Rapidly phasing out coal power plants and mines will be vital for Australia's new government to meet its more ambitious carbon emissions targets, environmentalists have said, while urging renewable energy investments for mining communities.

Australia's Labor Party formed a new government on Monday, after unprecedented support for the Greens and climate-focused independents ended nearly a decade of rule by the conservative coalition in Saturday's general election.

New Prime Minister Anthony Albanese of center-left Labor has promised to end the "climate wars" — disagreements over the need for action on climate change that have dogged politics in Australia for years.