Australia has dropped two places on this year's global Climate Change Performance Index, chiefly because of the government's plans to increase coal and gas production.
Australia is now in danger of dropping back into the red zone for its climate performance.
The annual Climate Change Performance Index compares the climate action performance of 63 countries and the EU, which together account for more than 90% of global climate emissions.
"While the Albanese government's renewable energy rollout is commended, Australia has been marked down for continuing to subsidise fossil fuels and approve new coal and gas projects," said the Australian Conservation Foundation's climate program manager Gavan McFadzean.
"Australia is accelerating the decarbonisation of the electricity system but continues to sidestep the urgent need to phase out coal and gas production and exports.
"Since the election of the Albanese government, Australia has worked hard to repair its international reputation and demonstrate climate leadership.
"Despite Minister Chris Bowen's important recognition at COP28 that the age of fossil fuels must end, Australia plans to increase production of coal and gas.
"While Australia joined the Clean Energy Transition Partnership last year, the Albanese government has dragged its feet on implementing those commitments and has instead signalled support for the fossil fuel sector.
"The government's Future Gas Strategy, launched in May, envisages Australia opening massive new gas fields and continuing to burn and export the fossil fuel well beyond 2050.
"In September the government approved three thermal coal mine expansions.
"The Albanese government is failing to close the loopholes for public financing of coal and gas and continues to subsidise Australia's outsized fossil fuel exports."
The Climate Change Performance Index, which is compiled by NGOs Germanwatch, the New Climate Institute and Climate Action Network International, assesses countries on four categories: emissions, renewable energy, energy use and climate policy.
The index has been published annually at the COP since 2005.