Australia's gas exports are "good for the world" even though local greenhouse gas emissions are increasing because of them, the federal energy minister argues.
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Australia's greenhouse emissions have risen 0.6 per cent over the year to March mainly due to higher LNG exports, the latest figures show.
The quarterly update of Australia's National Greenhouse Gas Inventory released on Friday showed emissions had risen by 3.1 million tonnes to 538.9 megatonnes over the 12 months to March.
Electricity sector emissions fell by 2.1 per cent over the same period, largely because of a drop in brown coal and gas use and a rise in renewable-sourced energy.
Emissions in agriculture have also decreased.
But emissions in other sectors have increased, largely on the back of LNG exports, as well as steel and aluminium production.
The federal government has handed $60 million to Chevron's massive Gorgon gas project off WA for it to reduce its emissions.
The company started its carbon capture and storage system this month - four years later than originally planned.
Energy Minister Angus Taylor says the government is strongly encouraging all LNG projects to "do the right thing".
"We are seeing a reduction in emissions as a result of Australia's gas exports, but we have to wear a small increase as a result of it," he told reporters in Melbourne.
"And those emissions, in total, are far less than what we achieve in reductions when we export the gas. So this is good for the world."
The majority of Australia's LNG production occurs in WA, which was until this week the only state without a net zero emissions target.
The policy explaining how the state government will achieve that goal won't be released until next year.
Federal Labor's climate spokesman Mark Butler says the government's plan to reduce emissions is a "waste" of taxpayer money.
"Australians have come to expect this from a government that is not serious on taking real action on climate change," he said.
"The Liberals' record on climate speaks for itself."
Mr Taylor insists Australia will meet its Paris targets - to reduce emissions by 26 to 28 per cent on 2005 levels by 2030 - through its $3.5 billion plan that focuses on paying companies to reduce their pollution.
Overall emissions have continued to rise since the carbon price was repealed in 2014.
Australian Conservation Foundation's Matt Rose has questioned how the government will meet the Paris targets.
"Australia's planned coal and gas expansions contradict international efforts to address climate change and are completely inconsistent with the global energy transition that is needed to meet the targets in the Paris Agreement," he said.
Australian Associated Press
