views about climate change and renewable energy. He can't have it both ways," Mr Butler said.

Greens environment spokeswoman Larissa Waters said Australia refused to sign up to an agreement in Paris to phase-out fossil fuel subsidies, despite being the world's largest per capita polluter.

Australia had great potential in wind, tidal, geothermal and other clean energy options and "the age of coal is over".

"We need to get off fossil fuels and support those workers to transition into clean energy production and into other high-tech sustainable employment," Senator Waters said.

Climate Institute chief executive John Connor said the Paris deal left Australia "conflicted". The nation's target emissions cuts for 2030 – 26-28 per cent, based on 2005 levels – are inadequate and would still leave it the highest per capita polluter in the G20, alongside Saudi Arabia, he said.

Bloomberg New Energy Finance's Australian chief Kobad Bhavnagri​ said the Paris deal meant Australia would likely have to significantly strengthen its 2030 emissions reduction commitment every five years.

Global coal use would have to be curbed if the ambitions were to be met, reducing demand for Australia's exports, he said.

"Deeper cuts in emissions imply that Australia will also need to hasten the deployment of renewable energy, make more concrete steps to reduce usage of fossil fuels, especially coal, and develop more robust, scalable and non-government funded carbon policy if the emissions reductions are to be achieved domestically."

Mr Bhavnagri said this could be achieved through the renewable energy target, policy aimed at retiring coal-fired generators, more carbon regulations or a carbon price.

Clean Energy Council chief executive Kane Thornton, whose industry suffered a crisis of confidence under the Abbott government, said the global deal accelerated existing moves "towards a zero-carbon energy sector".

"It is no longer a question of whether or not this will happen. The question is now about what we need to do to prepare for the changes that have already begun," he said.

Australian Industry Group chief executive Innes Willox​ said the global deal gives Australia flexibility to "design policies that match our circumstances" and cut costs via the use of international carbon markets in tackling climate change.

The agreement helped address "industry's number one concern with climate policy: the risk that uneven international action disadvantages trade exposed businesses, their employees and the broader economy," he said.

"Addressing the competitiveness challenge will remain central to the task of designing Australia's long-term climate and energy policies. If the nations of the world deliver their Paris pledges, that concern will be easier to allay."

Business Council of Australia chief executive Jennifer Westacott​ said Australia's commitment to domestic action "will be a challenge to achieve". She welcomed the provision for "international linkage and the capacity for market mechanisms, which will be important to achieve emissions reduction at least cost to economies".