Labor and LNP finally agree on Renewable Energy Target

FEDERAL Parliament will now view legislation after the Coalition and Labor parties finally reached an agreement on the country's Renewable Energy Target.

Both parties have agreed to lower the target from 41,000 gigawatt hours to 33,000 gigawatt hours by 2020.

Last week Labor was critical of the target.

Shadow environment minister Mark Butler demanded the Coalition scrap its plans to review the target every two years. He said it would turn off renewable energy investors.

But Industry and Science Minister Ian Macfarlane said on Monday Labor had initially agreed to the reviews then "changed their mind".

The plan for reviews was taken out of the scheme and Mr Butler on Monday said he was pleased the government backed down.

Labor also previously expressed concerns about how burning wood waste was included in the scheme, but Environment Minister Greg Hunt said biomass was in the original legislation.

"The only change is that the ALP's reference to wood waste which would otherwise lie on the floor of the forest, rot, release methane, or be burnt, will now be used constructively," Mr Hunt said.