The Federal Cabinet has agreed to cut the renewable energy target to Labor’s recently proposed figure of 33,000 gigawatt hours.

The target means that 20% of Australia’s electricity is to come from renewable sources by 2020.

When the 20% figure was first set, it represented 41,000 gigawatt hours of energy but total electricity demand has fallen significantly since then.

The Labor Party and the Coalition are yet to meet to finalise the deal but Labor leader Bill Shorten has indicated the opposition would accept that figure.