The Abbott government will appoint four new board members to the Climate Change Authority, an agency it had tried to scrap but has been forced retain by the Senate.
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It comes as the authority prepares to undertake an 18-month inquiry into the effectiveness of emissions trading.
Environment Minister Greg Hunt said the government would appoint the new board members to replace John Marlay, Heather Ridout, Elana Rubin and Lynne Williams, who resigned from the authority earlier this year.
Mr Hunt refused to speculate on the likely replacements, but in a statement said the government was looking at all possibilities.
"Board members will be appointed on due course. We will carefully consider possible appointments and they will be announced appropriately," he said.
It is understood the appointments will be announced within the next two months.
There are fears within the authority, the government could choose replacements who are hostile to climate policy.
The government had vowed to abolish the agency, which provides independent advice on reducing greenhouse gas emissions, but failed to secure the numbers it needed in the Senate.
In October, the government was forced to preserve the authority and allow it to conduct a review of emissions trading to secure the votes it needed from the Palmer United Party to pass its direct action scheme, which will pay polluters to reduce emissions.
Mr Hunt said the review would proceed in exactly the terms agreed to with PUP Leader Clive Palmer and on Monday wrote to the authority's chair Bernie Fraser requesting he launch the review.
The authority has been asked to publish three reports: a draft report on what Australia's future emissions reduction goals should be by June 30, 2015, a draft report on emissions trading schemes by November 30 2015, and a final report by June 2016 recommending what actions Australia should take to meet its obligations under a global climate deal expected to be reached in Paris next year.
Fairax Media undertsands the costs of conducting the reviews are expected to be covered by the Department of the Environment's existing budget.
Under the review's terms of reference, the authority will investigate if and when Australia should implement an emissions trading scheme, and what Australia's emissions reduction targets should be after 2020.
When he made the deal with Mr Palmer in October, Mr Hunt said the review was just a necessary "gesture" to pass direct action and would not result in any policy change from the government.
However sources in the Palmer camp believe the authority review could trouble the government as it prepares to undertake its own review of Australia's emissions reduction targets in the lead up to the global climate summit in Paris in December 2015.
That review will be conducted by the Department of Prime Minister and Cabinet and will focus on setting Australia's emissions reduction targets beyond 2020.
The government has indicated it intends to set new targets in mid-2015.
