Coal power can be cleaned up: Hunt Environment Minister Greg Hunt believes Australia does not have to give up its coal habit completely despite dire warnings from United Nations climate experts. In the crowning summary of a landmark review, the Intergovernmental Panel on Climate Change (IPCC) says emissions of three key greenhouse gases are at a more than 800,000-year high. It says Earth is now on a trajectory for at least 4C warming by 2100 over pre-industrial times - a recipe for worsening drought, flood, rising seas and species extinctions. The report says switching to cleaner sources, increasing energy efficiency and carrying out other emission-mitigating measures would be far cheaper than the cost of climate damage. The Climate Council has seized on the findings that burning fossil fuels is not compatible with tackling climate change. "It would be ill-advised to prioritise one industry at the expense of our collective health, economy and way of life," chief executive Amanda McKenzie said on Monday. But Mr Hunt said the federal government's direct action plan will help clean up coal energy use. "The work the CSIRO is doing is looking at a 30 to potentially 50 per cent reduction in the footprint of coal fire power stations," he told ABC Radio. The government's scheme, which parliament passed on Friday with the support of the Palmer United Party and crossbench senators, provides financial incentives for big polluters to volunteer to reduce emissions. The first projects to win money from the $2.55 billion funding pool through a reverse auction will be known in the first quarter of 2015. Australian Greens leader Christine Milne says fossil fuel reserves must be left in the ground or there is no chance of preventing catastrophic warming. "The game is up - Prime Minister Abbott can no longer engage in high-risk denying behaviour, plead ignorance or continue to shirk this," she said. The NSW Minerals Council says the burgeoning middle class in countries like China and India will put pressure on energy supplies. "All energy sources are going to be needed to meet that demand," spokesman Stephen Galilee told ABC radio. He said innovation and technology would help the coal industry reduce its impact on the environment. But rushing to cut fossil fuel use in the short term would cause significant social and economic dislocation, Mr Galilee warned.