Environment Minister Ian Campbell said figures released this week by the UN Framework Convention on Climate Change (UNFCCC) had stated that Australia's emissions between 1990 and 2004 had increased by 25 per cent.
The UN body had failed to take into account a special provision granted to Australia to take into account its declining rate of vegetation destruction when calculating the country's emissions increase, he said.
"When all sectors are included in calculation of national emissions, as the rules of the UNFCCC and the Kyoto Protocol require, Australia's net emissions are estimated to have increased by only two per cent from 1990 to 2004 - not the 25 per cent incorrectly suggested by the UN report," Senator Campbell said.
"Contrary to the incomplete picture provided by the UN secretariat's report, Australia's most recent projections report, released in November 2005, shows Australia's on track to meet its 108 per cent target."
Under Kyoto arrangements, Australia was given a target of 108 per cent of its 1990 emissions level by the year 2012.
Australia ultimately did not ratify Kyoto but still regularly quotes the figure to show progress in its greenhouse abatement strategies.
Senator Campbell said Australian Greenhouse Office head Howard Bamsey had written to the UNFCCC objecting to the "distorted picture" given in its data.