Investors are urging the Turnbull government to increase emission reduction targets in the proposed national energy plan or risk another decade of "policy paralysis".
The Investor Group on Climate Change on Tuesday called for emissions targets to be in line with the Paris Agreement, which limits global warming to below two degrees Celsius.
The IGCC, a body of about 70 Australian and New Zealand investors with about $2 trillion worth of assets, includes ANZ Wealth Management, Australian Super and real estate group Mirvac.
The National Energy Guarantee centres on a target of a 26-28 per cent reduction on 2005 level emissions by 2030, while ensuring supply is reliable due to electricity retailers investing in dispatchable energy sources.
Chief executive of the IGCC Emma Herd says the proposed plan doesn't seize the opportunity to build on the momentum towards low carbon electricity generation, as there's no support for investment after the end of the Renewable Energy Target in 2020.
Ms Herd says it's in no one's interest for the NEG to fail, but the design has to be considered.
"Or we risk losing another decade to policy paralysis and the increasing costs of climate change," she said in a statement.
"Unless we get the emission targets right, the best design in the world won't add up to a credible pathway forward."
A group of more than 20 energy stakeholders, including Woolworths Group, AGL, Adani Renewables and BlueScope Steel, on Tuesday called for the energy ministers to approve the NEG framework as soon as possible.
Energy Minister Josh Frydenberg will meet with his state and territory counterparts on Friday to secure their tick of approval for the plan before it goes before the coalition party room on Tuesday.