The cost of slashing Australia’s greenhouse gas emissions by 25 percent on 2000 levels by 2020 is about $1.8 billion, or as little as $185 per household, according to new  research by the non-profit outfit ClimateWorks.

Most of the cuts would come from improving energy efficiency in buildings and appliances and growing trees on farms. However the target can only be met by the end of the decade if a carbon price is also put in place, the research found.

Two thirds of emission cuts can be achieved not only at no cost to business, but often by saving money. For instance, 29 percent of the required cuts can be achieved by energy efficiency measures that in the long run save business money. Another 36 percent can be cut by planting trees.

The final 35 percent cut requires a carbon price. The research found that putting a price on carbon was the only incentive that would push business to invest in emissions reduction.