A new report suggests Australia's gas resources could emit the equivalent of three times the world's annual carbon emissions.

But the petroleum industry says it's a "massive exaggeration".

Environmental groups are calling for a clean energy recovery, with an Australian Conservation Foundation report released on Thursday pointing to the emissions intensity of gas.

The report says that if Australia's identified and prospective gas resources were used, they could emit three times the globe's annual carbon emissions.

The lowest emissions estimate would still result in the gas resources emitting more than the current annual level.

ACF's chief Kelly O'Shanassy says gas directly contributes to global warming.

"Unleashing the pollution from Australia's full gas reserves would make it almost impossible for the world to meet Paris Agreement goals," she said.

"The COVID pandemic's massive disruption to our industries and jobs has deeply upset Australians, but it won't compare to the economic disruption we will experience if our governments back dirty fossil fuels like gas over clean, renewable energy and technology."

The research was conducted by the Australia Institute, with the think tank using data from government agencies including Office of the Chief Economist and Geoscience Australia.

The institute's climate and energy program director Richie Merzian says the research shows gas is not a transition fuel.

"It is central to the problem in the fight to address climate change," he said.

Australia has become the world's largest exporter of liquefied natural gas, causing emissions to rise in that sector.

Australian Petroleum Production and Exploration Association chief Andrew McConville has dismissed the analysis.

"This massive exaggeration completely overestimates both the growth and emissions of the oil and gas industry," he said.

"The same recycled attempts to portray natural gas and renewables as in competition overlooks the complementary and enabling role natural gas plays with renewables in moving to a cleaner energy future."

Meanwhile, a new report has called for the governance framework of the Australian Energy Market Operator to support investment efficiencies, manage growing customer costs and achieve national energy goals.

Australian Associated Press