Opposition Leader Sussan Ley jettisoned a 2050 net-zero emissions target after a sustained push from the conservative flank, and the Liberals will instead pump more taxpayer money into coal and gas plants with the aim of bringing down power bills.
The party also committed to reducing emissions on average year-on-year, while scrapping legislated targets put in place by the Labor government.
The Liberals would "step on the gas" to bring down power prices by pumping more supply into the system, Ms Ley said.
"We have to open up more supplies of gas, more basins, we have to support the connection of pipelines by making it easier for the private sector to step in and do the work that they're ready to do, but environmental approvals are holding them back," she said on Friday.
Energy Minister Chris Bowen accused the coalition of contradicting itself, saying if they wanted cheaper power, renewable energy was the way to go.
"They say they want to reduce emissions, but then they talk about new coal-fired power, they say they're against government subsidies, and they criticise me for not subsidising coal and nuclear and carbon capture," he told reporters in Sydney.
"And then they say they want cheaper power, and they oppose renewables.
"I don't think the coalition got the memo from the Australian people in May."
The opposition leader has also tried to quell concerns the party is moving away from environmental protection, especially with younger voters who see net zero as a proxy for climate action.
"Young Australians have told me that they care about climate. I care about climate too," Ms Ley said.
"What we've said is we will reduce emissions on average year-on-year, in line with comparable countries, as far and as fast as technology will allow.
"But Australians deserve affordable energy."
Former Liberal prime minister Malcolm Turnbull, who was rolled by his own party after failing to land a moderate climate policy with agitated conservatives, criticised the party for not heeding the lessons of the past after two electoral wipeouts in metropolitan areas.
Former Liberal MP and moderate Fiona Martin warned of electoral irrelevance.
"This is a sad day for the Liberal Party that hopes to one day govern again, Australia needs strong leadership on climate," Dr Martin told AAP.
Leading moderate and frontbencher Andrew Bragg said it was important the party remained committed to the international climate pact and "had something on net zero".
"That's where we've ended up, so it is what it is," he told Sky News.
Opposition energy spokesman Dan Tehan, who oversaw the development of the Liberals' policy and will negotiate with the Nationals on a joint climate policy to be signed off on Sunday, criticised Labor for failing to deliver on a promise of cheaper power prices.
"Everyone that I've spoken to right across Australia, right across industry, says that one of the first things that needs to be prioritised is getting more gas into the system," he said.
Mr Tehan refused to commit to releasing the party's modelling on the policy, and Ms Ley has not confirmed power prices would be cheaper in real terms, instead saying "prices will always be more affordable under us".
