Liberal sources confirmed the party's climate policy following a shadow cabinet meeting on Thursday and weeks of division over the issue which has threatened Sussan Ley's leadership.
The party will remain within the international Paris Agreement, signed in 2015, which requires members to increase their emissions targets every five years, the sources confirmed.
The decision follows a five-hour meeting between all 51 Liberal MPs and senators, where a majority spoke in favour of ditching Australia's net-zero goal according to people in the room.
Climate Change Authority chair and former NSW Liberal treasurer Matt Kean told ABC radio ditching net zero or delaying climate action was another form of denial selling.
Championed by the conservative faction, the party's climate shift hits Liberal moderates who see their chances of winning back vital inner-city electorates diminished as a result.
Moderate frontbenchers including NSW senators Andrew Bragg and Maria Kovacic have flagged their difficulty in remaining in shadow cabinet if the party endorses backing away from its existing net-zero pledge.
Once the party announces its policy, it still needs to negotiate a shared position with junior coalition partner the Nationals.
A joint partyroom meeting has been scheduled for Sunday, when the political partners are expected to seal a final deal on the issue.
Energy spokesman Dan Tehan unveiled a list of 10 principles informing Thursday's decision, including the two "foundational principles" of keeping the nation's power supply stable and affordable while also taking action to reduce emissions.
The list also includes a promise to extend the life of ageing coal power plants for as long as possible, lift the ban on nuclear power and scrap a series of Labor policies Liberals say amount to "sneaky carbon taxes".
Prime Minister Anthony Albanese said the opposition dropping net-zero would take Australia backwards.
"They're walking away from climate action because they fundamentally do not believe in the science of climate change," he told reporters in Sydney.
"Australians cannot afford to keep paying the price of coalition infighting when it comes to climate policy and energy policy."
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