Nobel laureate Steven Chu, who served for four years as US Secretary of Energy, also said renewable energy would be the lowest cost option to meet the world's future energy needs.

As Foreign Minister Julie Bishop and Trade Minister Andrew Robb touch down in Lima for the next round of global climate talks, Dr Chu said Australia had fallen behind countries including the US and China, which last month announced an agreement to cut their carbon emissions post 2020.

Australia became the first country in the world in July to abolish a carbon price and the Abbott government still has not set out the precise detail of how it will conduct a review to determine Australia's post-2020 emissions reduction targets.

"They've shifted a little bit the current government from the previous one," Dr Chu said.

"I'll say quite candidly, it's unfortunate, especially for Australia's own economy."

Dr Chu said last month's deal between China and the US was significant, even if President Obama faces stiff opposition to the agreement from Congress.

He said China's move to put a total cap on emissions no later than 2030 "took great courage".

"China's very serious about this," Dr Chu said.

"They will put a price on carbon in this government.

"They are trying as hard as they can to diversify from coal."

He added that Australia was in an enviable position when it came to renewable energy production and should be able to achieve the current renewable energy target which has proved so contentious "in a heartbeat".

But Dr Chu said he was an advocate of phasing out subsidies for all energy production in the next five to 10 years, be it fossil fuels, wind or solar.

He believed renewable energy under this scenario would prove the lowest cost option.

"Australia can do it and it's cheaper," he said.

"It's cheaper for the people.

"You are swimming in solar and, I just learnt, wind.

"Forget about climate, this is cheaper."