Climate experts have warned that if Australia matches Canada's climate targets it would show the Abbott government is prepared to accept "devastating" global warming.
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And an emissions reduction target that put Australia on par with the US would still leave the nation lagging behind other developed economies that are doing more to combat climate change, the Climate Institute says.
But Prime Minister Tony Abbott is also being urged by climate sceptics in his party room not to go too far with emissions reduction measures.
Fairfax Media revealed on Tuesday that the government is considering tougher emissions reduction targets that could see Australia running with Canada and the US in the post-2020 period.
The Climate Institute's deputy chief executive Erwin Jackson warned that matching Canada's target of 30 per cent on 2005 levels by 2030 was consistent with international action that would put the world on a path for 4 degrees of warming instead of the globally agreed 2 degrees.
Mr Jackson said the US target of 26 to 28 per cent on 2005 levels by 2025 was preferable because it at least left the door open for increased effort to cut emissions in the years to 2030.
"There's a big difference between a 2025 target and a 2030 target," he said.
"If Australia was going to match the US it would be putting forward a 2025 target.
"A 2030 target risks locking in low levels of ambition and not sending a credible short-term signal to business that they need to get on an invest in a low carbon economy."
Foreign Minister Julie Bishop and Environment Minister Greg Hunt have met several times, including as recently as last Thursday ahead of an upcoming final meeting with Mr Abbott before a submission on what Australia's post-2020 target should be is completed and taken to cabinet.
It is understood both ministers are urging Mr Abbott to choose an ambitious target but anything too high could see the Prime Minister alienating a climate-sceptical back bench.
Liberal Party backbencher Dennis Jensen said he wanted Australia's target to be "low, quite frankly".
"The reality is that the Prime Minister originally got his position due to quite a ferocious debate of the issue of an emissions trading scheme," Mr Jensen said.
"It's clear the party room isn't broadly supportive of high targets."
