The Authority plays an important role in the governance of Australia's mitigation policies, undertaking reviews and making recommendations on:

•the Carbon Pricing Mechanism (excluding household assistance and the Jobs and Competitiveness Program)
•emissions caps under the carbon price
•emissions reduction targets and carbon budgets
•the Renewable Energy Target
•the Carbon Farming Initiative, and
•the National Greenhouse and Energy Reporting System.
Reviews are undertaken on other matters as requested by the Minister for Climate Change and Energy Efficiency or the Australian Parliament.

The Authority conducts and commissions its own independent research and analysis.

All reviews will include public consultation and all reports will be published on the Authority's web site as soon as practicable after they have been given to the Climate Change Minister.

Made up of a Chair and eight other Members, the Authority is supported by an independent staff led by a Chief Executive Officer.

Government response to recommendations
The Climate Change Minister is required to respond in a written statement to recommendations made by the Authority.